Question
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Balance sheet as of December 31 ASSETS LIABILITIES Cash...
Balance sheet as of December 31
ASSETS |
|
| LIABILITIES |
|
Cash | $ 37,000 |
| Accounts Payable | $ 40,000 |
Marketable Securities | 10,000 |
| Wages Payable | 10,800 |
Accounts Receivable | 63,000 |
| Taxes Payable | 7,200 |
Uncollectible Accounts | -2,000 |
| Short-Term Note Payable | 30,000 |
Inventory | 74,000 |
| Interest Payable | 2000 |
Supplies | 4,000 |
| Unearned Revenue | 20,000 |
Prepaid Insurance | 7,500 |
| Unearned Consulting Rev. | 5,000 |
Total Current Assets | $193,500 |
| Total Current Liabilities | $ 115,000 |
|
|
|
|
|
Land | $111,500 |
| Long-Term Notes Payable | $ 50,000 |
Equipment | 217,000 |
| Bonds Payable | 100,000 |
Accumulated Depreciation | -97,000 |
| Mortgage Payable | 350,000 |
Building | 590,000 |
| Total Long-Term Liabilities | $500,000 |
Accumulated Depreciation | -110,000 |
|
|
|
Intangible Assets | 60,000 |
| STOCKHOLDER EQUITY |
|
Total Long-Term Assets | $771,150 |
| Capital Stock | $100,000 |
|
|
| Paid in Capital | 140,000 |
|
|
| Retained Earnings | 110,000 |
|
|
| Total Stockholders Equity | $350,000 |
Total Assets | $965,000 |
| Total Liabilities & Equity | $965,000 |
| Journal entries | |||
| No. | Account Titles and Explanation | Debit | Credit |
| 1 | Cash | $40,000 | |
| Capital Stock | $40,000 | ||
| 2 | Cash | $60,000 | |
| Short-Term Note Payable | $60,000 | ||
| 3 | Prepaid Rent | $30,000 | |
| Cash | $30,000 | ||
| 4 | Retained Earnings | $10,500 | |
| Dividends Payable | $10,500 | ||
| 5 | Wages Payable | $10,800 | |
| Taxes Payable | $7,200 | ||
| Cash | $18,000 | ||
| 6 | Accounts Payable | $30,000 | |
| Discount Received | $600 | ||
| Cash | $29,400 | ||
| 7 | Cash | $38,000 | |
| Sales Revenue | $38,000 | ||
| 7 | Cost Of Goods Sold | $16,000 | |
| Inventory | $16,000 | ||
| 8 | Cash | $10,000 | |
| Consulting Service Revenue | $10,000 | ||
| 9 | Supplies | $4,500 | |
| Cash | $4,500 | ||
| 10 | Notes Receivable | $25,000 | |
| Accounts Receivable | $25,000 | ||
| 11 | Accounts Payable | $10,000 | |
| Cash | $10,000 | ||
| 12 | Inventory | $60,000 | |
| Accounts Payable | $60,000 | ||
| 13 | Inventory | $1,800 | |
| Cash | $1,800 | ||
| 14 | Cash | $28,000 | |
| Sales Revenue | $28,000 | ||
| 14 | Cost Of Goods Sold | $13,000 | |
| Inventory | $13,000 | ||
| 15 | Accounts Receivable | $62,000 | |
| Sales Revenue | $62,000 | ||
| 15 | Cost Of Goods Sold | $29,000 | |
| Inventory | $29,000 | ||
| 16 | Unearned Revenue | $4,000 | |
| Rental Revenue | $4,000 | ||
| 17 | Cash | $49,000 | |
| Discount Allowed | $1,000 | ||
| Accounts Receivable | $50,000 | ||
| 18 | Salary Expenses | $12,000 | |
| Tax Expenses | $50,000 | ||
| Cash | $62,000 | ||
| 19 | Repairs Expense | $6,000 | |
| Cash | $6,000 | ||
| 20 | Advertising Expense | $2,500 | |
| Accounts Payable | $2,500 | ||
| 21 | Mortgage Payable | $1,437 | |
| Interest Expense | $2,063 | ||
| Cash | $3,500 | ||
| 22 | Unearned Consulting Revenue | $5,000 | |
| Accounts Receivable | $10,000 | ||
| Consulting Service Revenue | $15,000 | ||
| 23 | Carriage Outwards | $1,200 | |
| Cash | $1,200 | ||
| 24 | Cash | $150,000 | |
| Capital Stock | $50,000 | ||
| Paid In Capital | $100,000 | ||
| 25 | Petty Cash | $800 | |
| Cash | $800 | ||
| 26 | Treasury Stock | $20,000 | |
| Cash | $20,000 | ||
| 27 | Accounts Payable | $60,000 | |
| Discount Received | $1,200 | ||
| Cash | $58,800 | ||
| 28 | Dividends Payable | 10500 | |
| Cash | $10,500 | ||
| 29 | Cash | $21,000 | |
| Sales Revenue | $21,000 | ||
| 29 | Cost Of Goods Sold | $9,500 | |
| Inventory | $9,500 | ||
| 30 | Cash | $20,000 | |
| Consulting Service Revenue | $20,000 | ||
| 31 | Inventory | $31,000 | |
| Accounts Payable | $31,000 | ||
| 32 | Inventory | $900 | |
| Cash | $900 | ||
| 33 | Accounts Payable | $2,500 | |
| Advertising Expense | $4,000 | ||
| Cash | $6,500 | ||
| 34 | Cash | $32,000 | |
| Sales Revenue | $32,000 | ||
| 34 | Cost Of Goods Sold | $15,000 | |
| Inventory | $15,000 | ||
| 35 | Accounts Receivable | $22,000 | |
| Consulting Service Revenue | $22,000 | ||
| 36 | Mortgage Payable | 1,437 | |
| Interest Expense | $2,063 | ||
| Cash | $3,500 | ||
| 37 | Cash | $68,600 | |
| Discount Allowed | $1,400 | ||
| Accounts Receivable | $70,000 | ||
| 38 | Salary Expenses | $18,000 | |
| Tax Expenses | $6,000 | ||
| Cash | $24,000 | ||
| 39 | Property Tax Expense | $4,100 | |
| Cash | $4,100 | ||
| 40 | Accounts Receivable | $75,000 | |
| Sales Revenue | $75,000 | ||
| 40 | Cost Of Goods Sold | $33,800 | |
| Inventory | $33,800 | ||
| 41 | Sales Return And Allowances | $1,700 | |
| Accounts Receivable | $1,700 | ||
| 42 | Short-Term Note Payable | $30,000 | |
| Interest Expense | $2,400 | ||
| Cash | $32,400 | ||
| 43 | Petty Cash | $700 | |
| Cash | $700 | ||
| 44 | Supplies | $3,900 | |
| Accounts Payable | $3,900 | ||
| 45 | Cash | $23,000 | |
| Sales Revenue | $23,000 | ||
| 45 | Cost Of Goods Sold | $11,600 | |
| Inventory | $11,600 | ||
| 46 | Cash | $17,000 | |
| Consulting Service Revenue | $17,000 | ||
| 47 | Cash | $9,000 | |
| Treasury Stock | $6,000 | ||
| Paid In Capital | $3,000 | ||
| 48 | Cash | $25,247 | |
| Notes Receivable | $25,000 | ||
| Interest Revenue | $247 | ||
| 49 | Inventory | $51,000 | |
| Accounts Payable | $51,000 | ||
| 50 | Accounts Payable | $31,000 | |
| Cash | $31,000 | ||
| 51 | Entertainment Expense | $250 | |
| Travel Expense | $265 | ||
| Miscellaneous Expense | $100 | ||
| Postage Expense | $240 | ||
| Supplies Expense | $190 | ||
| Petty Cash | $1,045 | ||
| 51 | Petty Cash | $345 | |
| Cash | $345 | ||
| 52 | Cash | $24,000 | |
| Sales Revenue | $24,000 | ||
| 52 | Cost Of Goods Sold | $11,500 | |
| Inventory | $11,500 | ||
| 53 | Unearned Revenue | $16,000 | |
| Rental Revenue | $16,000 | ||
| 54 | Accounts Receivable | $78,000 | |
| Sales Revenue | $78,000 | ||
| 54 | Cost Of Goods Sold | $37,000 | |
| Inventory | $37,000 | ||
| 55 | Legal Expenses | $1,500 | |
| Cash | $1,500 | ||
| 56 | Cash | $73,500 | |
| Discount Allowed | $1,500 | ||
| Accounts Receivable | $75,000 | ||
| 57 | Accounts Receivable | $27,000 | |
| Consulting Service Revenue | $27,000 | ||
| 58 | Accounts Payable | $4,000 | |
| Purchase Return And Allowances | $4,000 | ||
| 59 | Building | $351,300 | |
| Cash | $75,000 | ||
| Mortgage Payable | $276,300 | ||
| 60 | Utilities Expense | $7,500 | |
| Cash | $7,500 | ||
| 61 | Short-Term Note Payable | $60,000 | |
| Interest Expense | $592 | ||
| Cash | $60,592 | ||
| 62 | Cash | $15,000 | |
| Unearned Revenue | $15,000 | ||
| 63 | Sales Return And Allowances | $5,000 | |
| Accounts Receivable | $5,000 | ||
| 63 | Inventory | $2,200 | |
| Cost Of Goods Sold | $2,200 | ||
| 64 | Mileage Expense Account | $2,500 | |
| Cash | $2,500 | ||
| 65 | Depreciation Expense-Equipment | $500 | |
| Accumulated Depreciation-Equipment | $500 | ||
| 65 | Cash | $16,000 | |
| Accumulated Depreciation-Equipment | $6,500 | ||
| Equipment | $20,000 | ||
| Gain On Sale Of Equipment | $2,500 | ||
| 66 | Depreciation Expense-Equipment | 500 | |
| Accumulated Depreciation-Equipment | $500 | ||
| 66 | Accumulated Depreciation-Equipment | $18,500 | |
| Loss On Disposal Of Equipment | $2,800 | ||
| Equipment | $20,000 | ||
| Cash | $1,300 | ||
| 67 | Mortgage Payable | $1,437 | |
| Interest Expense | $2,063 | ||
| Cash | $3,500 | ||
| Adjusting entries | Calculations | |||
| No. | Account Titles and Explanation | Debit | Credit | |
| A1 | Depreciation Expense-Equipment | $9,500 | (3500*3)-500-500 | |
| Accumulated Depreciation-Equipment | $9,500 | |||
| A2 | Depreciation Expense-Building | $3,438 | 550000/40*3/12 | |
| Accumulated Depreciation-Building | $3,438 | |||
| A3 | Amortiztion Expense | $500 | ||
| Intangible Assets | $500 | |||
| A4 | Bad Debts Expense | $3,810 | 381000*1% | |
| Allowance for Uncollectible Accounts | $3,810 | |||
| A5 | Salaries Expense | $15,500 | ||
| Salaries Payable | $15,500 | |||
| A6 | Taxes Expense | $8,900 | ||
| Taxes Payable | $8,900 | |||
| A7 | Supplies Expense | $7,590 | 4000+4500+3900+190-5000 | |
| Supplies | $7,590 | |||
| A8 | Rent Expense | $7,500 | 30000*3/12 | |
| Prepaid Rent | $7,500 | |||
| A9 | Accounts Receivable | $14,000 | ||
| Consulting Service Revenue | $14,000 | |||
| A10 | Insurance Expense | $750 | 9000/3*3/12 | |
| Prepaid Insurance | $750 | |||
| A11 | Interest Receivable | $18 | 1000*7%*3/12 | |
| Interest Revenue | $18 | |||
| A12 | Interest Expense | $625 | 50000*5%*3/12 | |
| Interest Payable | $625 | |||
| A13 | Interest Expense | $1,250 | 100000*5%*3/12 | |
| Interest Payable | $1,250 | |||
Develop a trial balance using the information provided.
Answer & Explanation
Solved by verified expertAnswered by WorkingYaya on coursehero.com
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