Hammond Inc. experienced the following transactions for 2011, its first year of operations:
1. Issued common stock for \(\$ 80,000\) cash.
CHECK FIGURES

b. Net Income: \(\$ 62,520\)
Total Assets: \(\$ 157,520\)
2. Purchased \(\$ 225,000\) of merchandise on account.
3. Sold merchandise that cost \(\$ 148,000\) for \(\$ 294,000\) on account.
4. Collected \(\$ 242,000\) cash from accounts receivable.
5. Paid \(\$ 210,000\) on accounts payable.
6. Paid \(\$ 46,000\) of salaries expense for the year.
7. Paid other operating expenses of \(\$ 35,000\).
8. Hammond adjusted the accounts using the following information from an accounts receivable aging schedule.

Required

a. Record the above transactions in general journal form and post them to T-accounts.

b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Hammond Inc. for 2011.

c. What is the net realizable value of the accounts receivable at December 31, 2011?

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Number of Days Percent Likely to Allowance Balance Past Due Current Amount Be Uncollectible $33,000 .01 0-30 12,000 31-60 3,000 61-90 2,500 Over 90 days 1,500 15028 .05 .10 .20 .50