Ming Inc. experienced the following transactions for 2011, its first year of operations: 1. Issued common stock

Question:

Ming Inc. experienced the following transactions for 2011, its first year of operations:
1. Issued common stock for \(\$ 50,000\) cash.
2. Purchased \(\$ 145,000\) of merchandise on account.
3. Sold merchandise that cost \(\$ 85,000\) for \(\$ 136,000\) on account.

4. Collected \(\$ 115,000\) cash from accounts receivable.
5. Paid \(\$ 85,000\) on accounts payable.
6. Paid \(\$ 25,000\) of salaries expense for the year.
7. Paid other operating expenses of \(\$ 15,000\).
8. Ming adjusted the accounts using the following information from an accounts receivable aging schedule:

image text in transcribed

Required

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

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

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: