Since January 1 , 2 0 2 0 , John and Mary Company provide sales and services
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Question:
Since January John and Mary Company provide sales and services for bike riders. It
shows the following balances where all have normal balances:
Cash $
Accounts Receivable $
Copyrights $
Land $
Taxes Payables $
Common Stocks shares $
Retained Earnings $
Wages Payable $
Inventory bikes $
Office Supplies $
During January the following transactions occur:
January Rented space for one year paid in advance, $$month
Purchase insurance for the business, $ for months
January Purchase special Equipment on account for $ with$ installation cost
with life of years and salvage value of $ Company uses straight line method.
January Provide services to customers on account, $ Also sold for $ cash bikes, costing
$
January Receive cash in advance from customers for services to be provided in the future, $
January Paid off Wages Payable, and additional payment of salaries, $
January Receive cash on accounts receivable, $
January Pay cash for six month insurance for $ starting February of next year.
The following information is available on January
a Company lawyer believes it is probable that the company will be responsible for
environmental damages, however, amount can not be determined at this time.
b Company purchased the nest door property for expansion for $ receiving bank
mortgage. An appraiser value the building for $ and land $
c Rent insurance for the month of January have expired.
d Supplies remaining at the end of January is $
e By the end of January, $ of services has been provided to customers who paid in
advance on January
f On January the equipment was exchanged in a cash transaction with a new equipment,
the new equipment was $
g Unpaid salaries at the end of January are $
h If earnings and cash available, pay $ dividends to stockholders.
i It was determined that Addy, one of the customers, will not be able to pay his balance of
$
j Purchased special supplies for $ FOB Destination that arrived on February
Required:
Record January st balances followed by recording the above transactions in an
Excel sheet using the Accounting Equation similar to what we practiced in class,
that includes end of period adjusting entries, if any
Prepare multistep income statement as of January similar to what we practiced
in class. Dont forget EPS data.
Prepare the Statement of Retained Earnings
Prepare a classified balance sheet eg current assets and noncurrent as of
January similar to what we practiced in class.
List financial ratios that seem to be satisfactory or not satisfactory. use text box
for answering this question
This problem will be graded for accuracy and presentation
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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