Pina Colada Corp.'s balance sheet at December 31, 2024, is presented as follow. PINA COLADA CORP....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pina Colada Corp.'s balance sheet at December 31, 2024, is presented as follow. PINA COLADA CORP. Balance Sheet December 31, 2024 Cash $41,820 Accounts payable $43,520 Common stock ($10 Accounts receivable 77,350 136,000 par) Allowance for doubtful accounts (2,550) Retained earnings 216,580 Supplies 7,480 Land 68,000 Buildings 241,400 Accumulated depreciation-buildings (37,400) $396,100 $396,100 During 2025, the following transactions occurred. 1. On January 1, Pina issued 2,040 shares of $40 par, 7% preferred stock for $83,640. 2. On January 1, Pina also issued 1,530 shares of the $10 par value common stock for $35,700. 3. Pina performed services for $544,000 on account. 4. On April 1, 2025, Pina collected fees of $61,200 in advance for services to be performed from April 1, 2025, to March 31, 2026. 5. Pina collected $469,200 from customers on account. 6. Pina bought $59,670 of supplies on account. 7. Pina paid $54,740 on accounts payable. 8. Pina reacquired 680 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $319,940. 10. 11. On December 31, 2025, Pina declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $2,890 which originated in 2024 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $10,030 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $5,950 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $17,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) (a) Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. Pina Colada Corp.'s balance sheet at December 31, 2024, is presented as follow. PINA COLADA CORP. Balance Sheet December 31, 2024 Cash $41,820 Accounts payable $43,520 Common stock ($10 Accounts receivable 77,350 136,000 par) Allowance for doubtful accounts (2,550) Retained earnings 216,580 Supplies 7,480 Land 68,000 Buildings 241,400 Accumulated depreciation-buildings (37,400) $396,100 $396,100 During 2025, the following transactions occurred. 1. On January 1, Pina issued 2,040 shares of $40 par, 7% preferred stock for $83,640. 2. On January 1, Pina also issued 1,530 shares of the $10 par value common stock for $35,700. 3. Pina performed services for $544,000 on account. 4. On April 1, 2025, Pina collected fees of $61,200 in advance for services to be performed from April 1, 2025, to March 31, 2026. 5. Pina collected $469,200 from customers on account. 6. Pina bought $59,670 of supplies on account. 7. Pina paid $54,740 on accounts payable. 8. Pina reacquired 680 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $319,940. 10. 11. On December 31, 2025, Pina declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $2,890 which originated in 2024 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $10,030 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $5,950 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $17,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) (a) Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4.
Expert Answer:
Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
Posted Date:
Students also viewed these accounting questions
-
Q1. The following transactions occurred during Year 1, the first year of business, for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits....
-
Q1. The following transactions occurred during Year 2, the second year of business for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits....
-
a random sample of 22 observations taken from a population that is normally distributed produced a sample mean of 58.5 and a standard deviation of 7.5. Find the range for the p-value and the critical...
-
Identify and explain five challenges faced by monetary policy makers.
-
What is meant by the Goldilocks economy of the late 1990s? How do you explain its main features?
-
Income distribution. Interpret the results of Problem 62 with both a graph and a description of the graph.
-
1. The petty cash fund of the Rio Agency is established at $75. At the end of the current period, the fund contained $14 and had the following receipts: film rentals, $19, and refreshments for meet-...
-
Guzman Inc. operates the Home Appliance Division as a profit center. Operating data for this division for the year ended December 31, 2014, are shown: In addition, Guzman incurs $150,000 of indirect...
-
Prepare a flexible budget for JKL Inc. based on the following data for the month of March 2024: Particulars Actual ($) Flexible ($) Sales Revenue $100,000 - Variable Costs $40,000 $35,000 Fixed Costs...
-
Nuri Cemerlang Corporation has 8% semi annually convertible bond and will mature in another 30 years. The RM18 million bond issue was made 10 years ago. The conversion price is RM40 and the share is...
-
A humane society claims that less than 69% of households in a certain country own a pet. In a random sample of 500 households in that country, 330 say they own a pet. At a = 0.01, is there enough...
-
11. Convert the given NFA to DFA: 1 a 3 2 a, b
-
89. _______ makes designers consider how a product's design can facilitate storage and transportation. a. Design for service b. Design for logistics c. Design for reliability/quality d. Design for...
-
Watch the "Reed Hastings Revealed" video and answer the discussion questions. C 4. How does it currently differ from its competitors? 5. Why has Netflix been successful? What must it do to remain...
-
Employment Information 1. Tanja's received salary of $93,500 in 2023. In addition, she was awarded a year-end bonus of $12,000, all of which is payable in January 2024. 2. Tanja's employer sponsors a...
-
Is this increased security (gained by knowing of convicted sex offenders in your neighborhood) worth the "reduction" of the criminals privacy? A yes/no answer by itself is not sufficient. Your answer...
-
Determine two different Hamilton circuits in each of the following graphs. A B F G
-
Why is the accounting function of a firm likely to be centralized? What aspects of the accounting function should be centralized?
-
The implication from the discussion in this chapter is that as a company becomes more global, it concentrates more on the informal and subtle mechanisms for controlling global operations than it does...
-
What role does MIS play? Do they have a chief information officer? Do they have a Web site? How in-depth do you consider it to be? You may wish to compare it with other sites.
Study smarter with the SolutionInn App