Huggins Inc. experienced the following transactions for 2010, its first year of operations. 1. Issued common stock
Question:
Huggins Inc. experienced the following transactions for 2010, its first year of operations.
1. Issued common stock for $60,000 cash.
2. Purchased $210,000 of merchandise on account.
3. Sold merchandise that cost $130,000 for $245,000 on account.
4. Collected $215,000 cash from accounts receivable.
5. Paid $196,000 on accounts payable.
6. Paid $38,000 of salaries expense for the year.
7. Paid other operating expenses of $28,000.
8. Huggins adjusted the accounts using the following information from an accounts receivable aging schedule.
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Required
a. Organize the transaction data in accounts under an accounting equation.
b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Huggins Inc. for 2010.
c. What is the net realizable value of the accounts receivable at December 31,2010?
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
a Assets Liab Equity Event Cash A Rec Allow Mdse Inv Accts Pay Com Stock Ret Earn Acct TitleRe 1 60000 NA NA NA NA 60000 NA 2 NA NA NA 210000 210000 N...View the full answer
