Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

1) ABC Company started business on January 1, 2018 and had the following transactions in the month of January 2018: 1. On January 2, ABC

image text in transcribed
image text in transcribed
1) ABC Company started business on January 1, 2018 and had the following transactions in the month of January 2018: 1. On January 2, ABC sold shares of the company and received $800,000 in cash 2. On January 4, the company bought inventory for resale from RTY Co. and promised to pay cash at a later date. The cost of the inventory was $400,000. 3. On January 8, ABC sold inventory to YUT Co. at a sale price of $400,000. YUT paid $200,000 in cash and agreed to pay the balance at a later date. The cost of the inventory sold was $250,000. 4. On January 15, ABC sold inventory to HNG Co, at a sale price of $200,000 and received the full amount in cash on that day. The cost of the inventory sold was $140,000. 5. On January 31, the company paid rent of $20,000, which was the rent for the sales office for the month of January. 6. The company paid $300,000 in cash to RTY Co. as partial payment for the inventory they purchased on January 4. 7. On January 31, the company paid $50,000 in cash for salary earned by employees in the month of January. 8. On January 31, the company received $150,000 in cash from YUT as partial payment fo the amount owed by YUT for the sale made on January 8. Required: (Show all calculations) a. What is the cash balance of ABC as of January 31, 2018? b. What is the balance in Accounts Receivable as of January 31, 2018? c. What is the balance in Accounts Payable as of January 31, 2018? d. What is the cost of the inventory still in ABC's possession as of January 31, 2018? 70-Days 1-3 e. What are the total sales revenues for ABC for the month of January 2018 f. What is the cost of the inventory that ABC sold in the month of January? 8. What are the total expenses (including cost of goods sold) for ABC for the month of January 2018? h. What is the "profit" that ABC made in the month of January 2018? Show calculations. Ignore taxes. i. What is the balance in stockholders' equity as of January 31, 2018? Remember all profits for the month belong to the stockholders of the company. J. Prepare an income statement for ABC for the month of January 2018. k. Prepare a Balance Sheet for ABC for the month of January 2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions