1. Issued common stock for $110,000 cash. 2. Purchased $180,000 of merchandise on account. 3. Sold merchandise that cost $160,000 for $318,000 on account. 4. Collected $282,000 cash from accounts receivable. 5. Paid $160,000 on accounts payable. 6. Paid $46,000 of salaries expense for the year. 7. Paid other operating expenses of $62.000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $21,600 9,000 1,800 1,800 1,800 Percent Likely to Be Allowance Uncollectible Balance 0.01 0.05 0.10 0.20 0.50 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 Sage Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? Complete this question by entering your answers in the tabs below. Reg A Req B Inc Reg B Stmt of Reg B Bal Req B Stmt Stmt Reqc Changes Sheet Cash Flows Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.) Event SAGE INC. Accounting Equation for the Year 1 Liabilities Equity Merchandise Accounts + Common Retained Inventory Payable Stock Earnings + Assets NRV Accounts Receivable Accounts Titles for Retained Earnings Cash 1. 2. + + 3a. - + + 3b. 4. 5. + 6. + 7. 8. Bal 0 0 0 Prepare the income statement for Sage Inc. for Year 1. SAGE INC. Income Statement For the Year Ended Year 1 Operating expenses Total operating expenses 0 Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0 Balance Sheet As of the End of the Year 1 Assets 0 $ 0 Total assets Liabilities 0 Total liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 Statement of Cash Flows For the Year Ended Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities 0 Net cash flows from financing activities Net change in cash 0 Ending cash balance $ $ 0 What is the net realizable value of the accounts receivable at December 31, Year 1? Net realizable value
