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1. Tara's Treasures has the following Balances on Dec 31 2023: Net Sales Accounts Receivable $950,000 $550,000 Allowance for Uncollectible Account $3,000 (Credit Balance)
1. Tara's Treasures has the following Balances on Dec 31" 2023: Net Sales Accounts Receivable $950,000 $550,000 Allowance for Uncollectible Account $3,000 (Credit Balance) a. Assume Tara estimates that 5% of Net Sales may not be paid. Calculate the Bad Debt Expense and RECORD the entry in the Journal. What would be the REALIZABLE Value after the journal entry? b. Assume Tara estimates that 7% of Accounts Receivable will not be paid. Calculate the Bad Debt Expense and RECORD the entry in the Journal. What would be the REALIZABLE Value after the journal entry? 2. Keira's Kar Company purchases a Machine and incurs the following costs: Purchase Price $250,000 Sales Tax $5,000 Installation Cost $1,500 $500 Delivery Costs Required: a. Calculate the Total Cost of the Machine and RECORD the purchase for CASH in the Journal. b. Keira estimates the MACHINE will have a $10,000 Salvage Value and a 5 Year useful life. Calculate the annual DEPRECIATION EXPENSE and RECORD it in the Journal. c. After Year 1... What is the Book Value or Carrying Value of the Machine? d. Assume that after 5 years, and the Machine is FULLY Depreciated (Accumulated Depreciation Balance = $247,000), Keira sells the Machine for $8,000 Cash. Calculate the Gain or Loss on Sale.....and Record the Sale of the Machine in the Journal. 3. Tara's Treasures has both Preferred Stock, $100 Par, 6% Dividend and Common Stock $1 Par. Tara had the following transactions during the year related to her stock: a. Tara Issues (Sells) 20,000 Shares of Common Stock for $8 per share in Cash. b. Tara Issues (Sells) 5,000 Shares of Preferred Stock at Par Value for Cash. c. Tara Issues (Sells) 30,000 Shares of Common Stock for $13 per share in Cash. d. Tara Issues (Sells) 7,000 Shares of Preferred Stock at Par for Cash. Required: Record the Stock Transactions in the Journal.
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