13. Assuming AG is in the first year of operations in and starts in 11/2021 by filing articles of incorporation establishing 10,000 shares of 2.00 par stock are available to issue. AG sells a gaming product that requires an annual subscription. The fair value of the product is $250 / unit and the fair value of the subscription is $750 /year. An investor purchases 6,000 of shares paying fair value of 25.00 /share. AG found a storefront and prepaid 1 year of rent for $36,000. AG purchased inventory of 500 units at a cost of $50 /unit on credit. Assume the Market Value (NRV) of ending inventory is $20,000. AG made the following credit sales: On 11/1 AG sold 100 units and 12/1 AG sold 150 units for fair value (see above). On 12/1 AG sold 150 units at a discount for $900. AG paid 60% of its supplier liabilities. AG was paid 80% from the customers. AG uses percent of sales method and established a .005 rate based on gross credit sales AG purchased stock of another company for $100,000. By year-end the stock was worth $110,000. AG did not sell the stock. AG paid salaries of $100,000. Accrue income tax at a rate of 21%. AG paid a dividend of $10,000. Please prepare journal entries (including closing), Income Statement and Balance Sheet based on the above information only. 13. Assuming AG is in the first year of operations in and starts in 11/2021 by filing articles of incorporation establishing 10,000 shares of 2.00 par stock are available to issue. AG sells a gaming product that requires an annual subscription. The fair value of the product is $250 / unit and the fair value of the subscription is $750 /year. An investor purchases 6,000 of shares paying fair value of 25.00 /share. AG found a storefront and prepaid 1 year of rent for $36,000. AG purchased inventory of 500 units at a cost of $50 /unit on credit. Assume the Market Value (NRV) of ending inventory is $20,000. AG made the following credit sales: On 11/1 AG sold 100 units and 12/1 AG sold 150 units for fair value (see above). On 12/1 AG sold 150 units at a discount for $900. AG paid 60% of its supplier liabilities. AG was paid 80% from the customers. AG uses percent of sales method and established a .005 rate based on gross credit sales AG purchased stock of another company for $100,000. By year-end the stock was worth $110,000. AG did not sell the stock. AG paid salaries of $100,000. Accrue income tax at a rate of 21%. AG paid a dividend of $10,000. Please prepare journal entries (including closing), Income Statement and Balance Sheet based on the above information only
