155 Module 9 Homework Problem 9.1 Charleigh Co. purveyor of fine, fine things, had the following balances at December 31, 2020: Cash 44,000 Accounts Receivable 60,000 Allowance for doubtful nects 1.000 Inventory 50,000 (1 thing) Equipment 190,000 Accumulated Depreciation Equipment 60,000 Land 50,000 Patent 20.000 Accounts Payable 42,000 Salary Payable 4,000 Rent Payable 2,000 Taxes Payable 2,000 Long-Term Debt 80,000 Common Stock (S1 per share) 90,000 Retained Eamings 133,000 During 20x1 the following transactions occurred: Jan 1. received all beg A/R and paid all Beg A/P Mar 1 bought 2 things for $60,000 cach. (Paid 25% down and rest payable in one year) April 15, paid year 20X0 taxes payable May 1, sold one thing for S120.000 (received 3/4 down and the rest in one year) May 15, bought I thing for $80,000 (Paid 25% down and rest payable in one year) July 1, company wrote of 5600 in bad debts July 1, sold one thing for $160,000 (received 75% down and the rest will be paid in one year) Aug 1, purchased piece of equipment for $10,000 cash. Sept 1 Sold 50,000 shares of common stock for $50,000 Oct 1. Purchased a piece of land for $50,000 Dec 1. declared and paid 5.20 per share dividend. Dec 31. paid an annual payment on long term debt-$28,000. Of that amount, $8,000 was for interest and S20,000 was for principal During the year the company paid 15 months tent of $15,000. Also during the year the company paid salaries of $12,000 in cash, and at the end of the year they owed $3,000 for salaries. Depreciation for the year is $10,000. The long-term debt is payable in $20,000 principal payments plus interest of 10% cach December 31. The tax rate is 30% and during the year the company paid 50% of 20X1 taxes. The company uses the FIFO inventory system. The company estimates that 3% of its receivables will ultimately be uncollectible. Journalize the above transactions and post them to T-Accounts. Prepare any necessary adjustments. Prepare a P&L, Statement of Owners' Equity, Balance Sheet and Cash Flow Statement for the year 20X1. ACCT 1010 MAP FALL 2021