164 week #10 Bond Homework due A Challenging Cash Flow Problem- in a Problem 194 The following balances are from the beginning of the year for Sam's Town Company as of December 31, 2018: Cash 120,000 Accounts Receivable 40.000 Allowance for Doubtful Accts 2,000 Inventory 60,000 (3 junkets) Prepaid Rent 3,000 1000 Equipment 200,000 Accumulated Depreciation 60,000 12/31 Security Deposit 10,000 6130 12131 6/30 Accounts Payable 92,000 5000 5,000 Wages Payable 5,000 make Interest Payable 5.000 Taxes Payable 8,000 borrowed Note Payable 100,000 Common Stock ($1 each) 60,000 V/P Retained Earnings 101,000 1001000 BB 10,000 90,900 For 2019: 9800 x /2 = 4500 Received all beginning accounts receivable and paid all beginning accounts payable Bought five Junkets at $25,000 each, 20% down, rest next year Sold six Junkets, $50,000 each, 60% down, 40% next year Paid cash wages of $40,000 and at the end of the year owed employees $2,000 Paid utilities of $12,000 and advertising of $10,000 On June 30", they paid the annual payment of $10,000 principal plus interest on the Note Payable. The note was taken out on June 30" of the previous year. Can you figure out the interest rate?) On August 1, purchased a new wagon for delivery of the junkets for $20,000. On December 1, they declared and paid a dividend of $5,000. On December 31, the company borrowed $75,000 from the bank and used the proceeds to purchase a piece of land. The note is payable in five years. The interest at 6% is payable annually on December 31 of each year starting in 2019. During the year they paid $8,000 in rent (rent is $1,000 per month) The company uses the FIFO inventory flow assumption The depreciation for the year was $40,000 The company estimates that 4% of its accounts receivable will never be collected. During the year the company wrote off $1,500 in bad accounts. The tax rate is 30%. During the year the company paid all of last year's taxes and 50% of 2019 taxes. lolo intrest rate Prepare Journal Entries, T-Accounts, and Financial Statements for the year 2019