Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
17. On June 30, paid off notes payable $120,000 (issued in 2020) and associated interest $6,000 (including $2,000 interest payable on the balance sheet). 18.
17. On June 30, paid off notes payable $120,000 (issued in 2020) and associated interest $6,000 (including $2,000 interest payable on the balance sheet). 18. On July 1, issued a note of $200,000 to bank (one year, annual interest rate 5%) for cash. 19. On July 5, purchased merchandise from Peterson $45,000, terms 2/10, n/30. 20. On July 14, paid off the balance to Peterson before discount period has lapsed. 21. On August 1, issued common stock 2,000 shares, $10 par, in exchange of a land with a fair market value of $80,000.
120,000 6,000 43,250 2.145 6,500 2,500 4,000 2,000 186,395 93,100 Current Assets Cash Notes Receivable Accounts Receivable Less Allowance for Doubtful A/Cs Interest Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in securities Land for future development Property, Plant, and Equipment Land Buildings Less: Accu. Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Intangible Assets Total Non-Current Assets Balance Sheet As of December 31, 2020 Current Liabilities 44.400 Notes Payable 16,000 Accounts Payable 34,730 Uneamed Revenue -2,930 Property Tax Payable 1,000 Income Tax Payable 61,000 Salary and Wages Payable 3,000 Utilities Payable 4,800 Interest Payable 162,000 Total Current Liabilities Non-Current Liabilities 28,000 Provisions Related to Pensions 51,000 Bonds Payable 47,000 Total Non-Current Liab. Total Liabilities 165,000 Common Stock 660,000 Preferred Stock -220,000 Paid-in-capital - Common Stock 59,000 Paid-in-capital - Preferred Stock 8,000 Retained Earnings 90,000 Accu. Other Comp. Income 50,000 Less: Treasury Stock 938,000 Total Shareholders' Equity 300,000 393,100 579,495 150,000 100,000 80,500 10,000 195,005 -5,000 -10,000 520,505 Assignments Required: 1) Making journal entries for each transaction in chronological order. 2) Prepare adjusting entries and adjusted trial balance. 3) Prepare Income Statement, Retained Earnings Statement, and Balance Sheet. 4) Making closing entries noharun should submit one completed copy
17. On June 30, paid off notes payable $120,000 (issued in 2020) and associated interest $6,000 (including $2,000 interest payable on the balance sheet).
18. On July 1, issued a note of $200,000 to bank (one year, annual interest rate 5%) for cash.
19. On July 5, purchased merchandise from Peterson $45,000, terms 2/10, n/30.
20. On July 14, paid off the balance to Peterson before discount period has lapsed.
21. On August 1, issued common stock 2,000 shares, $10 par, in exchange of a land with a fair market value of $80,000.
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66914a1e95829_72666914a1e34a76.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66914a1f1b8d0_72666914a1ebe9fe.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started