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30. On October 1st, you purchased 11,250 units at the decreased price of $61 per unit. The purchase was made on account. 31. On October

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30. On October 1st, you purchased 11,250 units at the decreased price of $61 per unit. The purchase was made on account. 31. On October 10th you paid your supplier $132,000 cash for inventory purchased on account. November 32. November 1st, the CEO, in an effort to adjust ratios, ordered the repurchasing of the company's own stock. The quantity of stock repurchased was 175,000 shares. 33. Purchased a three-year building insurance policy on November 1st for $442,000 cash. [Adjusting Entry Required] 34. On November 17th a customer pays you $450,000 for work that you will finish in January of 2020. 35. November 19th, your customers bought 8,650 units of your product at $110 per unit. The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account. 36. An employment contract is signed with a new regional manager. You have offered him $150,000 per year. He will not begin working for the company until March 2020. December 37. Wages earned from July 1st through December 31st was $480,000. Wages earned between Dec. 15th and Dec 31st amounting to $27,500 was not paid this until Jan 7th. 38. At the end of the year, $42,000 cash was paid to the local bank for the long-term note payable taken out on January 1, 2019. $38,000 of this was applied to the loan principal. The remaining amount was the accumulated interest due for 2019. 39. On December 31st, the marketable (trading) securities you purchased on September 23, 2019 transaction now has a fair market value of $134,000. 40. On December 31st, $480,000 depreciation expense for the year was calculated for equipment purchased before January 1, 2019. 41. On December 31st, you declare dividends of $.32 per share to be paid at a later date. 42. On December 31st, the utility bill was paid for the year. The amount was $66,000 and you paid in cash. COMPANY INFORMATION BALANCE SHEET 2018 2017 Your company began operations on January 1, 2016. From January 1, 2017 - December 31, 2018 your company's stock is traded on the NYSE with 4,000,000 common shares outstanding with a par value of $.25. At the close of December 31, 2019, your company's stock was trading at $4.25 per share. On November 1st the stock was trading at $3.40. At the end of 2018 and 2017, the value of your stock was $3.80 and $2.90, respectively. > Use the Cost Method for treatment of Treasury Stock > Use the Allowance Method in accounting for Bad Debts, specifically the Percentage of Accounts Receivable Method. The inventory valuation used by your company is LIFO. The company's inventory on January 19, 2019 consists of 15,000 units. December 31, Assets Cash Marketable Securities Accounts Receivable Allowance for Bad Debt Interest Receivable Prepaid Advertising Prepaid Insurance Prepaid Rent Office Supplies Inventory $ 525,710 75,000 455,000 (25,000) 23,676 $ 658,079 15,000 525,000 (105,000) 21,574 139,836 29,050 3,520 975,000 2,201,792 148,945 34,982 5,400 775,000 2,078,980 Current Assets Office Furniture Equipment Accumulated Depreciation Long-Term Notes Receivable Land Patent 5,000,000 (1,500,000) 5,000,000 (2,000,000) 285,000 1,450,000 1,450,000 Non-Current Assets 4,735,000 Total Assets $6,936,792 4,950,000 $7,028,980 Prior Income Statement Account Balances 2018 2017 Sales, net $ 2,280,000 $2,500,000 Cost of Goods Sold 850,000 780,000 Wages Expense 565,000 785,000 Utility Expense 37,050 37,500 Insurance Expense 23,905 21,097 Rent Expense 18,009 17,080 Fuel Expense 2,900 1,400 Office Supplies Expense 6,000 5,000 Advertising Expense 23,000 25,000 Bad Debt Expense 60,750 45,000 Depreciation Expense 500,000 500,000 Interest Income 23,676 21,574 Interest Expense 56,250 56,250 Gain on Sale 34,900 Loss on Sale 120,000 $ 450,000 35,000 $570,000 33,000 Liabilities Accounts Payable Wages Payable Interest Payable Short-Term Notes Payable Deferred Revenue Dividends Payable Bond Interest Payable 155,000 135,000 Current Liabilities 640,000 1,250,000 738,000 1,250,000 Long-Term Notes Payable Bonds Payable Total Liabilities 1,890,000 1,988,000 1,000,000 1,824,406 1,000,000 1,824,406 Stockholders' Equity Common Stock Additional Paid-In Capital Treasury Stock Contributed Capital Retained Earnings 500,000 1,722,386 Total Stockholders' Equity 5,046,792 Total Liabilities & SE $6,936,792 500,000 1,716,574 5,040,980 $ 7,028,980 30. On October 1st, you purchased 11,250 units at the decreased price of $61 per unit. The purchase was made on account. 31. On October 10th you paid your supplier $132,000 cash for inventory purchased on account. November 32. November 1st, the CEO, in an effort to adjust ratios, ordered the repurchasing of the company's own stock. The quantity of stock repurchased was 175,000 shares. 33. Purchased a three-year building insurance policy on November 1st for $442,000 cash. [Adjusting Entry Required] 34. On November 17th a customer pays you $450,000 for work that you will finish in January of 2020. 35. November 19th, your customers bought 8,650 units of your product at $110 per unit. The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account. 36. An employment contract is signed with a new regional manager. You have offered him $150,000 per year. He will not begin working for the company until March 2020. December 37. Wages earned from July 1st through December 31st was $480,000. Wages earned between Dec. 15th and Dec 31st amounting to $27,500 was not paid this until Jan 7th. 38. At the end of the year, $42,000 cash was paid to the local bank for the long-term note payable taken out on January 1, 2019. $38,000 of this was applied to the loan principal. The remaining amount was the accumulated interest due for 2019. 39. On December 31st, the marketable (trading) securities you purchased on September 23, 2019 transaction now has a fair market value of $134,000. 40. On December 31st, $480,000 depreciation expense for the year was calculated for equipment purchased before January 1, 2019. 41. On December 31st, you declare dividends of $.32 per share to be paid at a later date. 42. On December 31st, the utility bill was paid for the year. The amount was $66,000 and you paid in cash. COMPANY INFORMATION BALANCE SHEET 2018 2017 Your company began operations on January 1, 2016. From January 1, 2017 - December 31, 2018 your company's stock is traded on the NYSE with 4,000,000 common shares outstanding with a par value of $.25. At the close of December 31, 2019, your company's stock was trading at $4.25 per share. On November 1st the stock was trading at $3.40. At the end of 2018 and 2017, the value of your stock was $3.80 and $2.90, respectively. > Use the Cost Method for treatment of Treasury Stock > Use the Allowance Method in accounting for Bad Debts, specifically the Percentage of Accounts Receivable Method. The inventory valuation used by your company is LIFO. The company's inventory on January 19, 2019 consists of 15,000 units. December 31, Assets Cash Marketable Securities Accounts Receivable Allowance for Bad Debt Interest Receivable Prepaid Advertising Prepaid Insurance Prepaid Rent Office Supplies Inventory $ 525,710 75,000 455,000 (25,000) 23,676 $ 658,079 15,000 525,000 (105,000) 21,574 139,836 29,050 3,520 975,000 2,201,792 148,945 34,982 5,400 775,000 2,078,980 Current Assets Office Furniture Equipment Accumulated Depreciation Long-Term Notes Receivable Land Patent 5,000,000 (1,500,000) 5,000,000 (2,000,000) 285,000 1,450,000 1,450,000 Non-Current Assets 4,735,000 Total Assets $6,936,792 4,950,000 $7,028,980 Prior Income Statement Account Balances 2018 2017 Sales, net $ 2,280,000 $2,500,000 Cost of Goods Sold 850,000 780,000 Wages Expense 565,000 785,000 Utility Expense 37,050 37,500 Insurance Expense 23,905 21,097 Rent Expense 18,009 17,080 Fuel Expense 2,900 1,400 Office Supplies Expense 6,000 5,000 Advertising Expense 23,000 25,000 Bad Debt Expense 60,750 45,000 Depreciation Expense 500,000 500,000 Interest Income 23,676 21,574 Interest Expense 56,250 56,250 Gain on Sale 34,900 Loss on Sale 120,000 $ 450,000 35,000 $570,000 33,000 Liabilities Accounts Payable Wages Payable Interest Payable Short-Term Notes Payable Deferred Revenue Dividends Payable Bond Interest Payable 155,000 135,000 Current Liabilities 640,000 1,250,000 738,000 1,250,000 Long-Term Notes Payable Bonds Payable Total Liabilities 1,890,000 1,988,000 1,000,000 1,824,406 1,000,000 1,824,406 Stockholders' Equity Common Stock Additional Paid-In Capital Treasury Stock Contributed Capital Retained Earnings 500,000 1,722,386 Total Stockholders' Equity 5,046,792 Total Liabilities & SE $6,936,792 500,000 1,716,574 5,040,980 $ 7,028,980

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