ABC Corp Transactions for 2018

Paid $1,000 on Accounts Payable

At beginning of year, purchased inventory with additional bank loan, $18,000. Same terms as previous loan.

Sales on credit, $90,000, COGS $15,000

Collected $105,000 on Accounts Receivable

Paid $7,000 on Loan Payable

Office rent, $26,000.

Paid wages, $27,500.

Paid utilities, $11,000.

At beginning of year, purchased furniture, $12,000, 20 year life, $0 salvage.

Other information:

Office supplies on hand at end of year $250.

Corporate income tax rate is 15%.

Interest on loan has not been paid

Prepare all necessary adjusting entries.

Prepare the Income Statement, Statement of Changes in Retained Earnings, the Balance Sheet, and Statement of Cash Flows

ABC Corp Transactions for 2017 Started business by selling 1,000 shares of common stock for $50 per share. Par value was $10. Purchased computer equipment for $8,500 cash, useful life 3 years, salvage value $100. Purchased inventory with cash, $17,000. Sales on credit, $75,000, COGS 13,000 Purchased office supplies on credit, $6,000. Obtained a 3 year bank loan, $18,000, 8% Office rent, $12,000. Paid wages, $15,000. Paid utilities, $9,000. Paid dividends, $1,350 Other information for the year: Office supplies on hand $1,500. Paid corporate income tax, rate is 15%. Interest on loan was paid. Requirements: Prepare all necessary adjusting entries (assume cash was paid for any adjustments), Prepare the Income Statement, Statement of Changes in Retainined Earnings, and the Balance Sheet