Answered step by step
Verified Expert Solution
Question
1 Approved Answer
*ALSO NEED T CHARTS (debits and credits) for each note Super Bowl Inc. Statement of Financial Position As of December 31, 2018 ASSETS LIABILITIES 445,000
*ALSO NEED T CHARTS (debits and credits) for each note Super Bowl Inc. Statement of Financial Position As of December 31, 2018 ASSETS LIABILITIES 445,000 35,000 70.000 600 Note Payable 6% Acc. Payable Cash $10,000 24.000 Mortgage Payable 296,000 Total Liabilities Acc. Rec. Inventory Supplies Building $400,000 Acc. Depr. (7,600) Land S330,000 STOCKHOLDER EQUITY 392,400 28,000 $2 Par 120,000 80,000 441,000 Common Stock Total Assets $971,000 Excess of Par Retained Earnings Total Equity $641,000 Total Liability & Equity $971,000 1. Jan. 1- Purchased Equipment for $180000. Super Bowl Inc. paid $10,000 as a down payment and an 8% note signed for the balance of the purchase price. This equipment has a useful life of five years. 2. Jan. 3 - Advertising expense contract was entered into this date but the contract period covered two years. Total cash payment was $30,000. Advertising campaigns for Super Bowls products placed on Facebook sites throughout the two-year period of the contract. 3. Jan. 5-A two-year insurance policy secured for $12,000. A cash payment made and the policy effective period was January 1, 2019 to December 31, 2020. 4. Jan. 31 -January's mortgage payment of $10,000 paid. Rate of interest was at a fixed rate of 10 %. 5. Jan. 31 -Sold on account, various finished goods to customers for $200,000. Terms were 9/60 net 90. Cost of goods sold not accounted for at this date. 6. Feb. 1 - $70,000 of salary paid in cash. 7. Paid the monthly note payment of $10,000 for the note created on January 1, 2019. Feb. 4-A customer returned $8,000 of merchandise; the customer's account was credited for the entire purchase price of $8,000. 8. 9. Super Bowl Inc sold 300,000 shares of common stock at $7 per share. Cash was sent to company's bank account by the investment broker this date. Feb. 12- Purchased $64,000 worth of inventory only $5,000 paid at the time of purchase. 10. Feb 20-Sold additional $200,000 shares of common stock for $12 per 11. share. Feb 28-$10,000 monthly payment made on the note created on Jan. 1 12. 13. Mar. 1 Received full payment for the goods sold on January 31. Mar. 5-Paid in full the amount due for the inventory acquired on February 12. 14. Mar. 10-Sales to customers were $60,000 and terms were 10/30 net 60. Payment was made in cash at this date. 15. Mar. 20 Declared a dividend of 50 cents per share. 16. Mar. 30 End of the year supply inventory was $100. 17. Mar. 30- End of the year merchandise inventory $50,000. 18. was 19. Mar. 30-Income Tax Rate was 20%. 20. Building has a 20-year useful life. Ending Inventory is $10,000 PREPARE THE: Income Statement; Statement of Retained Earnings; Statement of Financial Position [Balance Sheet) for the QUARTER ENDING 3/31/19
*ALSO NEED T CHARTS (debits and credits) for each note
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started