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And post to ledger please! Kaylee's Speed Almeters (say it fast) makes aftermarket speedometers that work really well. KSA reported the following Balance Sheet as
And post to ledger please!
Kaylee's Speed Almeters (say it fast) makes aftermarket speedometers that work really well. KSA reported the following Balance Sheet as of 12/31/2018: Balance Sheet as of 12/31/2018 Cash $12,000 Accounts Receivable 3,000 Inventory 5,000 Prepaid Rent 9,000 Current Assets 29,000 Equipment 27,000 Accumulated Depreciation -6,750 Equipment, Net 20,250 Total Assets 49,250 Accounts Payable 8,240 Wages Payable 1,000 Current Liabilities 9.240 Loans Payable 13,000 Total Liabilities 22,240 Common Stock 10,500 Retained Earnings 16,510 Total Shareholders' Equity 27,010 Total Liabilities and 49,250 We now begin the year 2019. The following transactions occurred in 2019. Record JE's a. On January 1, issued a $10,000 face value bond. The bond was sold at par. The bond matures on 12/31/2022 and has a yield of 8%. b. Issued no-par common stock in exchange for a machine worth $5,200. C. Collected $3,000 from customers for services to be delivered in a future period. d. On January 13, paid employees $14,000 for two weeks of wages. This cash payment included payment for wage expenses incurred in 2018. e. Declared a cash dividend totaling $4,200. f. Sold speedometers to customers for $8,500 cash. The cost of the inventory sold was $4,000. g. Paid the cash dividend of $4,200. Invested excess cash of $3,000 into long term investments. i. Performed services for customers totaling $40,000, of which $15,000 was on credit and the rest was for cash. j. Purchased inventory of $2,500 on credit. k. Paid $1,900 to suppliers for inventory previously purchased on account. 1. On 12/31/2019, paid the coupon on the bond issued in (a)Step by Step Solution
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