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Balance sheet accounts are provided in the table below. These are balances as of June 3 0 , 2 0 2 4 . * The
Balance sheet accounts are provided in the table below. These are balances as of June The debits and credits do not equalbalance because the net income earned so far this year $ has not yet been included in retained earnings. This amount will show up as part of the net income when you prepare the financial statements.
tableAccountDebit,CreditCashTrading Securities,AvailableforSale Securities,Fair Value AdjustmentAFS,,Accounts Receivable,Receivable from Employee,InventoriesAssets HeldforSale,Cash Value of Insurance,EquipmentAccumulated DepreciationEquipment,,BuildingAccumulated DepreciationBuilding,,LandGoodwillAccounts Payable,,Interest Payable,,Salaries Payable,,Taxes Payable,,Current Portion of Note,,Note Payable noncurrent portion of noteMortgage Liability,,Common Stock,,Retained Earnings,,Accumulated Other Comprehensive IncomeLoss$$
The following information relates to the revenues earned and expenses incurred during the first half of
tableDebit,CreditSales$Sales Returns and Allowances,Sales Discounts,Cost of Goods Sold,Selling Expenses,General and Administrative Expenses,
Transactions occurring in but not considered in the current net income of are as
follows:
On July st the corporation entered into a lease agreement for a machine that qualifies as
a capital lease. The lease calls for annual lease payments of $ over a sixyear lease
term, with the first payment at July the lease's inception. The interest rate is
Round your answer to the nearest whole dollar
On July the corporation sold a $year bond with a stated rate of The
effective yield on the bonds is Interest on the bond is paid semiannually on January
and July The company uses the effectiveinterest method to amortize any bond
discount or premium. Round your answer to the nearest whole dollar
On September the company sold its shares in Hobokin Company, resulting in a loss
of $pretax See the portfolio tables below.
When its president died, on October the corporation realized $ from an
insurance policy. The cash surrender value of this policy had been carried on the books as
an investment in the amount of $the gain is nontaxable
On November st TriStar, Inc. filed a suit against the corporation, seeking damages for
patent infringement. Legal counsel believes that it is probable that the company will lose
the lawsuit to TriStar and it is reasonably estimable that the corporation will have to pay
TriStar $
On November the corporation disposed of its wholesale division at a loss of $
before taxes. The wholesale operations were shut down at the beginning of the year. This
transaction meets the criteria for discontinued operations. The assets associated with this
sale are being classified as Assets HeldForSale.
The corporation decided to change its method of inventory pricing from average cost to
the FIFO method. The effect of this change on prior years is to increase income by
$ and decrease income by $ before taxes. The FIFO method has been
used for The tax rate on these items is
On December the corporation purchased shares of its own common stock at
$ a share.
On December the corporation paid off the current portion of the note payable along
with the $ in interest that had been accrued.
December st interest on the lease has accrued.
December interest on the bonds has accrued.
The company's products carry a oneyear warranty against manufacturer's defects.
Warranty costs are expected to be of net sales.
At the beginning of the corporation purchased a piece of equipment for $
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