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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

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Balance sheet accounts are provided in the table below. These are balances as of June 30,2024.*The debits and credits do not equal/balance because the net income earned so far this year ($81,000) 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.
\table[[Account,Debit,Credit],[Cash,100,000,],[Trading Securities,50,000,],[Available-for-Sale Securities,50,000,],[Fair Value Adjustment-AFS,,5,000],[Accounts Receivable,75,000,],[Receivable from Employee,10,000,],[Inventories,200,000,],[Assets Held-for-Sale,25,000,],[Cash Value of Insurance,10,000,],[Equipment,54,000,],[Accumulated Depreciation-Equipment,,16,500],[Building,96,000,],[Accumulated Depreciation-Building,,32,000],[Land,25,000,],[Goodwill,275,000,],[Accounts Payable,,80,000],[Interest Payable,,15,000],[Salaries Payable,,10,000],[Taxes Payable,,3,000],[Current Portion of Note,,40,000],[Note Payable (noncurrent portion of note),,190,000],[Mortgage Liability,,110,000],[Common Stock,,300,000],[Retained Earnings,,92,500],[Accumulated Other Comprehensive Income/Loss,5,000_,],[$975,000,$894,000]]
The following information relates to the revenues earned and expenses incurred during the first half of 2024.
\table[[,Debit,Credit],[Sales,,$1,911,500],[Sales Returns and Allowances,100,000,],[Sales Discounts,22,500,],[Cost of Goods Sold,1,240,000,],[Selling Expenses,250,000,],[General and Administrative Expenses,220,000,]]
Transactions occurring in 2024 but not considered in the current net income of 81,000 are as
follows:
On July 1st, the corporation entered into a lease agreement for a machine that qualifies as
a capital lease. The lease calls for annual lease payments of $26,269 over a six-year lease
term, with the first payment at July 1st, the lease's inception. The interest rate is 5%.
*(Round your answer to the nearest whole dollar).
On July 1st, the corporation sold a $15,000,5-year bond with a stated rate of 8%. The
effective yield on the bonds is 10%. Interest on the bond is paid semiannually on January
1st and July 1sts. The company uses the effective-interest method to amortize any bond
discount or premium. *(Round your answer to the nearest whole dollar).
On September 20th, the company sold its shares in Hobokin Company, resulting in a loss
of $1,000(pretax). See the portfolio tables below.
When its president died, on October 8th, the corporation realized $110,000 from an
insurance policy. The cash surrender value of this policy had been carried on the books as
an investment in the amount of $10,000(the gain is nontaxable).
On November 1 st, Tri-Star, 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 Tri-Star and it is reasonably estimable that the corporation will have to pay
Tri-Star $10,000.
On November 15th, the corporation disposed of its wholesale division at a loss of $5,000
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 Held-For-Sale.
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 2022 income by
$60,000 and decrease 2023 income by $20,000 before taxes. The FIFO method has been
used for 2024. The tax rate on these items is 35%.
On December 18th, the corporation purchased 2,000 shares of its own common stock at
$20 a share.
On December 20th, the corporation paid off the current portion of the note payable along
with the $15,000 in interest that had been accrued.
December 31 st, interest on the lease has accrued.
December 31stt, interest on the bonds has accrued.
The company's products carry a one-year warranty against manufacturer's defects.
Warranty costs are expected to be 1% of net sales.
At the beginning of 2023, the corporation purchased a piece of equipment for $54
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