Below is a balance sheet for Rick, Frank and Stan Co as of December 31, 2019 Rick, Frank and Stan Co Balance Sheet As of December 31, 2019 (000s) Assets Liabilities and Equities Cash $ 87 0 Accounts Payable $150 0 Accounts Rec 154 0 Wages Payable 36 0 Inventories 203 0 Interest Payable 12 0 Prepaid Rent 25 0 Other Accrued Liabilities 64 0 Total Current Assets $ 469 0 Total Current Liabilities $ 262 0 Mortgage Payable 325 0 Property, Plant Equipment $700 0 Total Liabilities $ 587 0 Accumulated Depreciation (280 0) Property, Plant Equip , net $ 420 0 Common Stock $ 20 0 Land 170 0 APIC 200 0 Other Assets 35 0 Retained Earnings 287 0 Total Non current Assets $ 625 0 Shareholders' Equity $ 507 0 Total Assets $1,094 0 Total Liabilities Shareholders' Equity $1,094 0 The following information pertains to 2019 Prepare all necessary journal entries a Sales were $2,100,000, 70 on account and 30 cash sales b Collections on accounts receivable were $1,550,000 c On January 1, 2019, Rick, Frank and Stan sold a building for $77,000 cash The building originally cost $200,000 and had accumulated depreciation of $120,000 d Rick, Frank and Stan calculate depreciation expense using the straight line method and an asset life of five years for Property, Plant Equipment e The mortgage has an interest rate of 5 percent f Dividends declared and paid $75,000 g Cash paid for wages was $220,000, including wages accrued in the previous year h Total wage expense for 2019 was $230,000, including what was paid in transaction g i Cash payments for selling, general, and administrative expenses $95,000 These payments are in addition to any SG A expenses that are derived from prepaids or liability accounts j Interest paid was $30,000, including interest accrued in the previous year k Purchases were $1,520,000, all on account (The company using the perpetual inventory system ) l A physical count of inventory found $224,000 on hand at December 31, 2019 Please record cost of goods sold for the year m Payments on accounts payable were $1,460,000 n Additions to prepaid rent $60,000 o The balance of prepaid rent at December 31, 2017 was $30,000 p The beginning balance of other accrued liabilities was paid off in cash Other accrued liabilities at the end of the year, all relating to miscellaneous expenses, amounted to $55,000

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Below is a balance sheet for Rick, Frank and Stan Co. as of December 31, 2019:

Rick, Frank and Stan Co. Balance Sheet As of December 31, 2019 (000s)
Assets			Liabilities and Equities
Cash	$ 87.0		Accounts Payable	$150.0
Accounts Rec.	154.0		Wages Payable	36.0
Inventories	203.0		Interest Payable	12.0
Prepaid Rent	25.0		Other Accrued Liabilities	64.0
Total Current Assets:		$ 469.0	Total Current Liabilities:		$ 262.0
			Mortgage Payable		325.0
Property, Plant & Equipment	$700.0		Total Liabilities:		$ 587.0
Accumulated Depreciation	(280.0)
Property, Plant & Equip., net		$ 420.0	Common Stock	$ 20.0
Land		170.0	APIC	200.0
Other Assets		35.0	Retained Earnings	287.0
Total Non-current Assets:		$ 625.0	Shareholders' Equity:		$ 507.0
Total Assets		$1,094.0	Total Liabilities & Shareholders' Equity		$1,094.0

The following information pertains to 2019. Prepare all necessary journal entries:

a.	Sales were $2,100,000, 70% on account and 30% cash sales.
b.	Collections on accounts receivable were $1,550,000.
c.	On January 1, 2019, Rick, Frank and Stan sold a building for $77,000 cash. The building originally cost $200,000 and had accumulated depreciation of $120,000.
d.	Rick, Frank and Stan calculate depreciation expense using the straight-line method and an asset life of five years for Property, Plant & Equipment.
e.	The mortgage has an interest rate of 5 percent.
f.	Dividends declared and paid: $75,000.
g.	Cash paid for wages was $220,000, including wages accrued in the previous year.
h.	Total wage expense for 2019 was $230,000, including what was paid in transaction g.
i.	Cash payments for selling, general, and administrative expenses: $95,000. These payments are in addition to any SG&A expenses that are derived from prepaids or liability accounts.
j.	Interest paid was $30,000, including interest accrued in the previous year.
k.	Purchases were $1,520,000, all on account. (The company using the perpetual inventory system.)
l.	A physical count of inventory found $224,000 on hand at December 31, 2019. Please record cost of goods sold for the year.
m.	Payments on accounts payable were $1,460,000.
n.	Additions to prepaid rent: $60,000.
o.	The balance of prepaid rent at December 31, 2017 was $30,000.
p.	The beginning balance of "other accrued liabilities" was paid off in cash. Other accrued liabilities at the end of the year, all relating to miscellaneous expenses, amounted to $55,000.