Buddy Corporation is a year-round Christmas decoration boutique.The controller of the company, has provided you with the first quarter balance sheet and a list of events that occurred in April 2016.

Use the provided information to prepare

1.A general journal list of journal entries

2.A set of T-account postings

3.A classified balance sheet

4.A single-step income statement (all revenues reported together and before all expenses)

5.A statement of cash flows

6.A statement of retained earnings

Round to the nearest dollar on all calculations before doing the journal entries.All financial reports and journal entries should be properly formatted (use provided account titles or information from the transaction description to determine appropriate account names).

Check Figure:Total Assets on April 30, 2016 should be $969,930.Ending Retained Earnings is $290,581.

Buddy Corporation

Balance Sheet

March 31, 2016

Current Assets

Current Liabilities

Cash

$ 64,720

Accounts Payable

$ 123,543

Prepaid Expenses

1,250

Salaries Payable

16,230

Accounts Receivable

97,080

Total Current Liabilities

139,773

Inventory

116,496

Long-Term Debt

Total Current Assets

$279,546

Total Liabilities

$139,773

Non Current Assets

Stockholder's Equity

Equipment

$25,000

Common Stock (90,000 shares)

$125,000

Furniture and Fixtures

210,000

Additional Paid-In Capital

$50,000

Building

420,000

Preferred Stock, cumulative, 2% (2,400 shares)

$180,000

Accumulated Depreciation

(272,000)

Additional Paid-In Capital

120,000

Land

105,000

Retained Earnings

152,773

Total Non Current Assets

488,000

Total Stockholder's Equity

$627,773

Total Assets

$767,546

Total Liabilities & Stockholders' Equity

$767,546

Additionalinformation:Equipment consists of computerspurchasedtwo years ago.At the time of purchase, the computers had an estimated salvage of $1,000 and useful life of three years.Furniture and fixtures were purchased 10 years ago and had an estimated salvage of 10% of the original cost and estimated useful life of 15 years.The building and land also were purchased 10 years when the building had an estimated useful life of 30 years and estimated salvage value of $30,000.

Buddy Corporation is a year-round Christmas decoration boutique.The controller of the company, has provided you with the first quarter balance sheet and a list of events that occurred in April 2016.

April 1

Did an IPO of 40,000 shares of $1.25 par value common stock.The shares sold for $2.25 a share.

April 8

Recorded the sales made during the first week of the month.Total sales were $105,710.The merchandise sold originally cost $48,050.Of the total sales 45% were for cash and the remainder were made on account.

April 9

Paid two weeks of salaries, earned through April 7.

April 11

Paid suppliers for amounts owed for services provided and goods purchased last month.

April 12

Received delivery of merchandise purchased on credit.Invoices for the goods totaled $93,197.The terms of the purchase agreement are 2, 15 net 30.(The prompt payment discount is 2% on invoices paid within 15days. Payment in full is due in 30 days.)

April 14

Received payments from customers totaling 65% of the total amount owed.The company does not offer its customers a sales discount.

April 15

Recorded the sales made during the second week of the month.Total sales were $113,280.The merchandise sold originally cost $51,490.Of the sales 55% were made on credit.

April 16

Paid a $15,000 annual premium for a liability insurance contract.Insurance coverage begins May 1.

April 17

Ordered $105,750 of merchandise from a supplier and agreed to make payment within 30 days.

April 17

Received utility bill for $6,550.Paid $5,460.The remainder will be paid next month.

April 18

Collected $116,340 from customers who made purchases on credit.

April 22

Recorded the sales made during the third week of the month.Total sales were $104,570.The merchandise sold originally cost $47,530.Of the sales 45% were made in cash.

April 23

Paid $32,460 of salaries earned by employees.

April 26

Paid $55,920 of invoices for the merchandise received on April 12. The invoices were paid in time to take the 2% prompt payment discount.The company treats purchase discounts as a reduction in the acquisition cost of the merchandise.

April 29

Recorded the sales made during the fourth week of the month.Total sales were $130,700.The original cost of the merchandise was $59,410.Sales on credit totaled $71,880.

April 29

Purchased new shelving for a warehouse.The list price of the shelves was $32,000.The company made a down payment of $4,500 and signed a 3-year, 4% loan with the furniture company for $25,000.The company also paid $1,500 for delivery and installation of the shelves.The shelves are expected to have a salvage value of $1,000 and a useful life of 20 years.

April 30

Employees earned one week of salaries that remain unpaid.

April 30

The previous fire insurance policy expires after the final month of coverage.

April 30

Recorded monthly depreciation on fixed assets.

April 30

Calculated and recorded a 20% income tax on income earned this month.Recorded the taxes owed.