BUS ADM 201 Introduction to Financial Accounting Fall 2017 EXTRA CREDIT III Due at midnight on Saturday, December 16th GRADING: Worth up to 15 points. Carefully READ the requirements on page 2 first. Partially completed problems will earn no credit -that means all requirements must be FULLY completed. All work must be completed by hand. If you complete all items as requested, you will earn at least 7.5 points. The remaining points are dependent upon the accuracy of your answers. Round amounts to the nearest dollar, if applicable Jamukha Corporation prepares annual financial statements. The balance sheet at December 31, 2016, is presented below Jamukha Corporation Balance Sheet December 31, 2016 SSe Liabiliti 10 ul Cash Accounts receivable Allowance for doubtful accounts Inventorv Prepaid insurance Equipment AD - Equipment 16,700Accounts payable 31,000Common stock (SI par) 43,900 10,000 Paid-in capital in excess of par - Common (350)stock 44,000 Retained earnings 90,000 51,050 3,600 210,000 (110,000) 194,950 194,950 During 2017 the following transactions occurred 1. Purchased $188,000 inventory on account. Jamukha Corp. uses a perpetual inventory system. 2. Sales of $320,000, plus 5.6% sales tax, were made to customers on account. Cost of goods sold was 3. Received $20,000 cash down payment for orders that will be shipped next year 4. Issued 12 year, $65,000 face value. 3% bonds on July 1 at 104. The bonds were sold to yield an effective $187,500 annual rate of 2.6096%, and they pay interest every January 1 and July 1 5. Collected $210,000 on account 6. Paid general expenses of $44,000 7. Paid $90,900 on account 8. Paid the sales tax collected from customers to the State of Wisconsin 9. On January 1, Jamukha Corp. sold for S7,500 cash equipment which originally cost S75,000. Accumulated depreciation for this equipment as of December 31, 2016, was $54,000. This transaction is exempt from