C1-1 Financial Reporting of Depreciation, Write-off, Bond Issuance and Common Stock Issuance, Purchase, Reissuance, and Cash Dividends (Chapters 4, 8, 9,10, and 11) [LO 4-2, 4-5, 8-2, 9-3,10-3, 11-2, 11-3] American Laser, Inc., reported the following account balances on January 1 Debit Credit $ 5,000 Accounts Receivable $ 30,000 98,000 2,000 Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury S tock 255,000 12,000 10,000 12,000 120,000 0 $272,000 $272,000 TOTALS The company entered into the following transactions during the year. 15 Issued 9,000 shares of $1 par common stock for $58,000 cash 31 Collected $3,000 from customers on account . Jan Jan Feb Mar 15 Reacquired 3,080 shares of $1 par common stock into treasury for $33,880 cash 15 Reissued 2,080 shares of treasury stock for $24,880 cash 15 Reissued 600 shares of treasury stock for $4,600 cash Aug Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock Oct. Oct. Dec. Dec. Dec. 1 Issued 100, 10-year, $i,010 bonds, at a quoted bond price of 101 3 Wrote off a $2,000 balance due from a customer who went bankrupt 29 Recorded $238,000 of service revenue, all of which was collected in cash 30 Paid $208,000 cash for this year's wages through December 31. Ignore payroll taxes and payroll deductions 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) General Balance Sheet Debt to Assets Ratio General Trial Balance Requirement Journal Ledger Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field .) View transaction list first account field.) View transaction list Journal entry worksheet 10 13 6 7 8 11 12 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Record the transaction Note: Enter debits before credits. Debit Credit Date General Journal Dividends Sep 15 18,600 Dividends Payable 18,600 Record entry Clear entry View general journal General Ledger> Requirement Dec Dec 30 Paid S208,000 cash for this year's wages through December 31. Ignore payroll taxes and payroll deductions 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) General Balance General Debt to Requirement Trial Balance Journal Ledger Sheet Assets Ratio Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Requirement D--.. hlauk 4C Journal entry worksheet 12 6 8 10 11 13 Prepare the closing entry for Dividends. Record the transaction Note: Enter debits before credits. Date General Journal Debit Credit Retained Earnings Dec 31 Dividends Record entry Clear entry View general journal General Ledger> Requirement Use the dropdowns to select the accounts properly included on the classified balance sheet. How enter the amount of Retained earnings. At the end of the year, the adjusted net income was $20 AMERICAN LASER, INC Classified Balance Sheet At December 31 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 0 0 00 $ The company entered into the following transactions during the year. 15 Issued 9,000 shares of $1 par common stock for $58,000 cash 31 Collected $3,000 from customers on account. 15 Reacquired 3,080 shares of $1 par common stock into treasury for $33,880 cash. 15 Reissued 2,080 shares of treasury stock for $24, 880 cash. 15 Reissued 600 shares of treasury stock for $4,600 cash Jan Jan Feb Mar Aug Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. 1 Issued 100, 10-year, $1,010 bonds, at a quoted bond price of 101. 3 Wrote off a $2,000 balance due from a customer who went bankrupt 29 Recorded $238,000 of service revenue, all of which was collected in cash. 30 Paid $208,000 cash for this year's wages through December 31. Ignore payroll taxes and payroll deductions. 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) Oct Oct Dec Dec Dec General Balance Debt to General Trial Balance Requirement Journal Ledger Sheet Assets Ratio Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio. Calculate the debt-to-assets ratio at January 1 and December 31. (Round your answer to 2 decimal places.) Debt to Assets Ratio Does the company rely more (or less) on debt financing at the end of the year than at the beginning of the year? OMore Less KBalance Sheet Debt to Assets Ratio