CALCULATOR PRINTER VERSION BACK NEXT Comprehensive Accounting Cycle Review 10 (Part Level Submission) Almes Corporation's balance sheet at December 31, 2016, is presented below. Cash Inventory Prepaid Insurance Equipment AIMES CORPORATION Balance Sheet December 31, 2016 $30,000 Accounts payable 30,750 Interest payable 5,600 Bands payable 38,000 Common stock Retained earnings $104 350 $13,750 2,500 50,000 25,000 $13,100 $104,350 During 2017, the following transactions occurred. Almes uses a perpetual inventory system. 1. Ai mes paid $2,500 interest on the bonds on January 1, 2017. 2. Ai mes purchased $241,100 of inventory on account. 3. Al mes sold for $480,000 cash inventory which cost $265,000. Almes also collected $28,800 sales taxes. 4. Ames paid $230,000 on accounts payable. 5. Ai mes paid $2,500 interest on the bonds on July 1, 2017. 6. The prepaid insurance ($5,600) expired on July 31. 7. On August 1, Aimes paid $10,200 for insurance coverage from August 1, 2017, through July 31, 2018. 8. Almes paid $17,000 sales taxes to the state. 9. Paid other operating expenses, $91,000. 10. Redeemed the bonds on December 31, 2017, by paying $48,000 plus $2,500 Interest. 11. Issued $90,000 of 8% bonds on December 31, 2017, at 103. The bonds pay interest every June 30 and December 31, Adjustment data: 12. 13. 14. Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2016, and will be depreciated on a straight-line basis over 5 years with a $3,000 salvage value. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount.) y (a)