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Can you do problems 2 please Tesla sells cars, and for eligible vehicles, they offer a Full Self-Driving (FSD) subscription that provides drivers with access
Can you do problems 2 please
Tesla sells cars, and for eligible vehicles, they offer a Full Self-Driving (FSD) subscription that provides drivers with access to advanced driver assistance features. The price of the car is $40,000, and the FSD subscription is available for $300 per month, with a one-year commitment, resulting in an annual cost of $3,600 for subscribers. Additionally, Tesla offers a promotional package that includes both the car and a one-year FSD subscription. The car in this package is priced at $38,000, and the subscription is available for $250 per month. When combined, the total package price amounts to $41,000. The cost of inventory of a car is $25,000 and the cost of providing membership service is $100 per member per month. The followings are transactions in 2023: 1-Jan) Purchased an equipment for $100,000 in cash. It has useful life 10 years and a residual value of $5,000. It will be depreciated at the same rate (straight-line method) over the useful life. 15-Feb) Paid off account payable from last year. 1-Mar) Purchased $500,000 inventory on account. 1-May) Issued 30,000 shares of common stock for $600,000. 1-Jul) Borrowed $200,000 from a bank with an 8% annual interest due every June 30 . 1-Aug) Repurchased 15,000 shares of common stocks at $450,000 and held as treasury stocks. 1-Oct) Sold 50 FSD subscriptions (non-cancellable for one year). Subscription fee will be charged at the end of each month for a year. 1-Nov Sold 80 cars on account. A half of the cars were delivered immediately, and delivery for the rest was delayed till Feb 2024. 1-Dec Sold 100 FSD packages. Car price was paid in cash and cars were delivered immediately. Subscription fee will be charged at the end of each month for a year. 31-Dec Made necessary adjusting entries and closing entry. 1a) Make journal entries for 2023. 1b) Prepare a summary table of sales revenue, cost of goods sold, and cost of service for Oct-Dec, 2023. 2a) Prepare the balance sheet for 2023 . 2b) Prepare Statement of Cash Flows for 2023 using the indirect method for Cash flow from operation. 2c) Calculate the basic EPS for 2023Step by Step Solution
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