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Can you please help me make the T-Charts/ Journal Entries for these problems? Please show your work, thank you! January 1. On January 16, The
Can you please help me make the T-Charts/ Journal Entries for these problems? Please show your work, thank you!
January 1. On January 16, The Board of Directors issued 250,000 additional shares (par of $.25) to raise capital for the New Year. Assume no change in price from Dec 31, 2018 2. Purchased a truck for $240,000 cash on the 1st of January. The truck will be depreciated over a 5-year period. You decide to use the 200% declining-balance depreciation method because it is determined that the truck will be more productive when it is newer. The truck has an estimated salvage value of $22,000. [Adjusting Entry Required) 3. Purchased new office furniture for $93,000 with cash from California Furniture on January 1, 2019. The new furniture will be depreciated over a ten-year period on a straight-line basis. The cabinet has an estimated salvage value of $7,000. [Adjusting Entry Required] 4. On January 1", a 5 year, $128,000 long-term note payable was taken from a local bank. 5. On January 5th you receive payment from interest earned and accrued in 2018. 6. On January 22nd you purchased 8,500 additional units of inventory at a cost of $78.50 per unit. You paid 45% in cash and purchased the remainder on account. 7. On January 25you pay $219,000 cash toward your accounts payable. BALANCE SHEET 2018 2017 December 31, Assets Cash Marketable Securities Accounts Receivable Allowance for Bad Debt Interest Receivable Prepaid Advertising Prepaid Insurance Prepaid Rent Office Supplies Inventory $ 525,710 75,000 455,000 (25,000) 23,676 $ 658,079 15,000 525,000 (105,000) 21,574 139,836 29,050 3,520 975,000 2,201,792 148,945 34,982 5,400 775,000 2,078,980 Current Assets Office Furniture Equipment Accumulated Depreciation Long-Term Notes Receivable Land Patent 5,000,000 5,000,000 (2,000,000) (1,500,000) 285,000 1,450,000 1,450,000 Non-Current Assets 4,735,000 4,950,000 Total Assets $6,936,792 $ 7,028,980 $ 450,000 35,000 $570,000 33,000 Liabilities Accounts Payable Wages Payable Interest Payable Short-Term Notes Payable Deferred Revenue Dividends Payable Bond Interest Payable 155,000 135,000 Current Liabilities 640,000 1,250,000 738,000 1,250,000 Long-Term Notes Payable Bonds Payable Total Liabilities 1,890,000 1,988,000 1,000,000 1,824,406 1,000,000 1,824,406 Stockholders' Equity Common Stock Additional Paid-In Capital Treasury Stock Contributed Capital Retained Earnings 500,000 1,722,386 Total Stockholders' Equity 5,046,792 Total Liabilities & SE $6,936,792 500,000 1,716,574 5,040,980 $ 7,028,980Step by Step Solution
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