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CAPTAIN JET INC. BALANCE SHEET DECEMBER 31, 2017 Current Assets Cash 41,200 Notes Receivable 16,000 Accounts Receivable 38,800 Inventories 40,000 Prepaid Insurance 540 Prepaid Rent
CAPTAIN JET INC. | |
BALANCE SHEET | |
DECEMBER 31, 2017 | |
Current Assets | |
Cash | 41,200 |
Notes Receivable | 16,000 |
Accounts Receivable | 38,800 |
Inventories | 40,000 |
Prepaid Insurance | 540 |
Prepaid Rent | 500 |
Total Current Assets | 137,040 |
Non-Current Assets | |
Long-term Investments | |
Investments in held-for-maturity securities | 52,000 |
Land held for future development | 44,500 |
Property, Plant, and Equipment | |
Land | 85,000 |
Buildings | 291,000 |
Less: Accumulated Depreciation | (187,500) |
Intangible Assets | |
Capitalized Development Costs | 8,000 |
Goodwill | 76,000 |
Other Identifiable Intangible Assets | 48,000 |
Total Non-Current Assets | 417,000 |
Total Assets | 554,040 |
Current Liabilities | |
Notes Payable | 110,000 |
Accounts Payable | 33,500 |
Unearned Revenues | 12,000 |
Income Taxes Payable | 8,440 |
Property Taxes Payable | 6,600 |
Interest Payable | 1,500 |
Total Current Liabilities | 172,040 |
Non-Current Liabilities | |
Provisions Related to Pensions | 0 |
Bonds Payable | 0 |
Total Non-Current Liabilities | 0 |
Total Liabilities | 172,040 |
Stockholders' Equity | |
Common Stock | 200,000 |
Paid-in-capital - Common Stock | 37,500 |
Retained Earnings | 152,250 |
Accumulated Other Comprehensive Income | 5,000 |
Less: Treasury Stock | (12,750) |
Total Stockholders' Equity | 382,000 |
Total Liabilities and Stockholders' Equity | 554,040 |
transactions:
The 2017 balance sheet of the Captain Jet Inc. is attached. During 2018, the following events occurred. | |
1. On January 10, sell merchandise on account to Rayms $9,600 and Fischer $8,800. | |
2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. | |
3. On January 13, Receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account. | |
4. On January 15, send checks to Joosten for 9,000 and to Maida for $11,000 for merchandise purchased last year. | |
5. On January 16, issue credit of $400 to Fieber for merchandise returned. Hint: you need to create a "sales returns" account, which is a contra account for "sales revenue" on the income statement; meanwhile reduce accounts receivable. Inventory and COGS need to be adjusted accordingly as well. | |
6. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12. | |
7. Summary monthly cash sales (for January) total $15,500. | |
8. On Feburary 9, receive payment in full from Rayms and Fischer. | |
9. On March 1, pay rent of $6,000 for a two-year term, effective on the day of purchase. | |
10. On April 1, sell merchandise on account to Dunlap $1,600. | |
11. On May 1, pay $400 cash for office supplies. All supplies are expensed right away. | |
12. Cash dividends totaling $800 are declared and paid on June 13. | |
13. On July 1, wrote a note to bank and borrowed $120,000 (one year, annual interest rate 3%) . | |
14. On July 5, purchase merchandise from Maida for $33,000 on account | |
15. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000. | |
16. On July 8, return $200 of merchandise to Maida and receive credit. | |
17. On August 1, sell merchandise to Lachey on account for $26,000. | |
18. On August 5, Pay off the balance to Maida. | |
19. On August 10, receive half of the payment from Lachey. | |
20. On August 14, expect $1,300 bad debt from Tooket and directly write it off from accounts receivable.(Hint: you need to record "bad debt expense" and reduce accounts receivable) | |
21. On August 30, Pay utitlities expense, $10,902. | |
Additional Information at the end of the year: | |
1. Depreciation expense for the year was $14,250. | |
2. The company estimated that it has to pay federal income tax, $290. | |
3. The company adopts the perpetual inventory system and cost of goods sold is half of the selling price before discount. | |
4. On December 31, An unpaid utilities bill (December, $1,250) is due on January 10 next year. | |
Instructions: | |
1. Prepare journal entries for each event (in sheet "JE"). | |
2. Prepare adjusting entries (in sheet "JE"). | |
3. Prepare adjusted trial balance (in sheet "adj.TB"). | |
4. Prepare Income Statement, Retained Earnings Statement and Balance Sheet (in sheet "FSs"). | |
5. Prepare closing entries (in sheet "Closing"). | |
please help me complete Adj. trial balance/FS/Closing
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