Question
Enter the (impact of the) following transactions in the Excel worksheet. 1. The company purchased $7,500,000 of raw material inventory on account. 2. During the
Enter the (impact of the) following transactions in the Excel worksheet.
1. The company purchased $7,500,000 of raw material inventory on account.
2. During the year, the company incurred $6,000,000 of factory wages. When wages relate to the production of a company's inventory, the wage costs are added to the inventory account. For now, assume that the wages have not yet been paid.
3. The company sold inventory that cost $14,000,000 for a total of $22,000,000. Of that, $17,000,000 was received in cash and $5,000,000 was on account.
4. The company paid $8,200,000 to suppliers for inventory it had previously purchased on account.
5. The company collected $4,100,000 of accounts receivable.
6. The company incurred sales and marketing expenses of $1,505,431, general and administrative expenses of $2,044,569, and retail operating expenses of $1,750,000. They paid $2,000,000 in cash and $3,300,000 was added to other accrued expenses.
7. The company paid $6,423,789 to employees for wages that had been previously accrued.
8. Rocky Mountain Chocolate Factory received $125,000 in cash from new franchisees. The company must provide services to the franchisees over the next five years. As such, the fees are considered deferred income.
9. The company paid $498,832 for new property and equipment.
10. During the year, the company declared $2,407,167 of dividends on its common shares. They paid $2,403,458 during the fiscal year. The difference, $3,709, will be paid in the following fiscal year.
11. Many other transactions were recorded during the year. They are summarized in the spreadsheet in Column O. Take these as given and do not attempt to interpret individual entries as many involve offsetting debits and credits and the resulting values are net figures.
Cash and cash equivalents Deferred income taxes Property and Equipment, Net Notes receivable, less current portion Accrued salaries and wages Other accrued expenses 8 Deferred income taxes Franchise and royalty fees Depreciation and amortizationStep by Step Solution
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