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Financial statement help needed. I am having a very hard time with them and would really appreciate some help. Thank you! Milo Corporation's unadjusted trial
Financial statement help needed. I am having a very hard time with them and would really appreciate some help. Thank you!
Milo Corporation's unadjusted trial balance at December 1, 2017, is presented below. Debit Cash Credit $22,000 Accounts Receivable 36,800 Notes Receivable 10,000 Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patent 0 36,200 3,600 20,000 150,000 60,000 9,000 Allowance for Doubtful Accounts $500 Accumulated DepreciationBuildings 50,000 Accumulated DepreciationEquipment 24,000 Accounts Payable 27,300 Salaries and Wages Payable 0 Notes Payable (due April 30, 2018) 11,000 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2023) 35,000 Common Stock 50,000 Retained Earnings 63,600 Dividends 12,000 Sales Revenue 900,000 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 630,000 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 61,800 0 110,000 $1,161,400 $1,161,400 The following transactions occurred during December. Dec. 2 2 15 23 Purchased equipment for $16,000, plus sales taxes of $800 (paid in cash). Milo sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2017, was $1,800; 2017 depreciation prior to the sale of equipment was $825. Milo sold for $5,000 on account inventory that cost $3,500. Salaries and wages of $6,600 were paid. Adjustment data: 1. 2. 3. 4. 5. 6. 7. 8. 9. 1 0 Milo estimates that uncollectible accounts receivable at year-end are $4,000. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2017. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. Unpaid salaries at December 31, 2017, total $2,200. Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. Income tax expense was $15,000. It was unpaid at December 31Step by Step Solution
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