Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me quick plss Question 1: (4.5 points) Below appears the Balance Sheet of Jingle Jingle Company as of December 31, 2021. Jingle Jingle Company

image text in transcribed

image text in transcribed

help me quick plss

Question 1: (4.5 points) Below appears the Balance Sheet of Jingle Jingle Company as of December 31, 2021. Jingle Jingle Company - Balance Sheet as of December 31, 2021 (\$) During 2022 the company performed the following operations: 1. January 1st. The company decided to rent a new store located in the centre of the city, in order to boost sales. Therefore they paid in advance $20,000 for rent for the next 15 months. 2. January 24th. The company purchased office supplies for $16,000, paying cash. During 2022 , the company consumed $8,000 of office supplies. 3. February 19b. The company collected all outstanding accounts receivable from the previous year. 4. March 31st. The company borrowed $20,000 in a 12-month, 2% (annual rate) note (loan) payable. The amount borrowed and the interest will be paid to the bank at maturity. 5. April 15th. The company purchased inventory on account at $75,000. 6. May 28th. The company paid legal expenses in cash, $13,000. 7. June 30th. During the first half of the year, the company had sales of $105,000(50% in cash and 50% on credit). 8. September 30th. The company received a $10,000 payment from a customer for services to be performed later. On December 31, 2022, the company had performed 25% of the total service. 9. October 31st. The main company's supplier asked the company for financial aid. Due to that, the company decided to make a cash loan to them for $15,000. The loan repayment shall be carried out 1 year later, together with a 5% interest per annum. 10. December 31st. During the second half of the year, the company had sales (all in cash) of $71,000. 11. December 31st. Total wages expense in 2022 amounted to $50,000. From this amount, $45,000 had been paid by year end. 12. December 31st. The company declared dividends for $4,000 that will be paid next year in May. 13. December 31st. The depreciation for the Property, Plant and Equipment corresponding to 2022 is $5,500. 14. December 31st. The ending balance of inventory on December 31st,2022, was $55,000. The company uses the periodic inventory system. 15. December 31st. The company shall accrue a $4,600 income tax expense on 2022 , to be paid on May 23rd2023. Required: (Solve this exercise on the ANSWER SHEET) a) Prepare the journal entries and general ledger entries corresponding to the year 2022. (Note that some implied adjustments may be needed) (3 points) b) Prepare the Income Statement and the Balance Sheet as of Dec 31st, 2022. (1point) c) Identify inflows and outflows of cash from operating, investing and financing activities. ( 0.5 points ) You may make only one entry for the entire year, if you prefer, instead of monthly or quarterly entries. If you consider that some information is MISSING, please make a guess, explain it, and continue. Remember to enter the "implicit or adjusting" entries, so make the necessary adjustments as of December, 31st,2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts Of Accounting Information Systems

Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman

11th Edition

9780470507025, 0470507020

More Books

Students also viewed these Accounting questions

Question

=+b) What is the best choice using the expected-value approach?

Answered: 1 week ago