Question
I need help putting all of these transactions in the accounting equation. It needs to be in Excel. Thanks! Available accounts: Cash, Accounts Receivable, Inventory,
I need help putting all of these transactions in the accounting equation. It needs to be in Excel. Thanks!
Available accounts: Cash, Accounts Receivable, Inventory, Truck, Equipment, Land, Building, Accumulated Depreciation, Dividend Payable, Notes Payable, Wages Payable, Common Stock, APIC-Common Stock, Preferred Stock, APIC-Preferred Stock, Retained Earnings, Revenue, Expense, and Net Income
Beg balances as of Dec 31, Year 1 Cash: $1,757,000 Accts. Rec.: $17,500 Inventory: $328,000 Land: $50,000 Building: $250,000 Accumulated Depreciation: $8,333 Acct. Pay: $418,000 Div Pay: $42,000 Wages Pay: $215,000 Common Stock: $200,000 APIC-Cs $600,000 Preferred Stock: $400,000 APIC-PS: $100,000 Retained Earnings: $419,167
For your inventory tracking tab and the events recorded to the accounting equation, you can assume the following:
The company uses FIFO as the method to record/track inventory Beginning inventory for Year 2 of operations is made up of 41,000 units originally purchased at $8.00 per unit which equals Beginning Inventory of $328,000.
1.Paid a $42,000 cash dividend previously declared for stockholders 2. Paid wages payable accrued in previous month 3. Acquired $150,000 by signing a note payable with a local bank 4. Sold 5,000 shares of $5 par Common Stock for $110,000 5. Sold 2,000 shares of $40 par, 3% cumulative preferred stock for $120,000 6. Purchased a Truck and piece of Equipment for $128,000. The truck has a market value of 65,000 and the equipment has a market value of 95,000. 7. Purchased 25,000 Units of Inventory on Account for $8.15 per unit 8. Sold 45,000 units at $24.50 on Account 9. Record COGS for Sale of 45,000 units on Account (from previous event) 10. Collect $570,000 on Account 11. Paid $540,250 of Accounts Payable 12. Purchased 70,000 Units of Inventory on Account for $8.50 per unit 13. Sold 75,000 units at $24.50 on Account 14. Record COGS for Sales of 75,000 units on Account 15. Collect $1,472,500 on Account 16. Paid $438,500 of Accounts Payable 17. Purchased 115,000 Units of Inventory on Account for $9.35 per unit 18. Sold 102,000 units at $24.50 19. Record COGS for Sale of 102,000 units 20. Collect $735,000 on Account 21. Paid $883,150 of Accounts Payable 22. Purchased 175,000 Units of Inventory on Account for $8.75 per unit 23. Paid Sales & Marketing Expenses of $130,000 24. Paid Fixed Operating Expenses of $275,708 25. Paid Wages of $1,235,000 26. Record Wages Payable of $215,000 27. Paid Product Line Research & Development Expenses of $450,000 28. Made the yearly required payment on the note payable. The note carries a 6% interest rate and requires payments of $15,000 plus interest each December 31. (Record Principle & Interest as one entry) 29. Record first year of depreciation expense on truck purchased in Year 2 with salvage value of $12,000 & useful life of 5 Years 30. Record first year of depreciation expense on equipment purchased in Year 2 with salvage value of $36,000 & useful life of 7 Years 31. Record 2nd year of depreciation expense on building purchased in Year 1 with salvage value of $58,000 & useful life of 30 Years 32. Declared a $2.00 per share cash dividend for common stockholders 33. Declared a dividend on preferred shares outstanding
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