Intro to Accounting 201 Extra Credit 3. Im desperate!

Name: TA: Disc #:- BUS ADM 201 Introduction to Financial Accounting Spring 2018 EXTRA CREDIT III Due at 11:59 on Saturday, May 12th GRADING: Worth up to 15 points. Carefully READ the requirements on page 2 first. Partially completed problems will earn no credit-that means all requirements must be FULLY completed. All work must be completed by hand. If you complete all items as requested, you will earn at least 7.5 points. The remaining points are dependent upon the accuracy of your answers. Round amounts to the nearest dollar, if applicable. Jamukha Corporation prepares annual financial statements. The balance sheet at December 31, 2016, is presented below. Jamukha Corporation Balance Sheet December 31, 2016 Assets Liabilities and Stockholders' Equity 52,900 10,000 Cash Accounts receivable Allowance for doubtful accounts 22,500 28,000 Accounts payable Common stock ($1 par) Paid-in capital in excess of par- (350) Common stock 55,000 Retained earnings 90,000 76,750 Prepaid insurance Equipment A/D - Equipment 4,500 230,000 229,650 229.650 During 2017 the following transactions occurred 1. Purchased $176,000 inventory on account. Jamukha Corp. uses a perpetual inventory system. 2. Sales of $335,000, plus 5.6% sales tax, were made to customers on account. Cost of goods sold was $194,500 3. Received $26,000 cash down payment for orders that will be shipped next year 4. Issued 12 year, $80,000 face value, 4% bonds on July 1 at 102. The bonds were sold to yield an effective annual rate of 3.79101%, and they pay interest every January 1 and July 1 . 5. 6. 7. 8. 9. Collected $245,000 on account. Paid general expenses of $41,250. Paid $220,750 on account. Paid the sales tax collected from customers to the State of Wisconsin. On January 1, Jamukha Corp. sold for $9,000 cash equipment which originally cost $65,000. Accumulated depreciation for this equipment as of December 31, 2016, was $50,000. This transaction is exempt from sales tax. Name: TA: Disc #:- BUS ADM 201 Introduction to Financial Accounting Spring 2018 EXTRA CREDIT III Due at 11:59 on Saturday, May 12th GRADING: Worth up to 15 points. Carefully READ the requirements on page 2 first. Partially completed problems will earn no credit-that means all requirements must be FULLY completed. All work must be completed by hand. If you complete all items as requested, you will earn at least 7.5 points. The remaining points are dependent upon the accuracy of your answers. Round amounts to the nearest dollar, if applicable. Jamukha Corporation prepares annual financial statements. The balance sheet at December 31, 2016, is presented below. Jamukha Corporation Balance Sheet December 31, 2016 Assets Liabilities and Stockholders' Equity 52,900 10,000 Cash Accounts receivable Allowance for doubtful accounts 22,500 28,000 Accounts payable Common stock ($1 par) Paid-in capital in excess of par- (350) Common stock 55,000 Retained earnings 90,000 76,750 Prepaid insurance Equipment A/D - Equipment 4,500 230,000 229,650 229.650 During 2017 the following transactions occurred 1. Purchased $176,000 inventory on account. Jamukha Corp. uses a perpetual inventory system. 2. Sales of $335,000, plus 5.6% sales tax, were made to customers on account. Cost of goods sold was $194,500 3. Received $26,000 cash down payment for orders that will be shipped next year 4. Issued 12 year, $80,000 face value, 4% bonds on July 1 at 102. The bonds were sold to yield an effective annual rate of 3.79101%, and they pay interest every January 1 and July 1 . 5. 6. 7. 8. 9. Collected $245,000 on account. Paid general expenses of $41,250. Paid $220,750 on account. Paid the sales tax collected from customers to the State of Wisconsin. On January 1, Jamukha Corp. sold for $9,000 cash equipment which originally cost $65,000. Accumulated depreciation for this equipment as of December 31, 2016, was $50,000. This transaction is exempt from sales tax