Iron Man Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2022, the following were the account balances of Iron Man Corporation: Cash Accounts Receivable Inventory (637.5 units) Van Furniture & Fixtures Total Debits Debits 60750 22500 127500 48000 13500 Credits Allowance for Doubtful Accounts 2250 Accumulated Depreciation (Van) 45000 Accumulated Depreciation (Furniture & Fixtures 3000 Accounts Payable 12000 Common Shares 15000 Retained Earnings 195000 Total Credits 272250 272250 During May 2022, the following transactions took place: May 1: Bought 210 desktop printers for $285 each on account. May 1: Bought a van, paying S15000 cash as a down payment and signed a 10 month S60000,9% note payable for the balance. The company paid $1200 to have its company logo painted on the side of the van. The residual value is $12000. The old van was sold for $8250: it cost $48000 and acculumated depreciation up to the date of disposal was $45000 May 10: Sold 300 printers to Okoye Inc. on account. May 12 Rand Enterprises agreed to sign a 90-day note receivable to replace a $1500 accounts receivable due that day. The interest rate on the note is 14.25% May 20: Sold 8 printers to Captain Marvel Inc. using a VISA card to pay for the transaction. A 4.5% service fee is charged by VISA May 22: Sold 142.5 printers to Carol Danvers Public School on account. May 24: Returned for credit 5 damaged printers from Okoye Inc., costing $345 each. May 28: Received payment in full from Okoye Inc. for tha balance owing. May 28: Wrote off as uncollectable 54875 of accounts receivable. May 29: Paid accounts payable, S19500 May 30: Recovered an accounts receivable that was written off in April, $1350. May 31: Paid operating expenses totalling $68250. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 9 years. The furniture & fixtures are depreciated using the straight-line method over 9 years. There is no residual value on the furniture and fixtures May 31: Recorded interest on the note payable May 31: Recorded interest on the notes receivable May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days 31-60 days 61-90 days 90+ days Accounts Receivable $43500 $16500 $4875 $1575 Estinated Percentage Uncollectable 1.5% 6% 18% 37.5% Number of Days Outstanding 0-30 days 31-60 days 61-90 days 90+ days Accounts Receivable $43500 $16500 $4875 $1575 Estinated Percentage Uncollectable 1.5% 6% 18% 37.5% Other Information: 1) The selling price for each of the printers is $750 2) Iron Man Corporation uses the FIFO method under the perpetual inventory system to account for inventory 3) In the past, Iron Man Corporation has used the following accounts on their financial statements: Bad Debt Expense. Cost of Goods Sold, Credit Card Fee, Depreciation Expense. Gain on Sale Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable. Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period Required: 1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2022. Place your answer under "Requirement 1' in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 2) Prepare an adjusted trial balance as at May 31, 2022. Place your answer under "Requirement in the "Answer" tab. Place your account titles in column H. debits in column I and credits in column J. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 3) Prepare the multi-step Income Statement for the month of May 2022. Ignore income taxes. Place your answer under "Requirement 3* in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 4) Prepare a classified Balance Sheet at at May 31, 2022. Place your answer under "Requirement 4' in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 5) Assume Iron Man Corporation overstated its ending inventory by 52550. How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place your answer under "Requirement 5* in the "Answer" tab using the drop down menus. Enter any type responses in the designated spots. 6) Assume that Iron Man Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $900 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement 6 in the "Answer' tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question Iron Man Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2022, the following were the account balances of Iron Man Corporation: Cash Accounts Receivable Inventory (637.5 units) Van Furniture & Fixtures Total Debits Debits 60750 22500 127500 48000 13500 Credits Allowance for Doubtful Accounts 2250 Accumulated Depreciation (Van) 45000 Accumulated Depreciation (Furniture & Fixtures 3000 Accounts Payable 12000 Common Shares 15000 Retained Earnings 195000 Total Credits 272250 272250 During May 2022, the following transactions took place: May 1: Bought 210 desktop printers for $285 each on account. May 1: Bought a van, paying S15000 cash as a down payment and signed a 10 month S60000,9% note payable for the balance. The company paid $1200 to have its company logo painted on the side of the van. The residual value is $12000. The old van was sold for $8250: it cost $48000 and acculumated depreciation up to the date of disposal was $45000 May 10: Sold 300 printers to Okoye Inc. on account. May 12 Rand Enterprises agreed to sign a 90-day note receivable to replace a $1500 accounts receivable due that day. The interest rate on the note is 14.25% May 20: Sold 8 printers to Captain Marvel Inc. using a VISA card to pay for the transaction. A 4.5% service fee is charged by VISA May 22: Sold 142.5 printers to Carol Danvers Public School on account. May 24: Returned for credit 5 damaged printers from Okoye Inc., costing $345 each. May 28: Received payment in full from Okoye Inc. for tha balance owing. May 28: Wrote off as uncollectable 54875 of accounts receivable. May 29: Paid accounts payable, S19500 May 30: Recovered an accounts receivable that was written off in April, $1350. May 31: Paid operating expenses totalling $68250. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 9 years. The furniture & fixtures are depreciated using the straight-line method over 9 years. There is no residual value on the furniture and fixtures May 31: Recorded interest on the note payable May 31: Recorded interest on the notes receivable May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days 31-60 days 61-90 days 90+ days Accounts Receivable $43500 $16500 $4875 $1575 Estinated Percentage Uncollectable 1.5% 6% 18% 37.5% Number of Days Outstanding 0-30 days 31-60 days 61-90 days 90+ days Accounts Receivable $43500 $16500 $4875 $1575 Estinated Percentage Uncollectable 1.5% 6% 18% 37.5% Other Information: 1) The selling price for each of the printers is $750 2) Iron Man Corporation uses the FIFO method under the perpetual inventory system to account for inventory 3) In the past, Iron Man Corporation has used the following accounts on their financial statements: Bad Debt Expense. Cost of Goods Sold, Credit Card Fee, Depreciation Expense. Gain on Sale Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable. Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period Required: 1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2022. Place your answer under "Requirement 1' in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 2) Prepare an adjusted trial balance as at May 31, 2022. Place your answer under "Requirement in the "Answer" tab. Place your account titles in column H. debits in column I and credits in column J. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 3) Prepare the multi-step Income Statement for the month of May 2022. Ignore income taxes. Place your answer under "Requirement 3* in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 4) Prepare a classified Balance Sheet at at May 31, 2022. Place your answer under "Requirement 4' in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question 5) Assume Iron Man Corporation overstated its ending inventory by 52550. How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place your answer under "Requirement 5* in the "Answer" tab using the drop down menus. Enter any type responses in the designated spots. 6) Assume that Iron Man Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $900 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement 6 in the "Answer' tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the