Question
January 2: After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the
January 2: After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the cookie market. No common stock ownership was given.
2. January 3: In order to keep the IRS off his trail, Mr. Burns transferred money from his personal account into a Cayman Island secret account for $1,000,000.
3. January 3: In order to expand his cookie factory and be able to dump toxic waste without being impeded by the Feds, Mr. Burns bought land for cash for $500,000. The bald children in the park were drawing attention from the Environmental Protection Agency.
4. January 4: After threatening to block out the sun, Mr. Burns was able to collect $115,000 of the 2020 accounts receivable beginning balance.
5. January 5: In order to ease his beginning of the year cash flow crunch, Mr. Burns issued Common Stock (1,500,000 shares at $2.00 per share). The Par Value is $1.00 per share.
6. February 1: In order to keep up with being 104 year old hip evil billionaire, Mr. Burns decided to purchase a new truck. The truck cost $60,000. Mr. Burns put a down payment on the truck of $10,000 and took out a note for the rest (long term). The interest rate of the note is 10%. The truck will depreciated by miles. The expected life of the truck is 100,000 miles.
7. February 20: Mr. Burns sold his delicious cookies to Candy Store on account $300,000. Mr. Burns offered terms 2/20, n40. The cost of merchandise sold was $150,000.
8. February 28: Mr. Burns bought cookie dough (inventory) to keep the cookie assembly line going. Mr. Burns paid cash for the cookie dough $400,000
9. March 1st. Mr. Burns reclassed the current portion of long term notes payable. Reclass only the portion on the balance sheet as of January 1st, 2020.
10. March 5: Mr. Burns paid for the following expenses that came in: Sales Salary Expense $70,000, Advertising Expense $50,000, and Delivery Expense $40,000. All of the expenses were paid in one transaction.
11. March 6: Mr. Burns collected $30,000 of the 1/1/2020 balance of the note receivable from Mayor Quimby. The interest rate was 15% and the Note was written on July 1th, 2019
12. March 7: The Candy Store paid Mr. Burns what they owed him on account.
13. March 15: Mr. Burns paid income tax payable owed from last year.
14. April 1: Not liking being accountable to outside shareholders, Mr. Burns decided to buy back some treasury stock. Mr. Burns bought the $1.00 per value shares back (300,000 shares) at $.50 per share.
15. April 4: Because of cockroaches in some of the radioactive cookie dough, Mr. Burns was required to buy additional inventory. He paid $98,000 for the inventory.
16. April 10: Mr. Burns paid for the following expenses: Advertising $100,000, Office Salaries $80,000, Wages $40,000, and Utility $10,000. All expense transactions were settled with one payment transaction.
17. May 01: The Grocery Store bought $400,000 of cookies on account. Mr. Burns was still angry that his casino got shutdown so there were no discount terms. The cost of the inventory was $200,000
18. June 1: Having its own cash flow crunch, The Grocery Store paid Mr. Burns $100,000 and issued a note for $300,000. Against their better judgment, they agreed to the terms of 14%
19. June 2: Mr. Burns issued a 2:1 Stock Split
20. June 3: Mr. Burns bought back an additional 200,000 shares of Treasury Stock at $.50 per share
21. June 21: The following expenses accrued and are to be paid in a later month: Pension Expense $60,000, Health Insurance Expense $50,000, and Professional Fees $10,000.
22. July 1. Mr. Burns issued $600,000, 10 years (semi annual payments) coupon rate of 10%, market rate of 12%. Mr. Smithers gave this bond the code name Bond #1
23. July 1. Mr. Burns issued $500,000 bond (Bond #2) 10 years (semi-annual payments) coupon rate of 12%, market rate of 10%.
24. September 8: Mr. Burns paid the expenses accrued on June 21. The accrued expenses were paid with one check transaction.
25. October 1: The Grocery Store paid the principle of the note and the interest.
26 October 15: Mr. Burns wrote off the amount sitting in allowance for doubtful account because Abe Simpson refused to pay for the cookies he bought in 2019. Mr. Burns used $50,000 of personal funds to hire a hit squad to go after Abe Simpson.
27. November 1: After being advised by legal counsel and Mr. Smithers that killing off competition was considered murder, Mr. Burns decided to get a patent to keep from his secrets from being used by his rivals. He paid $200,000 for his patent which will be amortized for 15 years.
28. December 1: Mr. Burns bought Cookie Dough and paid for the amount up front to get a bulk discount. The amount paid is $400,000
29. December 8: Mr. Burns bought office supplies on account from Staples for $50,000.
30. December 9 Mr. Burns sold $400,000 of cookies on account to Shelbyville. The cost of sales was $200,000
31. December 25: Mr. Burns paid a cash dividend after being visited by the three ghosts of Christmas to the Shareholder $400,000
32. December 31: Mr. Burns made interest payment on Bond #1. Use effective interest method. The payments are considered to be ordinary annuities
33. December 31: Mr. Burns made interest payment on Bond #2 Use effective interest method. The payments are considered to be ordinary annuities
January 2: After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the cookie market. No common stock ownership was given.
2. January 3: In order to keep the IRS off his trail, Mr. Burns transferred money from his personal account into a Cayman Island secret account for $1,000,000.
3. January 3: In order to expand his cookie factory and be able to dump toxic waste without being impeded by the Feds, Mr. Burns bought land for cash for $500,000. The bald children in the park were drawing attention from the Environmental Protection Agency.
4. January 4: After threatening to block out the sun, Mr. Burns was able to collect $115,000 of the 2020 accounts receivable beginning balance.
5. January 5: In order to ease his beginning of the year cash flow crunch, Mr. Burns issued Common Stock (1,500,000 shares at $2.00 per share). The Par Value is $1.00 per share.
6. February 1: In order to keep up with being 104 year old hip evil billionaire, Mr. Burns decided to purchase a new truck. The truck cost $60,000. Mr. Burns put a down payment on the truck of $10,000 and took out a note for the rest (long term). The interest rate of the note is 10%. The truck will depreciated by miles. The expected life of the truck is 100,000 miles.
7. February 20: Mr. Burns sold his delicious cookies to Candy Store on account $300,000. Mr. Burns offered terms 2/20, n40. The cost of merchandise sold was $150,000.
8. February 28: Mr. Burns bought cookie dough (inventory) to keep the cookie assembly line going. Mr. Burns paid cash for the cookie dough $400,000
9. March 1st. Mr. Burns reclassed the current portion of long term notes payable. Reclass only the portion on the balance sheet as of January 1st, 2020.
10. March 5: Mr. Burns paid for the following expenses that came in: Sales Salary Expense $70,000, Advertising Expense $50,000, and Delivery Expense $40,000. All of the expenses were paid in one transaction.
11. March 6: Mr. Burns collected $30,000 of the 1/1/2020 balance of the note receivable from Mayor Quimby. The interest rate was 15% and the Note was written on July 1th, 2019
12. March 7: The Candy Store paid Mr. Burns what they owed him on account.
13. March 15: Mr. Burns paid income tax payable owed from last year.
14. April 1: Not liking being accountable to outside shareholders, Mr. Burns decided to buy back some treasury stock. Mr. Burns bought the $1.00 per value shares back (300,000 shares) at $.50 per share.
15. April 4: Because of cockroaches in some of the radioactive cookie dough, Mr. Burns was required to buy additional inventory. He paid $98,000 for the inventory.
16. April 10: Mr. Burns paid for the following expenses: Advertising $100,000, Office Salaries $80,000, Wages $40,000, and Utility $10,000. All expense transactions were settled with one payment transaction.
17. May 01: The Grocery Store bought $400,000 of cookies on account. Mr. Burns was still angry that his casino got shutdown so there were no discount terms. The cost of the inventory was $200,000
18. June 1: Having its own cash flow crunch, The Grocery Store paid Mr. Burns $100,000 and issued a note for $300,000. Against their better judgment, they agreed to the terms of 14%
19. June 2: Mr. Burns issued a 2:1 Stock Split
20. June 3: Mr. Burns bought back an additional 200,000 shares of Treasury Stock at $.50 per share
21. June 21: The following expenses accrued and are to be paid in a later month: Pension Expense $60,000, Health Insurance Expense $50,000, and Professional Fees $10,000.
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