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Just fill out the accounts correctly with the correct account and price Chart of Accounts Depreciation Expense Dividends Equipment Insurance Expense Interest Expense Interest Payable
Just fill out the accounts correctly with the correct account and price
Chart of Accounts Depreciation Expense Dividends Equipment Insurance Expense Interest Expense Interest Payable Accounts Payable Accounts Receivable Accumulated Depreciation Cash Common Stock Cost of Goods Sold Assets Balance sheet at May 1 Purchased 200 karaoke machines for $6,000 on account. Paid $2,400 cash for six months of insurance coverage that begins May 1. Sold 150 karaoke machines on account. The sales price was $70 and the cost was $30 per machine. Record both the sale and the cost of the sale. Collected $2,500 of its accounts receivables from the sales made on account. Paid for $5,000 of the inventory purchased on account earlier. Declared and paid a $300 cash dividend to its shareholders. Adjusted for insurance used during the month that was paid at the beginning of the month. Adjusted for $100 of depreciation on its equipment (= ($12,000/10 years of usefulness) x 1/12 year. Adjusted for $900 of wages owed that will be paid in the first week of June. Adjusted for the $40 (=$8,000 x 6%/year x 1/12 year) of interest owed on the bank loan due June 30. 5,600 Cash 600 Inventory 11,900 Equipment, Net Inventory Notes Payable Prepaid Insurance Sales Revenue Wages Expense Wages Payable Liabilities Shareholders' Equity 8,000 Notes Payable 40 Interest Payable 8,000 Common Stock 2,060 Retained Earnings Using the May transactions, prepare the following four financial statements: Karry-no-key, Inc. Income Statement For the Month Ended May 31 Karry-no-key, Inc. Statement of Shareholders' Equity For the Month Ended May 31 Sales Revenue Beginning Common Stock Cost of Goods Sold Stock Issued Gross Profit Ending Common Stock Insurance Expense Beginning Retained Earnings Depreciation Expense Net Income Wages Expense Dividends Operating Income Ending Retained Earnings Interest Expense Total Shareholders' Equity Net Income Karry-no-key, Inc. Statement of Cash Flows For the Month Ended May 31 Cash from Operating Activities: Cash Collected from Customers Cash Paid for Inventory Cash Paid for Insurance Total Cash from Operating Activities Cash from Investing Activities Cash from Financing Activities Dividends Paid Net Change in Cash Plus Beginning Cash Balance Ending Cash Balance $ 0 5,600 When completing the balance sheet, do not forget to include the beginning balances. Karry-no-key, Inc. Balance Sheet May 31 Cash Accounts Payable Accounts Receivable Wages Payable Inventory Notes Payable Prepaid Insurance Interest Payable Common Stock Retained Earnings Total Liabilities and Shareholders' Equity Equipment, Net of Accumulated Depreciation Total Assets $ 8,000 0 $ 2,060Step by Step Solution
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