Lionel, Inc began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful accounts 650 Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25,000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc (Round calculations to the nearest whole dollar ) Purchased equipment for cash of $8,000 The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered Paid $9,000 in advance to lease office facilities Purchased $300 of supplies on account to be used over the next several months by the business Purchased $30,000 of inventory on account, FOB destination point The responsible party paid $500 cash to the shipping company in event 4 Sold inventory costing $10,000 for $35,000 on account with terms 1 15, n 30 Paid $10,000 cash on accounts payable Collected $20,000 of accounts receivable on items sold in event 6 within the discount period Paid dividends of $500 Paid $1,200 for advertising expense for the year Wrote off an uncollectible account of $150 On December 20, received $5,000 cash in advance for services to be performed during Year 4 Sold the land for $37,000 cash Year end Adjustments Accrued interest on the Note Receivable in the amount of $200 The advance payment for insurance rental of the office facilities (event 4) was made on April 1 for a one year lease term Counted supplies on hand at the end of the period and determined that $500 had been used during the year Recognized $2,000 of depreciation on equipment Recognized uncollectible account expense for the year Lionel uses the allowance method and estimates that 5 of the accounts receivable will not be collected Required Record the above transactions in general journal form Post the transactions and adjustments to T accounts Create an adjusted Trial Balance Using good form, prepare a multi step income statement, statement of changes in stockholders' equity and a classified balance sheet

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Posted on Jul 26, 2024

Lionel, Inc. began Year 3 with the following account balances, in alphabetical order

Accounts Payable	8,100
Accounts Receivable	13,000
Allowance for doubtful accounts	650
Cash	30,525
Common Stock	40,000
Inventory	11,150
Land	25,000
Note Receivable	10,000
Retained earnings	41,400
Supplies	475

The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.)

Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered.
Paid $9,000 in advance to lease office facilities.
Purchased $300 of supplies on account to be used over the next several months by the business.
Purchased $30,000 of inventory on account, FOB destination point.
The responsible party paid $500 cash to the shipping company in event #4.
Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30.
Paid $10,000 cash on accounts payable.
Collected $20,000 of accounts receivable on items sold in event # 6 within the discount period.
Paid dividends of $500.
Paid $1,200 for advertising expense for the year.
Wrote off an uncollectible account of $150.
On December 20, received $5,000 cash in advance for services to be performed during Year 4.
Sold the land for $37,000 cash.

Year-end Adjustments

Accrued interest on the Note Receivable in the amount of $200.
The advance payment for insurance rental of the office facilities (event #4) was made on April 1 for a one-year lease term.
Counted supplies on hand at the end of the period and determined that $500 had been used during the year.
Recognized $2,000 of depreciation on equipment.
Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected.

Required

Record the above transactions in general journal form.
Post the transactions and adjustments to T-accounts.
Create an adjusted Trial Balance.
Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet.