Module 5 Homework Problem 5-1 Mystic Co., purveyor of fine, fine things, had the following balances at December 31, 20X0: Cash Accounts Receivable Allowance for doubtful accts Inventory Equipment Accumulated Depreciation-Equipment Land Patent Accounts Payable Salary Payable Rent Payable Taxes Payable Long-Term Debt Common Stock ($1 per share) Retained Earnings During 20X1 the following transactions occurred: Jan 1, Mar 1, April 15, May 1, May 15, July 1, July 1, Aug 1, Sept 1, Oct 1, Dec 1, Dec 31, 65,000 60,000 1,000 50,000 (1 thing) 190,000 60,000 50,000 20,000 42,000 4,000 2,000 2,000 80,000 90,000 154,000 received all beg A/R and paid all Beg A/P bought 2 things for $55,000 each, (Paid 25% down and rest payable in one year) paid year 20X0 taxes payable sold one thing for $90,000 (received 3/4 down and the rest in one year) bought 2 things for $70,000 (Paid 25% down and rest payable in one year) company wrote off $600 in bad debts sold two things for $100,000 (received 75% down and the rest will be paid in one year) purchased piece of equipment for $10,000 cash. Sold 60,000 shares of common stock for $60,000 Purchased a piece of land for $50,000 declared and paid $.20 per share dividend. paid an annual payment on long term debt- $28,000. Of that amount, $8,000 was for interest and $20,000 was for principal. During the year the company paid 15 months' rent of $15,000. Also during the year the company paid salaries of $12,000 in cash, and at the end of the year they owed $3,000 for salaries. Depreciation for the year is $10,000. The tax rate is 30% and during the year the company paid 50% of 20X1 taxes. The company uses the FIFO inventory system. The company estimates that 3% of its receivables will ultimately be uncollectible. Journalize the above transactions and post them to T-Accounts. Prepare any necessary adjustments. Prepare a P&L, Statement of Owners' Equity, and Balance Sheet for the year 20X1.

Module 5 Homework Problem 5-1 Mystic Co., purveyor of fine, fine things, had the following balances at December 31,200 : During 20X1 the following transactions occurred: Jan 1 , received all beg A/R and paid all Beg A/P Mar 1, bought 2 things for $55,000 each, (Paid 25\% down and rest payable in one year) April 15, paid year 200 taxes payable May 1, sold one thing for $90,000 (received 3/4 down and the rest in one year) May 15, bought 2 things for $70,000 (Paid 25\% down and rest payable in one year) July 1 , company wrote off $600 in bad debts July 1, sold two things for $100,000 (received 75% down and the rest will be paid in one year) Aug 1, purchased piece of equipment for $10,000 cash. Sept 1 , Sold 60,000 shares of common stock for $60,000 Oct 1, Purchased a piece of land for $50,000 Dec 1, declared and paid S.20 per share dividend. Dec 31, paid an annual payment on long term debt- $28,000. Of that amount, $8,000 was for interest and $20,000 was for principal. During the year the company paid 15 months' rent of $15,000. Also during the year the company paid salaries of $12,000 in cash, and at the end of the year they owed $3,000 for salaries. Depreciation for the year is $10,000. The tax rate is 30% and during the year the company paid 50% of 20X1 taxes. The company uses the FIFO inventory system. The company estimates that 3% of its receivables will ultimately be uncollectible. Journalize the above transactions and post them to T-Accounts. Prepare any necessary adjustments. Prepare a P\&L, Statement of Owners' Equity, and Balance Sheet for the year 20X1