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Need help, thanks so much! Tile, Etc. had the following transactions in Year 3 : 1. Purchased merchandise on account for $595,000 2. Sold merchandise
Need help, thanks so much!
Tile, Etc. had the following transactions in Year 3 : 1. Purchased merchandise on account for $595,000 2. Sold merchandise that cost $435,000 for $920,000 on account. 3. Sold for $260,000 cash merchandise that had cost $166,000. 4. Sold merchandise for $205,000 to credit card customers. The merchandise had cost $102,000. The credit card company charges a 3 percent fee. 5. Collected $650,000 cash from accounts receivable. 6. Paid $625,000 cash on accounts payable. 7. Paid $148,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. Loaned $75,000 to J. Parks. The note had an 6 percent interest rate and a one-year term to maturity. 10. Wrote off $7,800 of accounts as uncollectible. 11. Made the following adjusting entries: (c) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 3 (see item 9). THE, ETC INCORPORATED Incorne Statement Prepare a statement of changes in stockholders' equity for Year 3. Prepare a statement of cash fiows for Year 3. Note: Amounts to be deducted and cash outflows should be indicated with a minus sign Step by Step Solution
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