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need help with this Spruce Timber Company had the following beginning balances and activity for Year 5. Cash Accounts Receivable AFDA Prepaid Rent Merchandise Inventory
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Spruce Timber Company had the following beginning balances and activity for Year 5. Cash Accounts Receivable AFDA Prepaid Rent Merchandise Inventory Land $50,000 Accounts Payable $4,500 $60,000 Common Stock $80,000 $3,000 Retained Earnings $131,200 $2,700 $22,000 $84.000 5 6 No. "Transaction 1 Purchased $140,000 of inventory on account with the credit terms 1/10, n/30. Shipping terms were FOB destination. Shipping costs, which totaled $1,200, were paid in cash. 2 Collected $7,000 of accounts receivable, no discounts were involved. 3 Wrote off$1,000 of accounts receivable deemed uncollectible, 4 Sold inventory that cost $20,000 for $48,000 on account with credit terms 2/10,n/30Shipping terms were FOB destination Shipping costs, which totaled S700 were paid in cash. Paid S25,000 on accounts payable not within the discount period. Sold inventory that cost $10,000 for $32,000 via credit card sales. The processing fee charged by the bank was 3% Shipping terms were FOB shipping point. Shipping costs, which totaled 5600, were paid in cash. -7 Collected the cash from the credit card sales in event 6 from the bank 8 The customer returned half of the inventory from event #4 9 Spruce Timber Company collected the remaining cash balance due from event #4. The invoice was paid within the discount period. 10 On April 1, Year 5, the company paid $18,000 cash in advance to rent office space for one year beginning on April 1. Year 5. The current (beginning) balance in Prepaid Rent was cash paid in advance on April 1, Year 4, for office space with lease terms starting on April 1, Year 4 to March 31. Year 5 A $200 account that had been previously written off was collected 12 Loaned $60,000 to the Yoder Company on August 1 Year 5. Terms of the note call for interest to be charged at 6% The money borrowed and interest must be re-paid on August 1 Year 6. 13 Paid a $3,000 dividend. 14 Estimated that 5%of accounts receivable will be uncollectible. 15 Paid operating expenses of S4,000 in cash 16 Sold the land for $81.000 cash. 17 At the end of the year, Spruce Timber Company accrued salary expense of $1,400. 18 Aphysical count of inventory on 12/31/Year 5 indicated that the company had $140,000 worth of goods on hand. Required: Record all journal entries in the general journal pages below including any necessary adjusting entries Step by Step Solution
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