Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Needed: Journal Entries, Ledgers, Adjusting Entires, Trial Balance, post closing trial balance, Income Statement, Comparative Balance Sheet (Beginning Balance and Ending Balance) Cash Flow Statement
Needed: Journal Entries, Ledgers, Adjusting Entires, Trial Balance, post closing trial balance, Income Statement, Comparative Balance Sheet (Beginning Balance and Ending Balance) Cash Flow Statement (using Indirect Method) and Statement of Owner's Equity.
Please show calculations
Ace is a local company sales computers to schools, municipalities and also provides IT services. During the year, accounting events are the following: . On Jan. 2. Ace paid three year rent in advance with a total amount of $180,180 On Jan. 14, Ace paid out salary owed to employees for the prior year in the amount of $52,500 On Jan. 25, stockholders invested additional $84,000 cash into the company On Feb. 14, Ace purchased office equipment costing $84,000 by signing a 6-month, 10% notes payable On Feb. 28, Ace performed IT service of $25,200 for a client which was contracted during the prior year On March 15, Ace sold computers and software in the amount of $151,200 on account for $378,000 On Apr. 1, Ace collected cash for inventory previously sold for $434,700 On May 3, Ace purchased Inventory in the amount of $840,000 on account On May 31, Ace received cash in advance for the maintenance service contract in the amount of $1,512,000, out of which $1,134,000 was performed this year On June 4, Ace sold computers and software in the amount of $714,000 on account for $1,713,600 On July 1, Ace partially paid-off inventory purchased on May 3 in the amount of $798,000 On Aug. 14, Ace paid off the notes payable of $84,000 borrowed on Feb. 14 plus interest On Sept. 1, Ace sold an equipment with original cost of $115,500 and accumulated depreciation of $50,400 for $81,375 On Oct. 1, Ace renewed the yearly insurance policy for $55,440 which expired on Sept. 30 On Nov. 1, Ace collected cash for inventory previously sold for $1,542,240 On Nov, 15, Ace decided that the bad debt expense for the entire year is $73,500, and wrote off $58,800 from account receivable . Over the entire year, Salary and wage expense are $630,000, of which $579,600 was paid Depreciation expense is $14,875 Additional interest expense is $2,000, of which $1,800 was paid Supply expense is $36,960 Income tax expense is $756,000, of which $642,600 was paid Ace declared and paid cash dividend in the amount of $48,090 300,300 Beginning Balance Sheet (T42, January 1) Assets Cash Accounts Receivable 147,000 Less: Allowance for doubtful accounts 6,300 Net accounts receivable Inventory Supplies Prepaid Insurance 140,700 168,000 46,200 37,800 PPE 210,000 Less: Accumulated depreciation-equipment 63,000 Net equipment Total assets 147.000 840,000 Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Accounts Payable Interest payable Salary Payable Unearned Revenue 105,000 6,720 52,500 33,600 Notes payable 168,000 Total liabilities 365,820 Stockholders' equity Common Stock Retained earnings 378,000 96,180 Total Liabilities and stockholders' equity 840,000 Account Number 1010 1020 1021 1030 1040 1050 1060 1070 1071 Account Names Cash Accounts Receivable Allowance for doubtful accounts Inventory Supplies Prepaid Insurance Prepaid Rent PPE Accumulated Depreciation 2010 2020 2030 2040 2050 2060 2070 Accounts Payable Interest payable Salary Payable Unearned Revenue Income tax payable Notes payable Dividend Payable 3010 3020 Common Stock Retained earnings 4010 4020 4030 Service Revenue Sales Revenue Other Gains/Losses 5010 5020 5030 5040 5050 5060 5070 5080 COGS Bad debt expense Salary expense Insurance expense Interest expense Depreciation expense Supply expense Rent expense Income tax expense 5090Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started