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No handwritten work please Yonatan Company was established on Jan 1st 2014 by issuing 1,000 shares ($1 par value) in return to $4,000 in cash.

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Yonatan Company was established on Jan 1st 2014 by issuing 1,000 shares ($1 par value) in return to $4,000 in cash. As of Dec 31st 2014, the company had the following items on its balance sheet: Cash $25,000, Accounts Receivable, net $23,750, Inventory $10,000, Accrued Expenses $100, Long Term Liabilities $15,000, Common stock (??), Paid in Capital (??), Retained Earnings (??). Also, the allowance for doubtful accounts for Dec 31st 2014 is $1,250. During 2015 the company had the following transactions: On Jan 1st 2015 the company acquired 2 vehicles for $100,000. The vehicles have a useful life of 5 years and no salvage value. . The vehicles are depreciated using the Straight Line method. On July 1st 2015 one of the vehicle was sold for $48,000. On Dec 31st 2015 the company acquired a machine for $20,000, half of it was paid in cash and the rest will be paid on Jan 2nd 2016. On Feb 1st 2015 the company sold all its inventory for $30,000 in cash. On Aug 1st 2015 the company purchased a $50,000 worth of inventory. On Nov 11th 2015 half of this inventory was sold for $64,000, 75% was paid in cash and the rest on credit. On March 1st 2015 the company issued 500 shares ($1 par value) for $2,500 in cash On Sep 1st 2015 the company purchased an insurance for $54,000. The insurance is valid from Sep 1st 2015 until Aug 31st 2016. On Oct 1st 2015 the company declares a dividend in the amount of 20% out of the common stock par value which was paid in cash on that same day. On Feb 1st 2015 $10,500 out of the company's account receivable was collected. Also, according to information about a missing customer (for which there is an allowance) the company recognized a write off of $500. (Journal entry for allowance of doubtful accounts - 3 bonus points). On Jan 1st 2015 the company received a $120,000 loan from the bank. The loan carries a 2% annual interest rate to be paid once a year starting from Dec 31st 2015. The loan is due back in one payment on Jan 1st 2018. Additionally, during 2015 the company paid back $3,000 out of its previous year's liabilities (LT). On Jun 1st 2015 the company launches a marketing campaign that will last for two months .The campaign costs $1,500 which were paid in advance The company consumes electricity and water in a monthly cost of $100. The company pays the electricity and water bills on the following month of its consumption. (This section - 2 bonus points). On Feb 1st 2015 the company purchased 2,000 shares of Shani Company for $5,000 and classified them as a trading security. On Dec 31st 2015 the fair value of Shani Company's share was $4. (This section - 3 bonus points). Additional information: The company uses the percent of total accounts receivable method for doubtful accounts, with constant rate of 5%. The company uses a perpetual inventory method. The company's tax rate is 25%. The payment to the tax authorities is made on Jan 1st of the following year. (This section - 2 bonus points). The company didn't make any share issuance or buyback during 2014 other than the stated above. Assume transactions mention above are the only transactions during 2015. Also, unless mentioned otherwise, assume transactions are in cash, expenses and revenues are evenly distributed throughout the year. Required: Journalize the transactions (including adjusting journal entries for year-end) and prepare the Balance Sheet and Income Statement for year-ended 31st December 2015

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