Question
Northwest Sales had the following transactions in 2016: 1. The business was started when it acquired $54,500 cash from the issue of common stock. 2.
Northwest Sales had the following transactions in 2016: 1. The business was started when it acquired $54,500 cash from the issue of common stock. 2. Northwest purchased $175,000 of merchandise for cash in 2016. 3. During the year, the company sold merchandise for $196,350. The merchandise cost $107,993. Sales were made under the following terms: a. $ 50,620 Cash sales b. 139,050 Credit card sales (The credit card company charges a 4.00 percent service fee.) c. 6,680 Sales on account 4. The company collected all the amount receivable from the credit card company. 5. The company collected $6,146 of accounts receivable. 6. The company paid $45,107 cash for selling and administrative expenses. 7. Determined that 3.25 percent of the ending accounts receivable balance would be uncollectible.
Prepare an income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2016. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign. Round your answers to the nearest whole dollar.)
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