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On October 1 An investor purchased 1 0 0 shares of stock ( 1 0 0 % ) of ABC Co . for $ 3
On October An investor purchased shares of stock of ABC Co for $ The was paid directly to ABC in exchange for ABC common stock. ABC Company purchased equipment for $; paying $ cash and financing through a longterm note the remaining portion. The interest rate is payable on January st of each year. ABC Company prepaid a years months worth of insurance and rent. Insurance payment was $ and the rent was $
ABC had the following transactions after :
ABC purchased the following inventory on credit: units at $unit units at $unit units at $unit
ABC sold units on account for $unit Terms are N ABC uses LIFO. ABC received $ in cash within days of the sales; and received the remaining amounts after yearend.
ABC was given $ in cash for inventory that will be delivered after yearend delivered next year
ABC paid $ for advertising. ABC paid $ for miscellaneous supplies. Cash was paid for both.
Paid $ in cash for salaries for the year. The end of the year was in the middle of the week and the total unpaid salary expense for the year was $ This $ will not be paid until first week of next year.
Sold services for $ in cash. We had to return $ back to customer as a return and allowance due to unsatisfactory work of our soontobefired employee.
At yearend the amount of supplies onhand was $ The equipment was depreciated by $ by yearend. We paid $ of our accounts payable balance by yearend. We estimate of credit tradesales to be uncollectible. The tax rate is Round all numbers to the nearest dollar.
ABC declared and paid a dividend of $
Prepare a Balance Sheet and Income Statement in good form for the yearended Also provide closing entries.
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