Question
Pelcher Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect
Pelcher Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The companys balance sheets and income statement follow.
PELCHER CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash $ 512,000 $ 327,000 Accounts receivable 153,000 131,000 Inventory 647,000 566,000 Total current assets 1,312,000 1,024,000 Equipment 413,000 359,000 Accum. depreciationEquipment (195,000 ) (125,000 ) Total assets $ 1,530,000 $ 1,258,000 Liabilities and Equity Accounts payable $ 135,000 $ 111,000 Income taxes payable 32,000 29,000 Total current liabilities 167,000 140,000 Equity Common stock, $2 par value 832,000 768,000 Paid-in capital in excess of par value, common stock 311,000 215,000 Retained earnings 220,000 135,000 Total liabilities and equity $ 1,530,000 $ 1,258,000
PELCHER CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 2,662,000 Cost of goods sold 1,614,000 Gross profit 1,048,000 Operating expenses Depreciation expense $ 70,000 Other expenses 734,000 804,000 Income before taxes 244,000 Income taxes expense 74,690 Net income $ 169,310
Additional Information on Year 2017 Transactions
A) Purchased equipment for $54,000 cash. B) Issued 32,000 shares of common stock for $5 cash per share. C) Declared and paid $84,310 in cash dividends.
Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method
Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the December 31, 2017 balances.
Journal entry worksheet .....
Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.
Note: Enter debits before credits.
Date Account Title Debit Credit Dec 31
PLEASE SOLVE THIS PROBLEM FOR ME ASAP ALONE WITH SEP BY STEP PLEASE
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