Question
Please complete the charts and the answers must be in a chart format? Abardeen Corporation borrowed $81,000 from the bank on October 1, Year 1.
Please complete the charts and the answers must be in a chart format?
Abardeen Corporation borrowed $81,000 from the bank on October 1, Year 1. The note had an 4 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) c. What amount of total liabilities was reported on the December 31, Year 1, balance sheet? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) d. What total amount of cash was paid to the bank on March 31, Year 2, for principal and interest? e. What amount of interest expense was reported on the Year 2 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
Leach Inc. experienced the following events for the first two years of its operations:
Year 1:
- Issued $10,000 of common stock for cash.
- Provided $80,000 of services on account.
- Provided $27,000 of services and received cash.
- Collected $53,000 cash from accounts receivable.
- Paid $20,000 of salaries expense for the year.
- Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible.
Year 2:
- Wrote off an uncollectible account for $700.
- Provided $100,000 of services on account.
- Provided $30,000 of services and collected cash.
- Collected $82,000 cash from accounts receivable.
- Paid $26,000 of salaries expense for the year.
- Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible.
Required
- Organize the transaction data in accounts under an accounting equation.
- Make the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1.
- What is the net realizable value of the accounts receivable at December 31, Year 1?
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