Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me with this homework 1st part 2nd part 3 & required David Glaudan organized a new company, CapUniverse Inc. The company operates a

please help me with this homework
image text in transcribed1st part
image text in transcribed2nd part
image text in transcribed3 & required
David Glaudan organized a new company, CapUniverse Inc. The company operates a store in an area mall and specializes in baseball-type caps with logos printed on them and provides also T-shirt customization service, David, who is never without a cap, believes that his target market is college students and minor league baseball teams. You have been hired to record the transactions occurring in 2021and prepare financial statements The company had the following account balances at December 31, 2020 opening balance Long-Term Investment 16 DO Accumulated Depreciation Equipment 18 000 Accounts Receivable 19 20 Accounts Payable 12 000 Cash 18 000 Short Term Investment 2000 Supplies 400 Bank Loan Payable 7%interest rate 30 000 Unearned Revenue 2000 Common Shares 50 000 Wages Payable 1 600 Inventory 12 000 Retained Earnings 20 000 Equipment 66 000 During 2021, David prepared the following journal entries: 1 Prepaid Insurance 780 780 During 2021, David prepared the following journal entries: 1 Prepaid Insurance 780 Cash 780 2 Inventory 24 000 Accounts Payable 24,000 3 Accounts Receivable 36,000 Sales Revenue 36,000 Cost of Goods Sold 20,000 Inventory 20,000 4 Cash 26000 Accounts Receivable 78 000 Service Revenue 104.000 5 Accounts Payable 26,000 Cash 26,000 6 Cash 49,200 Accounts Receivable 49,200 7 Advertising Expense 2 400 Cash 2,400 8 Interest Expense Bank Loan Payable 2100 6.000 Cash 8100 9 Cash 600 Dividend Revenue 600 10 Utilities Expense 3.000 Cash 3.000 11 Dividends Declared 2.400 2.400 Cash 2,400 In addition, other transactions occurred at end 2021 and have not been recorded in the books): 12a. Paid $20,400 for wages during the year. 126. The company owed another $400 to the employees for the last week of work in December At year-end. 13. Depreciated the equipment for the year. The company had bought its equipment at the beginning of 2018, and it was expected to last 10 years and have a residual value of $6,000. 14. Made an adjustment for the annual cost of the insurance that expired in 2021 (for your information: David paid $780 for a three-year fire insurance policy beginning January and the transaction has been correctly recorded). REQUIRED: 1) Prepare a statement of income for 2021 (15 marks). 2) Prepare the closing entries (4 marks). 3) Prepare a statement of financial position for 2021 (19 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 19 - Related-Party Transaction Ruse

Authors: Kate Mooney

1st Edition

0071719415, 9780071719414

More Books

Students also viewed these Accounting questions

Question

OUTCOME 5 Discuss sexual harassment as an employment equity issue.

Answered: 1 week ago