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Please solve requirement 3 and 4. Thank you aptain America Corporation is a small private corporation that sells desktop printers to local businesses and schools.
Please solve requirement 3 and 4. Thank you
aptain America Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2022, the foll ere the account balances of Captain America Corporation: Debits Credits 750 Cash Allowance for Doubtful Accounts 20250 7500 Accounts Receivable Accumulated Depreciation (Van) 15000 Inventory (212.5 units) 42500 Accumulated Depreciation (Furniture & Fixtures 1000 Van 16000 Accounts Payable 4000 Furniture & Fixtures 4500 Common Shares 5000 Retained Earnings 65000 Total Debits 90750 Total Credits 90750 During May 2022, the following transactions took place: During May 2022, the following transactions took place: May 1: Bought 100 desktop printers for $95 each on account. May 1: Bought a van, paying $4500 cash as a down payment and signed a 7 month $20000, 6% note payable for the balance. The company paid $375 to have its company logo printed on the side of the van. The residual value is $4000. The old van was sold for $2750; it cost $16000 and acculumated depreciation up to the date of disposal was $15000. May 10: Sold 60 printers to Falcon Inc. on account. May 12: Advanced Idea Mechanics agreed to sign a 60-day note receivable to replace a $850 accounts receivable due that day. The interest rate on the note is 4%. May 20: Sold 2 printers to Iron Man Inc. using a VISA card to pay for the transaction. A 1% service fee is charged by VISA. May 22: Sold 48 printers to Sam Wilson Public School on account. May 24: Returned for credit 2 damaged printers from Falcon Inc., costing $120 each. May 28: Received payment in full from Falcon Inc. for the balance owing May 28: Wrote off as uncollectable $1875 of accounts receivable. May 29: Paid accounts payable, $6000. May 30: Recovered an accounts receivable that was written off in April, $250. May 31: Paid operating expenses totalling $22750. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 8 years. The furniture & fixtures are depreciated using the straight-line method over 3 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days 31-60 days 61-90 days 90+ days $525 Accounts Receivable $13500 $5500 $2125 5% Estinated Percentage Uncollectable 1% 2.5% 10% Other Information: 1) The selling price for each of the printers is $225. 2) Captain America Corporation uses the FIFO method under the perpetual inventory system to account for inventory. 3) In the past, Captain America Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period. Required: 1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2022. Place your answe under "Requirement 1 in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. Explanations are not required. 2) Prepare an adjusted trial balance as at May 31, 2022 Place your answer under "Requirement 2" in the "Answer" tab. Place your account titles in column H. debits in column I and credits in column J. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 3) Prepare the multi-step Income Statement for the month of May 2022. Ignore income taxes. Place your answer under "Requirement 3 in the "Answer" tab. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. 4) Prepare a classified Balance Sheet at at May 31, 2022. Place your answer under "Requirement 4" in the "Answer" tab. Ensure your spelling is accurate Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the Step by Step Solution
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