Please solve this financial statement homework. #ACCT #HW #3

Financial Statement Homework #3 Please circle section time: 8:00, 9:30, 2:00 YOU MUST STAPLE YOUR PAGES TOGETHER! Pan 1: At November 30, 2016, Rocky Mountain Company had the following trial balance. There is detailed information on the next page about December 2016 transactions that need to be recorded. Rocky Mountain Company Trial Balance _11 30 16 Cr Aceounls Receivable _62 000 _Iowance for Doubtful Accounts 5 000 _ Inventory 65,000 Equipment 195,000 Building 0 Accumulated Deoreciation 75 000 m_- Accounts Payable 45,000 Dividends Payable 0 Interest Pa ble 0 25 ooo _ 15 mo LT Mortgage Payable 0 Bonds Payable 200,000 Premium on Bonds Payable 26,840 Common Stock - '13 000 86 mo __ 1 mo Paid In Capital In Execs of Par PS 50,000 Treasury Stock Retained Eamin-s 105 000 __EEEI Sales Revenue 819,000 Sales Returns 81 Allowances 3,840 Sales Discounts 9,000 Cost of Goods Sold 380 000 __EEI Wages Expense 260,000 Rent Expense 63,000 Insurance Exense 16 000 Interest Revenue 1,000 Interest Expense 8,000 Gain on Sale of Equipment 15,000 - 4 000 1 . 71 340 Page 1 of9 W Vou mmmmlnthemrkperfonnedmthesheetsprlntedwlthmispage. Th'sWILLNOTBE ACCEPTEDONPLAINPAPER. I Write the journal entris (on the following General Journal page) required for each of the events descrlbed below. Write the entries in the order described below (#1 - #8). 0 Use ONLY the accounts listed on the trial balance for your journal entries. . Post the transactions to individual T-acoounts and prepare an adjusted trial balance for Rocky Mountain Company as of December 31, 2016. 1. The company purchased a building December 1, 2016 with a LT Mortgage Payable of $300,000 at 8% interest. (Record the purchase of the building.) 2. The company issued 1,000 shares of Common Stodt for $6,000 on December 25, 2016. 3. On December 29, 2016 the company declared a ash dividend of $3.00 per share for common smdr on the Iharel Issued and dedared (including the additional 1,000 shares declared on December 75".) 4. The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment cons'sls of interest on the unpaid balance of the loan and a reduction of loan principal. Record the rst monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2016. 5. The company last paid interest on the Sr note payable on November 1, 2016. Record the accrued interest mtpense for the last 2 months of 2016. The annual intest rate is 8%. mm mm. 6. The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan. 1, 2016 issuance of the following bonds: On Jan. 1, 2016, the company issued 10%, 10year bonds when the market rate for s'milar immuts was 8%. The company pays interst arch year on January 1\". On Dec. 31, 2016, use the effective interest method of amorh'zing the premium on bonds payable to accrue the interest expensefor 2016. ' , -, .. l1-1- ,. stellar. 441174.71 . . :7. LL' , 7. The Uneamed Revenue amount on the Nov. trial balance reates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some ofthse sals during December and now ms only $16,000 of that unearned revenue. Record the neocsary adjum'nent for December 31, 2016. 8. On December 31, 2016, the company purchased 50 shars of its own Preferred Stock forme Stock for $11 per share. PageZof9 GENERAL JOURNAL DATE ACCOUNT NAME DEBIT CREDIT Pageof9 Use the space below for T-accounls (REQUIRED). Rocky Mountain Company (Specic inslructions: Prepare T-accounls for each account affected by a journal entry. Write in lhe ADJUSTED TRIAL BALANCE unadjusted balance for each ofthse accounts (from page 1)...the unadjusted balance might be a 12/31/16 debit, a credit, or zero balance. Now you are ready to post your journal entria from page 3 onto me or a mrraponding T-accounls and then mlculate adjusted balancs.) (ash Mourns Renewable Allowance for Doubtful Accoums Short Term Note Receivable mks Inventory lament Building Accumulated Depredaon chyijght Acooums Payable Dividends Payable Interest Payable unearned Revenue sr Mole Pawble LT Mortgage Payable chds Payable Premium on Bonds Payable Common Slack - $1 par Raid In Capital In Bums ofPar-CS Preferred 9mm - 35 par Paid In Capital ln Exces ofParPs Treasury smock Retained Eamings Dividends Sales Revenue Sales Remus & Allowances Sals D'Bmums Can of Goods Sold Bad Debts Expense pgpredab'on Expense Wages Expense Rent Expense lnsnance Expense Sugpl'les Expense lmerst Revenue Interest Expense Gain on Sale of Equ_ipment Income Tax Bmense Tolal Pngelof PageSof9 . What is me effect on the accounting equation when Treasury Stock B purchaad? Assets = Liabilities + Stockholders' Equity = + (ll in blanis with arrows to Indltzte what changes and in which direction) . How many Common Stock Shara are oulstanding at 12/31/2016? (HINT: Remember that the treasury shara purchased on 12/31/2016 were Preferred Shara, not Common Shara) . If this company had a common Stock 3-1 stock split on Dec. 31, 2016: a. How many Shara would there be after the split? b. What is the par value per share in dollars after the split? . Doa the carrying Value of the Bonds Payable and Premium increase or decrease over the life of the bonds? . What will be the balance in the Mortgage Payable Account at Jan. 31, 2017 after the saond monme payment is made? . The Company is about to issue $2,000,000 of 5yar, 12% bonds. Interat will be paid semi- annually. The market interat rate for such securitia is 10%. How much In The Company m to receive from the sale (issuance) of thae bonds? Pageof9 m NOTE: This is 3 DIFFERENT COMPANY. Using le trial balance below, complete the Wand prepare the Wand Cass/ed Balance Sheraton the paga which follow. To get full credit you must include all critical Subtotals. Cajlas Company Adjusted Trial Balance December 31, 2015 DEBIT CREDIT | cash 1,900 | Accounts Receivable 2,460 | Allowance for Doubtful Accounts 670 Short term Note Receivable 200 Interat Receivable 20 I Supplies 30 I Inventory 3,000 I Prepaid Expenses 150 I Equipment 10,720 | Accumulated Depreciation 1,970 | Copyrights 600 Accounts Payable 670 I Interat Payable 20 I Uneamed Revenue 50 I Long Term Note Payable 1,400 I Common Stod( 6,600 I Paid-in-capnal In Excess of Par - c; 800 I Retained Earnings (1/1/15) 3,160 | Dividends 600 I Sala 36,800 | Sales Returns & Allowances 40 I Sales Discounts 60 | Cost of Goods Sold 21,200 | Bad debt expense 30 I Depreciation Expense 770 I Amortization Expense 70 I Waga Expense 8,000 I Rent Expense 500 I Ofce Expense 80 I Supplies Expense 100 I Selling Expense 800 I Interat Expense 200 I Imam Revenue 150 I Income Tax Expense 760 I Totals 52,290 52,290 | hge70f9 Cajias Company Cajlas Company Multi Step Income Statement Classied Balance Sheet For the year ended December 31, 2015 December 31, 2015 (Be sure to include all the necesary headings, totals and subtotals as outlined in Chapwr 5. You (Be sure to include all the necessary subtotals and totals as outlined In Chapter 2. You may not need may not need in use all the lines provided. Note: The two columrs below do not represent debit and to use all ofthe lines provided. Note: The two columns below do not represent debit and credit credit balances like they do on a trial balance. On the Income Statement, use the right column for balances like they do on a trial balanm. 0n the Balance Sheet, use the right column for subtotms Subtotals and nals.) and totals.) Cajias Company ' Statement of Retained Earnings For the year ended December 31, 2015 } Pagelion Page'of9