Prepare a balance sheet as of December 31, 2018.
OldCo Inc. is a balance sheet for OldCo Inc. as of September 30, 2018: OldCo Inc. Balance Sheet as of September 30, 2018 Assets Liabilities and Equities Accounts Payable Salaries Payable Note Payable Total Current Liabilities: and cash equivalents Receivable 5375 500 900 110 Expenses S875 Total Current Asscts: S1,885 Common Stock, SI par $400 800 310 $1,000 Retained EarmingsS1510 Equity Total Liabilities& net Total Assets 385 Shareholders' Equitv Here are some facts: 1. The company began using the prepaid expenses on September 1,2018, and the usage is uniform over their term All of these benefits last until they expire on August 31, 2019. The usage of these benefits is classified as a Miscellaneous Expense. 2. The firm depreciates its equipment over a 10-year life. Estimated salvage value is zero. It purchased all the equipment at one time at an original cost of $1,000 thousand. 3. The note payable carries an interest rate of 12 percent (compounded quarterly) and was issued or September 30, 2018. Interest begins accruing at the beginning of the day on October1, 2018. All interest will be paid, along with the principal of the note, on April 1, 2019. The following information pertains to the quarter October 1, 2018 to December 31, 2018. a) Sales were $7,500 thousand all on account. b) Purchased merchandise inventory on account from various suppliers for S3,500 thousand. c) Paid employees a total of $2,000 thousand for work performed in this and prior periods. d) Issued 10 thousand shares of common stock in exchange for S350 thousand cash on October 1,2018. e) Employees eamed salaries of $35 thousand during the last three days of December but were not f Paid accounts payable of $3,450 thousand. g Incurred Misccllancous Expenses of S85 thousand in addition to the expirations of Prepaid Expenses paid. These are the only unpaid salaries at the end of December, during the quarter. Paid off all liabilities related to this $85 thousand in Miscellaneous Expenses. h) On December 31, 2018, paid S50 thousand for Buffet Company. Buffet Company had only two identifiable assets, Accounts Receivable with a fair market value of S35 thousand and inventory with a fair market value of $10 thousand i) Merchandise inventory with a cost of $425 thousand was on hand on December 31, 2018. This includes the inventory acquired from Buffet Company Traded a piece of equipment with a cost of $64 thousand and accumulated depreciation of S16 thousand for a new piece of equipment with a market value of S60 thousand on October 1,2018. The new equipment has a useful life of 5 years and is to be depreciated on a straight line basis with a zero salvage value. j) Declared a dividend of $0.10 per share on November 30, 2018, payable to shareholders of record on that date. Will pay the dividend on January 15, 2019. k) I) Collected accounts receivable of $7,600 thousand. m) Paid 572 thousand for property insurance covering the 12 month period beginning December 1, 2018 and ending November 30, 2019
