Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.) CHEYENNE CORP Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Comprehensive Accounting Cycle Review 11-1 (Part Level Submission) Cheyenne Corp,'s balance sheet at December 31, 2016, is presented below CHEYENNE CORP Balance Sheet 31, 2016 27,000 Accounts payable $25,500 Cash Accounts receivable Allowance for doubtful accounts Supplies Land Buildings Accumulated depreciatkon-buildings 45,000 Common stock ($10 par) 8,00 133,700 (1,600) Retained earnings 4,300 40,500 145,000 (21,000) $239,200 $239,200 During 2017, the following transactions occurred 1. On January 1, 2017, Cheyenne issued 1,300 shares of $46 par, 8% preferred stock for $52,400 2. On January 1, 2017, Cheyenne also issued 880 shares of the $10 par value common stock for $25,000 3. Cheyenne performed services for $324,000 on account 4. On April 1, 2017, Cheyenne collected fees of $35,000 In advance for services to be performed from April 1, 2017, to March 31, 2018. 5. Cheyenne collected $275,000 from customers on account. 5. Cheyenne bought $36,000 of supplies on account. 7. Cheyenne paid $32,000 an accounts payable 8. Cheyenne reacquired 420 shares of its comman stock on June 1, 2017, for $25 per share 9. Paid cther operating expenses of $181,000. 10. 11. On December 31, 2017, Cheyenne declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2018. An account receivable of $1,600 which originated in 2016 is written off as uncolectible. Adjustment data: A count of supplies Indicates that $5,B00 of supplies remain unused at year-end 2. Recorded revenue from item 4 above 3. The allowance for doubtful accounts should have a balance of $3,400 at year end 4. Depreciation is recorded on the building on a straight-Ene basis based on a 30-year life and a salvage value of $19,000 S. The income tax rate 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30 to compute the amount.) Your answer is partially correet. Try again. Prepare journal entries for the transactions Ested above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. Cash 52400 Preferred Stock 59800 Paid-in Capital in Excess of Par Value-Preferred 2600 Preferred Stock 59800 Paid-in Capital in Excess of Par Value-Preferred 2600 2. Cash 25000 Common Stock 8800 Paid-in Capital in Excess of Par Value-Common St 16200 3. Accounts Receivable 324000 Service Revenue 324000 4. Cash 35000 Unearned Service Revenue 35000 . Cash 275000 275000 6. Supplies 36000 Accounts Payable 36000 7Accounts Payable 32000 Cash 32000 8. Stock 10500 Cash 10500 9. Other Operating Expenses 181000 Cash 181000 10. Cash Dividends 14936 Dividends Payable 14936 11. Allowance for Doubtful Accounts 1600 Accounts Recevable 1600 Accounts Receivable 1600 Adjusting entries 1. Supplies Expense 31700 Supplies 31700 2. Unearned Service Revenue 26250 26250 Service Revenue 3. Bad Debt Expense 3400 Allowance for Doubtful Accounts 3400 4. Depreciation Expense 4200 Accumulated Depreciation-Buildings 4200 5. Income Tax Expense 39435 Income Taxes Payable 39435 CHEYENNE CORP Adjusted Trial Balance December 31, 2017 Debit Credit 200900 s Receivable 92400 for Doubtful Accounts 3400 upplies 5800 Land 40500 Buildings 145000 ted Depreciation-Buildings 25200 s Payable 29500 Service Revenue 8750 Dividends Payable 14936 Income Taxes Payable 38145 Stock 88800 Paid-in Capital in Excess of Par Value-Common 16200 Preferred Stock 59800 Paid-in Capital in Excess of Par Val Retained Earnings Treasury Stock 2600 133700 10500 Service Revenue 350250 r Operating Expenses 181000 Dividends 14936 upplies Expense Bad Debt Expense Depreciation Expense Income Tax Expense 34500 3400 4200 38145 771281 771281 (c1) [ Your answer is correct. Prepare an income statement. CHEYENNE CORP Income Statement For the Year Ending December 31, 2017 Service Revenue 350250 Operating Expenses 181000 Other Operating Expenses Supplies Expense Bad Debt Expense Depreciation Expense 34500 3400 4200 Total Operating Expenses 223100 Income Before Income Taxes 127150 Income Tax Expense 38145 Net Income/ (Loss) 89005
