prepare entries in general journal form and of the transactions on the previous page and for the adjusting entries on the next page. Just use the letters to represent the dates of the transaction.
| Net Sales | | | | 1,586,590 |
| Cost of Goods Sold | | | 742,410 |
| | Wages Payable | | 6,960 |
| | Interest Payable | | 4,000 |
| Income Tax Payable | | 67,959 |
C. e. a. Purchased merchandise for $780,600 on account. Assume a perpetual inventory system b. Sold merchandise for $1,663,200. Of the total sales, 60% were on account. Assume a FIFO flow of inventory which included all of last year's inventory and 80% of this year's purchases (in transaction "a."). Collected $943,874 of accounts receivable. d. Wrote off $8,205 of old, past due accounts receivable. Sold 3,000 shares of common stock on April 1, 2021, for $32.00 per share in cash. f. Paid off $718,257 of accounts payable. g. Paid $34,258 for advertising for this year. h. Paid wages of $294,287 during the year. This amount included the wages owed at the end of 2020. i. Bought stock in Excellent Company for $9,500 in cash. Your company has no plans to sell the shares of stock in the next few years. Paid utilities of $86,374 during the year. k. Paid S16,000 for a patent. Paid $39,100 of rent throughout the year. m. Sold equipment for $13,586 in cash. The equipment originally cost $51,050 and had a book value of $14,110 at the time of the sale. Paid $24,000 of interest on the bonds payable. This amount included the interest owed at the end of 2020 Paid income taxes for 2020 (last year). Paid $62,580 for insurance, 9. Declared a $2.00 per share cash dividend for the common stockholders on December 1, 2021, (based upon the number of shares outstanding on December 1). The dividends were paid on December 19, 2021. 1. n. 0. P. *****Continued on the back of this page***** Information for Adjusting Journal Entries for December 31, 2021: T. S. u. Recorded $84,943 of depreciation on the equipment Amortized $6,000 of the copyright and $2,000 of the patent. t. Estimated bad debts as one half of one percent of gross sales. Accrued wages of $3,829 on December 31. V. Amortized $3,800 of the discount on bonds payable. w. Of the insurance paid in part "p." on the previous page, 58,600 is for 2022 (NEXT year). X Accrued $4,000 of interest on the bonds payable Estimated income taxes for the year of 2021. Assume a newly enacted 32% income tax rate for this year on all items. You will have to prepare the income statement for 2021 in order to determine the amount of income tax. y
