Prepare Financial Statements (which also includes journals entries and t-accounts) and Cash Flow Statement
Problems 6-5 Beamer Biz Year 4, 2022, H Paid her beginning accounts payable and received all owed her. Bought 5 Beamers, sold Bought for $48,000 each, sold for $70,000. Bought for 25% down and the other 75% to be paid next year. Sold for 80% down with 20% to be paid next year. Paid workers what she owed them at the beginning plus $4,000 per month for eleven months, owed wages of $4,000 at the end of the year for December. Paid $3,000 for utilities. On January 1, she bought a pre- fabricated building to put on the land she invested in year 2019. The building cost $200,000. It is expected that the building will last ten years and then be worth about 25% of the original cost To buy the building, she took out a $160,000 interest-only mortgage from the bank and used $40,000 of the company's money. She must pay the bank 8% interest at the end of each year on the building's mortgage. The $160,000 will be due 10 years from the date of purchase. She paid the interest on the building's mortgage for Year 4 on December 31. On January 1, 2022 she spent $60,000 on furniture and fixtures for the new building. It is estimated that these items will last 10 years and then be worth 10% of their value. She opened her new location on January 1. (She now operates two locations.) She paid 10 months' rent on her first location at $1,000 per month. She paid Uncle Phil the interest owed on December 31. She paid last years taxes. She paid a dividend of $30,000. She owes 2022 taxes at the end of the year (same rate as last year). (Prepare Financials, which also includes Journal Entries & T- 10 5 9 Problems 6-5 Beamer Biz Year 4, 2022, H Paid her beginning accounts payable and received all owed her. Bought 5 Beamers, sold Bought for $48,000 each, sold for $70,000. Bought for 25% down and the other 75% to be paid next year. Sold for 80% down with 20% to be paid next year. Paid workers what she owed them at the beginning plus $4,000 per month for eleven months, owed wages of $4,000 at the end of the year for December. Paid $3,000 for utilities. On January 1, she bought a pre- fabricated building to put on the land she invested in year 2019. The building cost $200,000. It is expected that the building will last ten years and then be worth about 25% of the original cost To buy the building, she took out a $160,000 interest-only mortgage from the bank and used $40,000 of the company's money. She must pay the bank 8% interest at the end of each year on the building's mortgage. The $160,000 will be due 10 years from the date of purchase. She paid the interest on the building's mortgage for Year 4 on December 31. On January 1, 2022 she spent $60,000 on furniture and fixtures for the new building. It is estimated that these items will last 10 years and then be worth 10% of their value. She opened her new location on January 1. (She now operates two locations.) She paid 10 months' rent on her first location at $1,000 per month. She paid Uncle Phil the interest owed on December 31. She paid last years taxes. She paid a dividend of $30,000. She owes 2022 taxes at the end of the year (same rate as last year). (Prepare Financials, which also includes Journal Entries & T- 10 5 9
