Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3-70A Part I Comprehensive Problem: Reviewing the Accounting Cycle 24,600 and Tarkington Freight Service provides delivery of merchandise to retail grocery stores in the

image text in transcribed
Problem 3-70A Part I Comprehensive Problem: Reviewing the Accounting Cycle 24,600 and Tarkington Freight Service provides delivery of merchandise to retail grocery stores in the Northeast. At the beginning of 2019, the following account balances were available: Cash $92,100 Accumulated Depreciation Accounts receivable 361,500 (Equipment) $580,000 Supplies 304,975 Prepaid Advertising Accounts Payable 17,600 Building Wages Payable 30,200 Accumulated Depreciation Notes Payable (due in 2023) 1,000,000 (Building) 280,000 Common Shares 1,400,000 Equipment 795,000 Retained Earnings, 12/31/2018 462,375 During 2019 the following transactions occurred: a. Tarkington performed deliveries for customers, all on credit, for $2,256,700. Tarkington also made cash deliveries for $686,838. b. There remains $286,172 of accounts receivable to be collected at December 31, 2019. c. Tarkington purchased advertising of $138,100 during 2019 and debited the amount to prepaid advertising d. Supplies of $27,200 were purchased on credit and debited to the supplies account e. Accounts payable at the beginning of 2019 were paid early in 2019. There remains $5,600 of accounts payable unpaid at year f. Wages payable at the beginning of 2019 were paid early in 2019. Wages were earned and paid during 2019 in the amount of $666,142. 9. During the year, Trish Hurd, a principal stockholder, purchased an automobile costing $42,000 for her personal use. h. One-half year's interest at 6% annual rate was paid on the note payable on July 1, 2019. Problem 3-70A Part I Comprehensive Problem: Reviewing the Accounting Cycle 24,600 and Tarkington Freight Service provides delivery of merchandise to retail grocery stores in the Northeast. At the beginning of 2019, the following account balances were available: Cash $92,100 Accumulated Depreciation Accounts receivable 361,500 (Equipment) $580,000 Supplies 304,975 Prepaid Advertising Accounts Payable 17,600 Building Wages Payable 30,200 Accumulated Depreciation Notes Payable (due in 2023) 1,000,000 (Building) 280,000 Common Shares 1,400,000 Equipment 795,000 Retained Earnings, 12/31/2018 462,375 During 2019 the following transactions occurred: a. Tarkington performed deliveries for customers, all on credit, for $2,256,700. Tarkington also made cash deliveries for $686,838. b. There remains $286,172 of accounts receivable to be collected at December 31, 2019. c. Tarkington purchased advertising of $138,100 during 2019 and debited the amount to prepaid advertising d. Supplies of $27,200 were purchased on credit and debited to the supplies account e. Accounts payable at the beginning of 2019 were paid early in 2019. There remains $5,600 of accounts payable unpaid at year f. Wages payable at the beginning of 2019 were paid early in 2019. Wages were earned and paid during 2019 in the amount of $666,142. 9. During the year, Trish Hurd, a principal stockholder, purchased an automobile costing $42,000 for her personal use. h. One-half year's interest at 6% annual rate was paid on the note payable on July 1, 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Expert Fraud Investigation A Step By Step Guide

Authors: Tracy Coenen

1st Edition

0470387963, 978-0470387962

More Books

Students also viewed these Accounting questions