Problem 3-70A Part I Comprehensive Problem: Reviewing the Accounting Cycle 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 24,600 Land 304,975 Prepaid Advertising 2,000 Accounts Payable 17,600 Building 2,190,000 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 $636,838. 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 end. 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. 1. Property taxes were paid on the land and buildings in the amount of $170,000. 1. Dividends were declared and paid in the amount of $25,000. Problem 3-70A Part I Comprehensive Problem: Reviewing the Accounting Cycle 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 24,600 Land 304,975 Prepaid Advertising 2,000 Accounts Payable 17,600 Building 2,190,000 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 $636,838. 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 end. 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. 1. Property taxes were paid on the land and buildings in the amount of $170,000. 1. Dividends were declared and paid in the amount of $25,000