Project Number: T34

Ace is a local company sales computers to schools, municipalities and also provides IT services. During the year, accounting events are the following:

• On Jan. 2,

• On Jan. 14,

  $42,500

• On Jan. 25,

• On Feb. 14,

  notes payable

• On Feb. 28,

  the prior year

• On March 15,

  $306,000

• On Apr. 1,

• On May 3,

Ace paid three year rent in advance with a total amount of $145,860 Ace paid out salary owed to employees for the prior year in the amount of

stockholders invested additional $68,000 cash into the company Ace purchased office equipment costing $68,000 by signing a 6month, 10%

Ace performed IT service of $20,400 for a client which was contracted during Ace sold computers and software in the amount of $122,400 on account for

Ace collected cash for inventory previously sold for $351,900 Ace purchased Inventory in the amount of $680,000 on account Ace received cash in advance for the maintenance service contract in the

On May 31, amount of $1,224,000, out of which $918,000 was performed this year

• On June 4, $1,387,200

• On July 1,

• On Aug. 14,

• On Sept. 1,

Ace sold computers and software in the amount of $578,000 on account for

Ace partially paidoff inventory purchased on May 3 in the amount of $646,000 Ace paid off the notes payable of $68,000 borrowed on Feb. 14 plus interest Ace sold an equipment with original cost of $93,500 and accumulated

depreciation of $40,800 for $65,875

• On Oct. 1,

• On Nov. 1,

• On Nov. 15,

Ace renewed the yearly insurance policy for $44,880 which expired on Sept. 30 Ace collected cash for inventory previously sold for $1,248,480 Ace decided that the bad debt expense for the entire year is $59,500, and wrote

off $47,600 from account receivable Over the entire year,

• Salary and wage expense are $510,000, of which $469,200 was paid

• Depreciation expense is $14,875

• Additional interest expense is $2,000, of which $1,800 was paid

• Supply expense is $29,920

• Income tax expense is $612,000, of which $520,200 was paid

• Ace declared and paid cash dividend in the amount of $38,930

Beginning Balance Sheet (T34, January 1)

Assets

Cash Accounts Receivable

Less: Allowance for doubtful accounts Net accounts receivable

Inventory Supplies

Prepaid Insurance

Prepaid Rent

PPE Less: Accumulated depreciationequipment

Net equipment Total assets

Liabilities and Stockholders' Equity

Liabilities and Stockholders' Equity Accounts Payable Interest payable Salary Payable

Unearned Revenue

Income tax payable

Notes payable Total liabilities

Stockholders' equity Common Stock Retained earnings

Total Liabilities and stockholders' equity

119,000 5,100

170,000 51,000

243,100

113,900 136,000 37,400 30,600

119,000 680,000

85,000 5,440 42,500 27,200

136,000 296,140

306,000 77,860

680,000

Make a balance sheet and statement of stockholders equity