Roma Inc, a merchandising company, has begun its business since 1 Jan. 2017.

The selected information from the accounting records on 1 April 2021 is as follows.

• The account of Retained Earnings has a credit balance of $224,000.
• The company uses the perpetual inventory system and the LIFO method for its inventory, reporting the beginning inventory as follows:

400 units at a per-unit cost of $30 (purchased on 20 Mar. 2021)

600 units at a per-unit cost of $34 (purchased on 28 Mar. 2021)

• The company has the following data of the non-current, tangible assets.

Asset	Original Cost	Residual Value	Estimated Life	Depreciation Method
Machine A (purchased on 1 Jan. 2017	$32,000	$4,000	5 years	Straight-line
Machine B (purchased on 1 Jan. 2021)	36,000	3,500	5 years	Double-declining balance

• The following is the information of stock that a company has in the accounting system on

1 April 2021.

Preferred Stock: 8% cumulative, $10 par value, 20,000 shared authorized, 5,000 shared issued and outstanding	$50,000
Additional Paid in Capital, Preferred Stock	$40,000
Common Stock: $5 par value, 50,000 shares authorized, 40,000 shares issued and outstanding	$200,000
Additional Paid in Capital, Common Stock	$80,000

The following transactions occurred in April 2021.

1 Apr.	Purchased a building and a truck for $122,000; a promissory note was signed. The appraisal values are: $96,000 for the building and $24,000 for the truck.
1 Apr.	Sold Machine A (purchased on 1 Jan. 2017) for $12,000 cash. Assume that the related depreciation expense was already recorded before it was sold.
4 Apr.	Issued 5,000 shares of preferred stock at a price of $22 per share.
6 Apr.	Sold 700 units of inventory at a per-unit selling price of $75 with terms 5/15, n/60.
8 Apr.	Wrote off a $2,600 customer’s account balance, using the allowance method.
10 Apr.	Repurchased 8,000 shares of common stock for $15 per share.
12 Apr.	Purchased an additional 800 units of inventory from a supplier on account at a per-unit cost of $38, with terms 6/10, n/45.
14 Apr.	Collected payment from the credit sales recorded on 6 April.
17 Apr.	Return 200 units of inventory purchased on 12 April.
18 Apr.	Issued 3,000 shares of treasury stock for $18 per share.
20 Apr.	Sold 700 units of inventory at a per-unit selling price of $82 by cash.
24 Apr.	Made payment for the credit purchase on 12 April.
29 Apr.	Paid $29,800 of operating expenses.
30 Apr.	Declared dividends in the amount of $15,000, to be paid in May 2021.

Additional information for adjustments

1. To depreciate the building purchased on 1 April 2021, the company uses the straight-line method over 20 years, with a residual value of $7,600. For the truck purchased on 1 April 2021, the company uses the units-of-production method. The company expects to use it for a total of 140,000 kilometers, with a residual value of $4,400. It was used for 2,800 kilometers in April.

2. The company uses the Aging of Accounts Receivable method to estimate bad debts. The company has the following information of Accounts Receivable as at 31 April 2021.

Number of Days Past-due
1 - 30	31 - 60	61-90
Accounts Receivable	$65,000	$32,000	$9,000
Estimated Uncollectible %	3%	5%	9%

Before the adjustment is recorded, the Allowance for Doubtful Accounts has a $1,660 credit balance.

Instruction:

1. Prepare journal entries to record the transactions in April 2021.
2. Prepare to adjust entries to record the depreciation expenses and estimated bad debts on 30 April 2021 (for April adjustments).
3. Calculate the number of Net Accounts Receivable as of 30 April 2021.
4. Prepare the section of Stockholders’ Equity to be reported on the Balance Sheet as at