Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Roth Incorporated experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $250,000 of merchandise on

Roth Incorporated experienced the following transactions for Year 1, its first year of operations:

Issued common stock for $80,000 cash.

Purchased $250,000 of merchandise on account.

Sold merchandise that cost $156,000 for $310,000 on account.

Collected $262,000 cash from accounts receivable.

Paid $235,000 on accounts payable.

Paid $54,000 of salaries expense for the year.

Paid other operating expenses of $43,000.

Roth adjusted the accounts using the following information from an accounts receivable aging schedule.

image text in transcribed

b. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Roth Incorporated for Year 1.

NumberofDaysPastDueCurrent0to3031to6061to90Over90daysPercentLikelytoBeAmount$28,80012,0002,4002,4002,400AllowanceUncollectible0.010.050.100.200.50Balance

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

Step: 3

blur-text-image

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

Democratic Audit Of Poland 2014

Authors: Radoslaw Markowski, Michal Kotnarowski, Michal Wenzel, Marta Zerkowska-Balas

1st Edition

3631656912, 978-3631656914

More Books

Students also viewed these Accounting questions