Question
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock for $100,000 cash. Purchased $200,000 of merchandise on account.
Sage Inc. experienced the following transactions for 2018, its first year of operations:
- Issued common stock for $100,000 cash.
- Purchased $200,000 of merchandise on account.
- Sold merchandise that cost $154,000 for $306,000 on account.
- Collected $276,000 cash from accounts receivable.
- Paid $180,000 on accounts payable.
- Paid $48,000 of salaries expense for the year.
- Paid other operating expenses of $64,000.
- Sage adjusted the accounts using the following information from an accounts receivable aging schedule:
| Number of Days Past Due | Amount | Percent Likely to Be Uncollectible | Allowance Balance | ||
| Current | $ | 18,000 | 0.01 | ||
| 030 | 7,500 | 0.05 | |||
| 3160 | 1,500 | 0.10 | |||
| 6190 | 1,500 | 0.20 | |||
| Over 90 days | 1,500 | 0.50 | |||
- Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.)
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Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Sage Inc. for 2018.
Prepare the income statement for Sage Inc. for 2018.
Prepare the statement of changes in stockholders equity for Sage Inc. for 2018.
Prepare the balance sheet for Sage Inc. for 2018. (Be sure to list the assets in the order of their liquidity.)
Prepare the statement of cash flows for Sage Inc. for 2018. (Amounts to be deducted should be indicated with a minus sign.)
- What is the net realizable value of the accounts receivable at December 31, 2018?
Net realizable value:
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