Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $100,000 cash. 2. Purchased $180,000 of merchandise on account. 3. Sold merchandise that cost $160,000 for $318,000 on account. 4. Collected $284,000 cash from accounts receivable. 5. Paid $160,000 on accounts payable. 6. Paid $56,000 of salaries expense for the year. 7. Paid other operating expenses of $72,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $ 20,400 8,500 1,700 1,700 1,700 Percent Likely to Be Allowance Uncollectible Balance 0.01 0.05 0.10 0.20 0.50 Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Reg B Bal Sheet Req B Stmt Cash Flows ReqC 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.) SAGE INC. Accounting Equation for the Year 1 Liabilities + Equity Merchandise Accounts Common + Retained Inventory Payable Stock Earnings Assets NRV Accounts Receivable Event Accounts Titles for Retained Earnings Cash + + 1. 2. + . + + 3b. + + 4. + + = + 5. + + 6. + +1 + 7. 8. + + 0+ Bal. 0 + 0+ 0 = 0+ Req A Req B Inc Stmt > Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $100,000 cash. 2. Purchased $180,000 of merchandise on account. 3. Sold merchandise that cost $160,000 for $318,000 on account. 4. Collected $284,000 cash from accounts receivable. 5. Paid $160,000 on accounts payable. 6. Paid $56,000 of salaries expense for the year. 7. Paid other operating expenses of $72,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $ 20,400 8,500 1,700 1,700 1,700 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.20 0.50 Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Reg C Prepare the income statement for Sage Inc. for Year 1. SAGE INC. Income Statement For the Year Ended Year 1 Operating expenses Total operating expenses Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $100,000 cash. 2. Purchased $180,000 of merchandise on account. 3. Sold merchandise that cost $160,000 for $318,000 on account. 4. Collected $284,000 cash from accounts receivable. 5. Paid $160,000 on accounts payable. 6. Paid $56,000 of salaries expense for the year. 7. Paid other operating expenses of $72,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $ 20,400 8,500 1,700 1,700 1,700 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.20 0.50 Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? Complete this question by entering your answers in the tabs below. Reg A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Reg C Prepare the statement of changes in stockholders' equity for Sage Inc. for Year 1. SAGE INC. Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock Ending common stock $ 0 Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0
