Show journal entries or T accounts for results of 2021 operations
The following is information for ABC - a publicly traded company Statement of Chances in Stockholders Eauitv - 2020 Results for 2021 Sales $281,300 All sales on credit Inventory Purchases on credit =191,400 and ending inventory $56200 (you calculate COGS) Depreciation expense $16,000 not including assets sold, bought or found Patent purchased in 2018 and determined to have remaining useful life of 10 years in 2021 Wages Expense $27,450 Paid in cash $2,194 additional owed at end of 2021 Insurance policy indicates that $5,700 was paid in May 2020 for 24 month coverage starting May 12020. During 2021 found an asset purchased and recorded in 2018 that had not been depreciated - cost 6,230 no salvage 10 year useful life (an error) Sold AFS Debt Securities that cost 400 for 390 in cash ( $7 loss in AOCl recorded previously) Sold equipment that cost 3,000 with accumulated depreciation of 2,690 for $200 in cash. Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1,2021 (first payment due January 1,2022 ) 10 year useful life and no salvage Collections on A/R=275,320 Payments on A/P=176,500 - all accounts payable deal with inventory All service agreements sold to customers in 2020 completed in 2021. New service agreements sold for $2460 in cash during 2021 - 40 percent of the services provided during 2021 Bond terms - interest only for 6.5% paid annually on September 1. Firm agreement with a bank signed on December 15 to refinance bond to a 5 year note in 2022 Note Payable - 4 payments of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year (2\% per quarter) Each note payment pays the interest since the last payment with any remaining amount going toward principle Fair value of remaining AFS Debt Securities $1,400 Other Information Tax rate is 21% (unlike 2020 income taxes have not been paid) Half year convention for depreciation The following is information for ABC - a publicly traded company Statement of Chances in Stockholders Eauitv - 2020 Results for 2021 Sales $281,300 All sales on credit Inventory Purchases on credit =191,400 and ending inventory $56200 (you calculate COGS) Depreciation expense $16,000 not including assets sold, bought or found Patent purchased in 2018 and determined to have remaining useful life of 10 years in 2021 Wages Expense $27,450 Paid in cash $2,194 additional owed at end of 2021 Insurance policy indicates that $5,700 was paid in May 2020 for 24 month coverage starting May 12020. During 2021 found an asset purchased and recorded in 2018 that had not been depreciated - cost 6,230 no salvage 10 year useful life (an error) Sold AFS Debt Securities that cost 400 for 390 in cash ( $7 loss in AOCl recorded previously) Sold equipment that cost 3,000 with accumulated depreciation of 2,690 for $200 in cash. Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1,2021 (first payment due January 1,2022 ) 10 year useful life and no salvage Collections on A/R=275,320 Payments on A/P=176,500 - all accounts payable deal with inventory All service agreements sold to customers in 2020 completed in 2021. New service agreements sold for $2460 in cash during 2021 - 40 percent of the services provided during 2021 Bond terms - interest only for 6.5% paid annually on September 1. Firm agreement with a bank signed on December 15 to refinance bond to a 5 year note in 2022 Note Payable - 4 payments of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year (2\% per quarter) Each note payment pays the interest since the last payment with any remaining amount going toward principle Fair value of remaining AFS Debt Securities $1,400 Other Information Tax rate is 21% (unlike 2020 income taxes have not been paid) Half year convention for depreciation
