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[The following information applies to the questions displayed below) Sage Inc. experienced the following transactions for Year 1, its first year of operations. 1. Issued
[The following information applies to the questions displayed below) Sage Inc. experienced the following transactions for Year 1, its first year of operations. 1. Issued common stock for $120,000 cash. 2. Purchased $190,000 of merchandise on account 3. Sold merchandise that cost $154,000 for $306,000 on account. 4. Collected $272,000 cash from accounts receivable, 5. Paid $170,000 on accounts payable. 6. Paid $52.000 of salaries expense for the year. 7. Paid other operating expenses of $68,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current @-30 31-60 61-99 Over 90 days Amount $2,400 8,500 1.700 1,700 1,700 Percent Likely to Be Uncollectible 0.01 0.05 3.10 0.20 0.50 b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet and statement of cash flows for Sage Inc for Year 1
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