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The following post-closing trial balance was drawn from the accounts of Hardwood Timber Co. as of December 31, 2013: Debit Credit Cash $ 6,360 Accounts

The following post-closing trial balance was drawn from the accounts of Hardwood Timber Co. as of December 31, 2013:

Debit Credit

Cash $ 6,360

Accounts receivable 18,780

Allowance for doubtful accounts $ 2,105

Inventory 22,620

Accounts payable 10,255

Common stock 19,300

Retained earnings 16,100

Totals $ 47,760 $ 47,760

Transactions for 2014

1. Acquired an additional $11,200 cash from the issue of common stock.

2. Purchased $58,400 of inventory on account.

3. Sold inventory that cost $61,500 for $96,100. Sales were made on account.

4. Wrote off $1,310 of uncollectible accounts.

5.
On September 1, Hardwood loaned $10,000 to Pine Co. The note had a 9 percent interest rate and a one-year term.

6. Paid $15,600 cash for salaries expense.

7. Collected $71,150 cash from accounts receivable.

8. Paid $50,030 cash on accounts payable.

9. Paid a $4,500 cash dividend to the stockholders.

10. Estimated uncollectible accounts expense to be 3.50 percent of sales on account.

11. Recorded the accrued interest at December 31, 2014.

References

Section BreakExercise 5-13 Comprehensive single-cycle problem LO 5-2, 5-4

9.

value: 20.00 points

Required information

Exercise 5-13 Part a

Required

a.
Organize the transaction data in accounts under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)

HARDWOOD TIMBER CO.

Accounting Equation for the Year 2014

Event Assets = Liabilities + Stockholders Equity Accounts Titles for Retained Earnings

Cash + Accounts Receivable Allowance + Merchandise Inventory + Notes Receivable + Interest Receivable = Accounts Payable + Common Stock = Retained Earnings

Bal. + + + + = + =

1. + + + + = + =

2. + + + + = + =

3a. + + + + = + =

3b. + + + + = + =

4. + + + + = + =

5. + + + + = + =

6. + + + + = + =

7. + + + + = + =

8. + + + + = + =

9. + + + + = + =

10. + + + + = + =

11. + + + + = + =

Bal. + + + + = + =

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Previous Question Next Question

		Debit		Credit
Cash	$	6,360
Accounts receivable		18,780
Allowance for doubtful accounts			$	2,105
Inventory		22,620
Accounts payable				10,255
Common stock				19,300
Retained earnings				16,100

Totals	$	47,760	$	47,760

1.	Acquired an additional $11,200 cash from the issue of common stock.
2.	Purchased $58,400 of inventory on account.
3.	Sold inventory that cost $61,500 for $96,100. Sales were made on account.
4.	Wrote off $1,310 of uncollectible accounts.
5.	On September 1, Hardwood loaned $10,000 to Pine Co. The note had a 9 percent interest rate and a one-year term.
6.	Paid $15,600 cash for salaries expense.
7.	Collected $71,150 cash from accounts receivable.
8.	Paid $50,030 cash on accounts payable.
9.	Paid a $4,500 cash dividend to the stockholders.
10.	Estimated uncollectible accounts expense to be 3.50 percent of sales on account.
11.	Recorded the accrued interest at December 31, 2014.