Question
The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title Cash $ 160,000
The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title Cash $ 160,000 Accounts receivable 135,000 Allowance for doubtful accounts $ 23,000 Inventory 445,000 Accounts payable 105,000 Common stock 500,000 Retained earnings 112,000 Tile, Etc. had the following transactions in 2018: Purchased merchandise on account for $630,000. Sold merchandise that cost $470,000 for $990,000 on account. Sold for $295,000 cash merchandise that had cost $180,000. Sold merchandise for $240,000 to credit card customers. The merchandise had cost $116,000. The credit card company charges a 4 percent fee. Collected $720,000 cash from accounts receivable. Paid $660,000 cash on accounts payable. Paid $155,000 cash for selling and administrative expenses. Collected cash for the full amount due from the credit card company (see item 4). Loaned $60,000 to J. Parks. The note had an 8 percent interest rate and a one-year term to maturity. Wrote off $8,500 of accounts as uncollectible. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, 2018 (see item 9). Required- Organize the transaction data in accounts under an accounting equation. Prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for 2018.
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