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The unadjusted pre-closing 12/31/23 account balances for the Mahoney Company are listed below. Net Sales $10,625 Net Purchases 8,991 Selling Expenses 430 Cash 369 Machines

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The unadjusted pre-closing 12/31/23 account balances for the Mahoney Company are listed below. Net Sales $10,625 Net Purchases 8,991 Selling Expenses 430 Cash 369 Machines 6.619 Accumulated Depreciation Machines 2,191 Accounts Payable 1.236 Retained Earnings 4,182 Allowance for Doubtful 54 Accounts Building 4,400 Accumulated Depreciation, 429 Building Common Stock 5,000 Accounts Receivable 1045 Depreciation Expense, 913 Machines Inventory @ 1/1/23 (periodic 950 method used) During your audit, you discover the following five items that have yet to be recorded 1. No depreciation on the building has been recorded in 2023 Depreciation on the building is based on Double-Declining Balance. It was purchased on 1/1/21 and has an estimated useful life of 40 years. The estimated salvage value is 5700 2. Maboney exchanged a machine for a similar machine on 12/31/23. The original machine cost $3.900 and had a book value of $2.470. The new machine had a fair value of $2,844: Mahoney also received $316 in cash. The exchange did not have commercial substance. 3. Mahoney also exchanged its only other machine for a different machine on 12/31.2 The orginal machine cost $2.719 and had a book value of $1.956 The fair value was 52,125. Mahoney paid cash of $487 as well. The exchange did not have commercial substance 4. Mahoney uses the Balance Sheet approach to adjust Accounts Receivable to Net Realizahle Value At 1231/23. uncollectible receivables are estimated to be 6.5% of Accounts Receivable 5. Ending Inventory is to be estimated using the Gross Profit Method. The historic Gross Profit percentage is 17.8% Required Record journal entries for items #4 above show supporting computations. In addition, compule ending inventory per 5 above; show supporting computations Then make the adjusting closing journal entry to close Purchases, adjust Inventory, and record CGS Do not show other closing entries, assume they were made property b. Draft the 2023 Condensed Income Statement and the 12/31/23 Balance Sheet. Use the Cabrera (Textbook Illustration 4-3 in Chapter 4) and the Uptown Cabinet (Textbook Illustration 3-41 in Chapter 5) format examples in the text. Assume no taxes. Do not include EPS

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