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1. At the end of its first year of operations, the controller of ABC Company compiled the information listed below (in alphabetical order). Prepare a
1. At the end of its first year of operations, the controller of ABC Company compiled the information listed below (in alphabetical order). Prepare a December 2020 income statement, a statement of retained earnings, and a classified balance sheet in good form. You are encouraged to use Excel and copy & paste the statements on the attached blank page or submit a separate Excel document. Accounts payable 36,000 Accounts receivable 24,000 Advertising expense 22,000 Cash 11,000 Common stock 150,000 Dividends (paid in cash) 52,000 Insurance expense 2,000 Maintenance expense 39,000 Notes payable 47,000 Office furniture 15,000 Revenues 217,000 Vehicles 150,000 Wages expense 75,000 Warehouse 60,000 Three friends opened a business that provides bicycling tours to tourists in the Wisconsin "drifless region. Using the attached T-account template (or a spreadsheet with the same level of account level detail) and prepare entries to record the following transactions. 2. May 1 Three friends each invested $10,000 cash in exchange for common stock. May 2 The company paid $19,000 for a small fleet of bicycles. May 3 The company bought supplies costing $1,500 on credit. May 4 The company paid $500 cash for the first month's office/storage space rent. May 5 The company paid $1,800 cash for a six-month insurance policy. May 10 The company gave a potential client a 30-mile tour and immediately received $125 cash. May 12 The company provided a $3,500 group 5-day tour on credit. The customer agreed to pay within 10 days. May 19 The company paid for the supplies originally purchased on May 3. May 22 The company receives payment on the account from the client entry on May 12. May 25 The company received $2,750 cash for a 4-day tour completed that day. May 31 The company paid a crew member a salary of $1,000. May 31 The company paid $3,000 in cash dividends. 3
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