use numbers to answer part of income statement

B 18 Pets' Choice 19 Statement of R/E, as of 3/31/2018 20 21 R/E, 1/1/2018 22 Net income 23 Cash dividend 24 R/E, 3/31/2018 25 26 Pets' Choice 27 Balance Sheet, as of 3/31/2018 28 Current Assets 29 Cash 30 A/R 31 Inventory 32 Prepaid Insurance 33 Total current assets 34 NonCurrent Assets 35 Land 36 Building 37 less: Accumulated Depreciation 38 2,846,625 39 40 Total Assets 41 42 Current liabilities 13 AP 44 Salaries Payable 45 Interest payable 46 Utilities Payable 47 Income taxes payable 48 NonCurrent Liabilities 49 Notes Payable 50 Stockholders' Equity 51 Retained Earnings 52 Common Stock 53 Additional Paid-in 54 55 Total Liabilities and Stockholders' Equity 56 2846625 57 58 Q3 BSO for 04-07 cash Correct Common Stock 1,500,000 Correct Correct 150000 Correct Additional Puid.in Cipit Correct 1,350,000 Correct an leave the notes empty 3. Borrow $1 million loan from the bank. Interest on this 10-year loan is 5% per annum. Cash Correct 1,000,000 Correct 1,000,000 Correct Cr: Notes payable Correct 18. Pay $1.5 million for land (1 million) and building (0.5 million). Set up a 20-year straight-line depreciation schedule for building l value of the building is 0.1 million Land Correct Correct Correct 1,000,000 500,000 Building Correct Cr Cash Correct 1,500,000 Correct 2018. Purchase 1-year liability insurance for 52,100, effective from 1/1/2018 Correct Prepaid Insurance 2,100 Correct Caschi Correct 2,100 Correct 2018, Purchase $250,000 worth of inventory. Pay down now Correct 250,000 Correct Inventory Cr Cash Correct 125,000 Correct 125,000 Correct Accounts Payable Correct *12/2017 Pay the remaining 125,000 due in TS De Correct Correct Account Payable 125,000 Cash Correct 125,000 Correct Dr Correct 150,000 Correct Cash CH Correct Sales Revenue Correct 150,000 Correct 2/2018 Receive utility bill for lanuary, totaling 51 850 De Utilities Expense Correct 1,850 Correct Cr: Utilities l'ayable Correct 1.850 Correct 2/6/2018. Take an order from customer for 524,000 of pet food No journal entry recorded, since the order hasn't been shipped yet 22/7/2018. Pay January utility bill 1,850 Correct Correct Dr Correct Utilities Payable Cr Correct 1,850 Correct Cash 1. 2/1/2018 Ship and invoice customer for 524,000 of pet food ordered in T9 above, Shipping fee is on customer 24,000 Correct Dr: Correct Accounts Receivable 24,000 Correct Or Correct Sales Revenue 12. 2/12/2018 Receive payment of $24,000 for shipment made in T11. 24,000 Correct Dr Correct Accounts receivable Cush ch 24,000 Correct Correct 13. 2/15/2018 Pwy alespersons' first month wages of $13.500 (three persons, $150 per day, 30 days) Salespersons started their jobs on 1/16/2018 13,500 Correct Correct Dr expense 13.500 Correct Correct Cr Cash 18. Receive and ship an order from customer for $36,000. Customer promises to pay the amount within 10 days Shipping fee is paid by customer 36,000 Correct Accounts Receivable Cr: Correct Sales Revenue Correct 36,000 Correct 018. Total cash sales during the month is $168,000. Cash Correct 168,000 Correct Cr: Sales Revenue Correct 168,000 Correct 018. Receive and pay February utility bill of $1,900. Utilities expense Correct 1,900 Correct Cr: Cash Correct 1,900 Correct /2018. Declare a $0.3 per share dividend and pay to common shareholders (There are a total of 200,000 shares outstanding) Cash dividend Correct 60,000 Correct Cr: Cash Correct 60,000 Correct salespersons' first month wages of $12,600 (three persons, $150 per day, 28 days) Correct 12,600 Correct Salaries Expense Cr: Cash Correct 12,600 Correct 1/2018. Total cash sales during the month is $184,000. There is no credit sale during March Correct Cash 184,000 Correct Cr: Sales revenue Correct 184,000 Correct fx C D E F G ag Cost of Goods Sold. Calculate cost of goods sold based on "Purchased inventory" (in Transaction 5) and "Ending inventory" (see AC COGS Correct 170,000 Correct Inventory Correct 170,000 ding depreciation expense of the building for the first quarter. (Calculate 3 months'depreciation expense based on info. in Transact Depreciation expense Correct 5,000 Correct Accumulated Depreciation Correct 5,000 ording interest expense for the first quarter (calculate 3 months'interest expense based on Transaction #2) Interest Expense Correct 12,500 Correct Interest Payable Correct 12,500 ding insurance expense for the first quarter (Calculate 3 months'insurance expense based on Transaction #4) Insurance Expense Correct 525 Prepaid Insurance Correct ding income tax expense for the first quarter (see Additional info.) Correct 9,600 Correct Income tax payable Correct arding salary expense for March (3 persons, 16 days, $150 per day) 7,200 Salaries expense Correct Salaries payable Correct ording utility expense for March (see Additional info.) 1,700 Correct Utility expense Correct 1,700 Correct Utility payable Correct 525 Income tax expense 9,600 Correct 7,200