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What are all of the journal entries, income statement, and balance sheet for this question? 6. Assuming in its first year of operations in 2018,
What are all of the journal entries, income statement, and balance sheet for this question?
6. Assuming in its first year of operations in 2018, that ABC issued 100,000 shares of 3.00 par stock to an investor for $1,500,000. On January 2. ABC issued bonds with a face of 200.000, stated rate of 9% term 5 years and received cash of either $195,000 or $205,000. Market Rate is 10%. Interest is paid every January 1 On March 1, ABC financed machinery. The cost of the machinery was $200,000. ABC financed this through a long-term note that charges interest of 8%. The interestis payable each January 1 starting next year. The $200.000 is to be paid back on January 1 of the 5th year. ABC acquired an investment in stock of another company for $50.000. The investment did not change in value at 12/31 ABC purchased inventory on credit throughout the year. The inventory purchases were on 1/20/18-20,000 units at $2.80/unit: on 6/1 10.000 at $3.50/unit: and finally, on 9/1 they purchased 40,000 units at $5.00/unit. ABC uses LIFO perpetual method for accounting for inventory. On 3/1 ABC sold 5,000 units at a total price of $160/unit on credit. On 6/2 ABC sold 8,000 units at a total price of $180/unit on credit On 12/1 ABC sold 20,000 units at a total price of S140/uniton credit ABC received $1,500,000 of cash for credit sales and wrote off $40,000 as bad debts at year-end. Assuming that ABC uses the aging method and that the aging method determined that 80% of its ending balance of AR is current with a 2% likely uncollectible rate: and that 20% of the ending balance is noncurrent with a likely 20% uncollectible rate ABC purchased $250.000 worth of supplies on credit. By year-end only 20% of supplies remained. ABC received $800,000 of cash in advance for delivery of 5,000 units of inventory. This inventory will be delivered January of next year. ABC had depreciation expense related to the machinery of $10.000. Paid cash for rent (all of it is expense) of $20,000. Total salary expense was $1.200.000: of which 1,000,000 was paid in cash and ABC owed the remainder at year-end. ABC paid down 45 of its A/P with cash. ABCincorporates the Lower of Cost or Market in determining ending inventory Assume that the lower of cost or market value of the inventory suggested a value of $80.000 Accrue income tax at a rate of 21%. ABC received $1.000 in dividends. ABC pad $23.000 in dividends to its owners Please ALLIES (including closing) prepare an Income Statement and a Balance Sheet based on the above information only for 12/31/18 (Weight = 60%) INSRT STD
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