Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

World Series Inc. Statement of Financial Position As of December 31, 2018 ASSETS LIABILITIES Cash 445,000 Ace. Rec. 35,000 Inventory 70,000 Supplies 600 Building S400,000

image text in transcribed
image text in transcribed
World Series Inc. Statement of Financial Position As of December 31, 2018 ASSETS LIABILITIES Cash 445,000 Ace. Rec. 35,000 Inventory 70,000 Supplies 600 Building S400,000 Ace. Depr. (7,600) 392,400 Land 28,000 Note Payable 6% $10,000 Ace. Payable 24,000 Mortgage Payable 296,000 Total Liabilities $330,000 STOCKHOLDER EQUITY Total Assets $971,000 Common Stock $2 Par Excess of Par Retained Earnings 120,000 80,000 441,000 Total Equity $641,000 Total Liability & Equity $971,000 Jan. 1- Purchased Equipment for $180000. World Series Inc. paid $10,000 as a down payment and an 8% note signed for the balance of the purchase price. This equipment has a useful life of five years. Jan. 3 - Advertising expense contract was entered into this date but the contract period covered two years. Total cash payment was $30,000. Advertising campaigns for World Series products placed on Facebook sites throughout the two-year period of the contract. Jan. 5- A two-year insurance policy secured for $12,000. A cash payment made and the policy effective period was January 1, 2019 to December 31, 2020. Jan. 31 - January's mortgage payment of $10,000 paid. Rate of interest was at a fixed rate of 10%. Jan. 31 - Sold on account, various finished goods to customers for $200,000. Terms were 9/60 net 90. Cost of goods sold not accounted for at this date. Feb. 1 - 570,000 of salary paid in cash. Paid the monthly note payment of $10,000 for the note created on January 1, 2019. Feb. 4-A customer returned $8,000 of merchandise: the customer's account was credited for the entire purchase price of $8,000. World Series sold 300,000 shares of common stock at $7 per share. Cash was sent to company's bank account by the investment broker this date. 10. Feb. 12 - Purchased $64,000 worth of inventory only $5,000 paid at the time of purchase. Feb 20 - Sold additional shares of common stock for $12 per share. 12. Feb 28 - $10,000 monthly payment made on the note created on Jan. 1. Mar. 1 -Received full payment for the goods sold on January 31. Mar. 5-Paid in full the amount due for the inventory acquired on February 12. 15. Mar. 10 - Sales to customers were $60,000 and terms were 10/30 net 60. Payment was made in cash at this date. 16. Mar. 20 - Declared a dividend of 50 cents per share. Mar. 30 - End of the year supply inventory was $100. Mar. 30 - End of the year merchandise inventory was $50,000. Mar. 30 - Income Tax Rate was 20%. 20. Building has a 20-year useful life. PREPARE THE: Income Statement; Statement of Retained Earnings; Statement of Financial Position (Balance Sheet for the QUARTER ENDING 3/31/19

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Timothy J. Ph.D. Robertson, Jack C.; Louwers

9th Edition

0072906952, 9780072906950

More Books

Students also viewed these Accounting questions

Question

=+Show photos of consumers?

Answered: 1 week ago

Question

=+Exhibit children's artwork?

Answered: 1 week ago

Question

=+What kind of product or service would work in these locations?

Answered: 1 week ago