Question
Year 2 Transaction List: Acquired $550,000 by signing a note payable with a local bank Sold 25,000 shares of $22 Common Stock for $1,500,000 Purchased
Year 2 Transaction List: Acquired $550,000 by signing a note payable with a local bank Sold 25,000 shares of $22 Common Stock for $1,500,000 Purchased Equipment for $300,000 Purchased Inventory on Account - 25,000 Units at $1.15 per unit Sold 15,000 units at $3.50 on Account Record COGS for Sales on Account Collect $70,000 on Account Paid $117,250 of Accounts Payable Purchased Inventory on Account - 170,000 Units at $1.50 per unit Sold 175,000 units at $3.50 on Account Record COGS for Sales on Account Collect $472,500 on Account Paid $218,600 of Accounts Payable Purchased Inventory on Account - 275,000 Units at $1.35 per unit Sold 200,000 units at $3.50 on Account Record COGS for Sales on Account Collect $735,000 on Account Purchased Inventory on Account - 300,000 Units at $1.15 per unit Paid $494,150 of Accounts Payable Paid Sales & Marketing Expenses of $30,000 Paid Operating Expenses of $75,708 Record Wages Payable of $40,000 Paid Product Line Research & Development Expenses of $150,000 Paid Advertising Expenses of $87,500 Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31. Record first year of depreciation expense on equipment purchased in Year 2 with salvage value of $38,000 & useful life of 7 Yrs Declared a $10,000 cash dividend for stockholders Paid a $10,000 cash dividend for stockholders
Please help me correct my balance sheet according to the transactions above. I can't seem to get it to balance. Thanks!!
Events Land Building Accum Depr $ 50,000.00 $ 250,000.00 $ 8.333.00 Balance Sheet Liab Acct Payable Div Payable Notes Payable Wages Payable Common Stock $ 118,000.00 $ 200,000.00 $ $ 550.000 $ 550,000 $ Equity APIC Retained Earnings Account Titles for Retained Earnings 100,000.00 $ 176,167.00 $ $ $ $ 950,000 $ 28,750 $ $ 52.500 (17.250 Sales Revenue Cost of Goods Sold $ S $ I $ 117.250 255,000 Assets Cash Acct Rec Inventory Equipment 257,000.00 $ 17,500.00 $ 28,000.00 550.000 1,500,000 300,000) $ 300,000 $ 28,750 $ 52,500 $ (17.250) 70,000 $ 170,000) (117.250 $ 255,000 $ 612,500 $ 259,000) 472,500 $ 472.500) 218,600) $ 371.250 700.000 $ 270,750) 735,000$ 735,000) 494.150) $ 345,000 30,000) 175,708) (40.000) (150,000) ( (87,500) $ $ 612.500 (259,000) Sales Revenue Costs of Goods Sold $ $ Beginning Balances as of Dec 31, Year 1 Acquired $550.000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 3. Purchased Equipment for $300.000 4. Purchased Inventory on Account - 25.000 Units at $1.15 per unit Sa. Sold 15,000 units at $3.50 on Account Sb. COGS for Sales on Account 5. Collect $70,000 on Account -. Paid $117.250 of Accounts Payable 3. Purchased Inventory on Account - 170,000 Units at $1.50 per unit a. Sold 175,000 units at $3.50 on Account b. COGS for Sales on Account 10. Collect $472.500 on Account 11. Paid $218,600 of Accounts Payable 2. Purchased Inventory on Account - 275,000 Units at $1.35 per unit 3a. Sold 200,000 units at $3.50 on Account 3b. COGS for Sales on Account 14. Collect $735,000 on Account $ 15. Paid $494, 150 of Accounts Payable 16. Purchased Inventory on Account - 300,000 Units at $1.15 per unit 17. Paid Sales & Marketing Expenses of $30,000 18. Paid Operating Expenses of $75,708 19. Record Wages Payable of $40,000 20. Paid Product Line Research & Development Expenses of $150,000 21. Paid Advertising Expenses of $87,500 22. Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31. 23. Record first year of Depreciation on Equipment Purchased in Year 2 with Salvage Value of $38,000 & useful life of 7 Yrs 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Balance at end of Yr 2 $ 218,600.00) $ $ 371.250 $ $ 700,000 270.750) Sales Revenue Costs of Goods Sold $ $ 494,150.00) $ 345,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ 30,000) 175,708) (40.000) 1150,000) (87.500) Marketing Expense Operating Expense Wage Expense Research & Development Expense Advertising Expense $ 188,500) $ (50,000) $ 38,500) Interest Expense $ 37.429.00 $ (37.429.00) Depreciation Expense Dividends $ (10,000) $ 110,000) 1,972,792$ $ 10,000.00 $ 110,000.00) 522.500$ 105,000 $ 481,000$ 300,000 $ 50,000 $ 250,000 $ 45,762.00 $ $ $ 500,000 $ $ 750.000$ 1,050,000 $ 525.030.43Step by Step Solution
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