Question
Your Name, Inc. Balance Sheet 12/31/2017 Current Assets Cash$17,000 Marketable Securities (Short-term)2,000 Accounts Receivable14,000 Allowance for Bad Debt(2,000) Inventory15,000 Prepaid Insurance 5,000 Total Current Assets$51,000
Your Name, Inc.
Balance Sheet
12/31/2017
Current Assets
Cash$17,000
Marketable Securities (Short-term)2,000
Accounts Receivable14,000
Allowance for Bad Debt(2,000)
Inventory15,000
Prepaid Insurance5,000
Total Current Assets$51,000
Property, Plant, and Equipment
Land$30,000
Building 150,000
Accumulated Dep. - Building(45,000)
Equipment 100,000
Accumulated Dep. - Equipment(20,000)
Total PPE$215,000
Total Assets$266,000
Current Liabilities
Accounts Payable$9,000
Unearned Revenue2,000
Income Taxes Payable3,000
Total Current Liabilities$14,000
Long-term Liabilities
Bonds, 10%, due in 2022$100,000
Equity
Common Stock $ 50,000
(100,000 authorized, 50,000 issued)
Additional Pd.-in Capital80,000
Retained Earnings22,000
Total Equity$152,000
Total Liabilities & Equity$266,000
Additional Information (for all entries; please see the posted Excel spreadsheet):
- Sales for 2018 are $310,000.All sales are on credit.
- Gross Margin ratio is 40 percent
- Accounts Receivable:
i.$190,000 of the accounts receivable is paid by the end of the year (the remaining balance remains on the balance sheet).
ii.$4,000 of A/R is written off during the year.
iii.5% of A/R (after write-off and collections) is considered to be uncollectible.
- Inventory:
i.Inventory purchases are $180,000, all on credit.
ii.All accounts payable is from inventory purchases; all but $12,000 of inventory purchased is paid by the end of the year.
- Additional equipment is purchased on 4/1/18 for $20,000 cash.All equipment when new, including the new purchase, has/had a 5-year life, no salvage value, and is depreciated using the straight-line method.
- The building depreciates at $5,000 per year.
- Half of the marketable securities were sold for $1,200. The FMV and cost of the other half of the securities are the same, so no adjustment to FMV is required.
- Salaries are $2,200 per month (12 months of salaries expense must be booked).It is expected that one-half month will be owed on 12/31/18 because of when payday falls (therefore, 11.5 months of salaries have been paid and month is still owed to the employees at year end).
- $55,000 in cash is borrowed on 9/30/18 by issuing a Note Payable. Interest is 8% per year.
- The bonds were sold at face value last December and pay interest on Dec. 31, 2018.
- 10,000 additional shares of stock were sold for $3 a share.
- Insurance costing $18,000 was purchased on 6/1/18 (the same time in which the old policy expired.The new policy was for 12 months).
- On Dec. 31, 2018, 1000 shares of stock are repurchased from the market at $2.90/share (treasury stock).
- The tax rate is 30 percent.Income taxes for the current year are due and therefore paid during the first two months of the next year (you will have to complete an entry to pay the 2017 taxes, however the 2018 taxes will not be paid until the end of January 2019).
- Dividends of $3,000 were paid during 2018.
- The unearned revenue has been earned during the year (classified as other revenue on the multi-step income stmt.).
Required Labeled Sheets (all statements should be for 2018):
- Data Sheet for Additional Data
- Entries: Basic and Adjusting (you do not have to show closing entries, however, keep in mind all temporary accounts are closed to retained earnings)
- Adjusted Trial Balance for 2018 (includes the posted amounts of all entries and adjusting entries)
- Multi-step Income Statement
- Retained Earnings Statement
- Classified Balance Sheet
- Cash Flow Statement
- Post-Close Trial Balance for 2018
The Post-Close Trial Balance for 2017 is provided below (based on the above balance sheet).This can be used as a starting point or you can use the above Balance Sheet; keep in mind all debits and credits ALWAYS equal AND Assets = Liabilities + Equity:
Your Name, Inc.
Post Close Trial Balance
31-Dec-17
DEBITS
CREDITS
Cash
17,000
Marketable Securities
2,000
Accounts Rec.
14,000
Allowance for Bad Debt
2,000
Inventory
15,000
Prepaid Insurance
5,000
Land
30,000
Building
150,000
Accumulated Dep. - Building
45,000
Equipment
100,000
Accumulated Dep. - Equipment
20,000
Accounts Payable
9,000
Salaries Payable
Unearned Revenue
2,000
Interest Payable
Income Taxes Payable
3,000
Note Payable
Bonds
100,000
Common Stock
50,000
Additional Pd-in-Capital
80,000
Retained Earnings
22,000
333,000
333,000
I need help on this project please.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started