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[Your name] Merchandising Company buys and sells a product called Zoom. The company is subject to a 25% income tax rate. The account balances
[Your name] Merchandising Company buys and sells a product called Zoom. The company is subject to a 25% income tax rate. The account balances as of Jan. 1, 2022, the start of the year, were as follows: Debit Credit Cash 41,000 Accounts Receivable 20,000 Merchandise Inventory 52,500 Supplies 9,500 Investment in Marketable Securities (available for sale) 50,000 Pension Fund (long-term investment) 40,000 Equipment Accumulated Depreciation-equipment Accounts Payable 360,000 80,000 27,000 Common Stock, $10 par Retained Earnings Accumulated other Comprehensive Income Treasury Stock (1000 shares) Total 350,000 113,000 15,000 12,000 585,000 585,000 Merchandise inventory as of Jan 1st consisted of 3,500 units. Company uses Perpetual Inventory System using LIFO. The following transactions took place during 2022. 1. In order to raise capital, on Jan 1st, the company issued and sold bonds - par value $800,000, maturity 8-year, coupon rate 6%, interest to be paid semiannually. Market rate on issue date was 5.5%. After journalizing the transaction, prepare the amortization schedule on the Excel Tab entitled "Schedule". 2. In order to raise capital, on Ja. 1st, the company issued and sold 3,000 shares of 12% preferred stock at $100 par each. 3. Purchased a delivery truck (equipment) for $55,000. Paid $10,000 in cash and signed a note, a 6%, 3-year note, requiring 36 monthly payments at the end of each month. After journalizing the transaction, prepare the amortization schedule on the Excel Tab entitled "Schedule". 4. Purchased 60,000 units of Zoom at a cost of $15 each plus 8% sales taxes that was not included in the purchase price. Shipping cost was $3,000. The purchase was on account. 5. Sold 50,000 Zoom purchased in transaction above to Team America for a price of $31 each in cash. Applicable sales tax rate was 8% which was not included in price. 6. During the year paid $900,000 of accounts payable.
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