Question

Question Help vestern Reserve Rare Coins (MRRC) was formed on January 1, 2018. Additional data for the year follow (Click the icon to view the data.) 0 More Info ad the requirements. December 31, 2018 Assets Current Assets: Cash Liabilities Current Liabilities: Accounts Payable Salaries Payable 150.000 4,000 Accounts Receivable Merchandise Inventory Total Current Assets 260,000 Total Current Liabilities 154,000 a. On January 1, 2018, MRRC issued no par common stock for $525,000 b. Early in January, MRRC made the following cash payments: 1. For store fixtures, $55,000 2. For merchandise inventory, $280,000 3. For rent expense on a store building, $14,000 c. Later in the year, MRRC purchased merchandise inventory on account for $240,000. Before year-end, MRRC paid $150,000 of this accounts payable. d. During 2018, MRRC sold 3,100 units of merchandise inventory for $400 each Before year-end, the company collected 85% of this amount Cost of goods sold the year was $260,000, and ending merchandise inventory totaled $260,000 e. The store employs three people. The combined annual payroll is $80,000, of which MRRC still owes $4,000 at year-end. f. At the end of the year, MRRC paid income tax of $20,000. There are no income taxes payable. g. Late in 2018, MRRC paid cash dividends of $35,000 h. For store fixtures, MRRC uses the straight-line depreciation method, over five year with zero residual value Property. Plant, and Equipment: Rent Expense Store Fixtures Stockholders' Equity Common Stock Retained Earnings 525,000 855,000 55,000 69,000 Total Stockholders' Equity 1,380,000 Total Assets Total Liabilities and Stockholders' Equity Choose from any list or enter any number in the input fields and then click Check Answer. Print Done 4 parts 4 remaining Clear All Check Answer on

I need help I'm kinda of confused.

Answer 1

MRRC Balance Sheet December 31, 2018
Assets			Liabilities
Current Assets			Current Liabilities
Cash		949,000	Accounts Payable	90,000
Accounts Receivable		186,000	Salaries Payable	4,000
Merchandise Inventory		260,000	Total Current Liabilities		94,000
Total Current Assets		1,395,000
Property, Plant and Equipment			Stockholders' Equity
Stores Fixtures	55,000		Common Stock	525,000
Accumulated Depreciation	(11,000)	44,000	Retained Earnings	820,000
			Total Stockholders' Equity		1,345,000
Total Assets		1,439,000	Total Liabilities and Stockholders' Equity		1,439,000

In the books of MRRC :

Transaction	Account Titles	Debit	Credit
		$	$
a.	Cash	525,000
	Common Stock		525,000
b.1	Stores Fixtures	55,000
	Cash		55,000
b.2	Merchandise Inventory	280,000
	Cash		280,000
b.3	Rent Expense	14,000
	Cash		14,000
c.	Merchandise Inventory	240,000
	Accounts Payable		240,000
	Accounts Payable	150,000
	Cash		150,000
d.	Accounts Receivable (3,100 x $ 400)	1,240,000
	Sales		1,240,000
	Cost of Goods Sold	260,000
	Merchandise Inventory		260,000
	Cash	1,054,000
	Accounts Receivable		1,054,000
e.	Salaries Expense	80,000
	Cash		76,000
	Salaries Payable		4,000
f.	Income Tax Expense	20,000
	Cash		20,000
g.	Dividends	35,000
	Cash		35,000
h.	Depreciation Expense ( 55,000 / 5 )	11,000
	Accumulated Depreciation		11,000