Question

Using the information below,

1. Prepare the general ledger

2. Prepare the multiple step income statement

3. Prepare the owner's equity statement

4. Prepare the classified balance sheet

1. APR-1 the JW-Corp Received $200,000 in Exchange for 40,000 shares of Common Stock.
2. APR-1 the JW-Corp Borrowed $150,000 from US-Bank on a Note, Due in 5 Years with 8% Interest Paid Monthly.
3. APR-2 the JW-Corp Purchased a Building for $360,000 (25 year life), with $60,000 Cash Down Payment and signed a Note with SCHWAB BANK for the Remainder Due in 10 Years with Interest Due Monthly at a 6% Rate.
4. APR-2 the JW-Corp purchased a Delivery Truck (5 Year and 200,000 Mile Life) for $90,000 on a Note Due with FORD Corp with Interest Accrued Monthly at a 12% Rate. The Total Interest and Principal are DUE in 6 Months.
5. APR-5 = JW-Corp received $105,000 from the TARGET Corp for BIKES we Will Deliver Later.
6. APR-6 = JW-Corp Purchased 1500 BIKES at $88 Each on Account from SPECIALIZED Corp.
   1. FYI = JW-Corp uses a Perpetual FIFO Inventory System
7. APR-7 = JW-Corp Purchased 2000 BIKES at $95 Each on Account from SPECIALIZED Corp.
8. APR-10 = JW-Corp paid this Month’s Rent Expense of $18,000 with a Check
9. APR-15 = JW-Corp received this Month’s Phone Bill from ATT for $7,000 to pay Later.
10. APR-18 = JW-Corp received this Month’s Utility Bill from PGE for $8,000 to be paid Later.
11. APR-19 = JW-Corp Sold 1000 BIKES for $210 each on account to the COSTCO Corp.
12. APR-20 = JW-Corp Sold and Delivered 1100 BIKES for $180 each to the TARGET Corp. from the Order and Check received in Trans#5. We Billed the Customer the Remainder on Account.
13. APR-22 = JW-Corp Paid $161,000 with a Check to SPECIALIZED Corp on Account.
14. APR-24 = JW-Corp Sold 1200 BIKES to the COSTCO Corp for $175 each, on account.
15. APR-25 = JW-Corp received a check from COSTCO Corp for $233,000 on account.
16. APR-26 = JW-Corp paid $29,000 for Current Months Salaries with a Check.
17. APR-27= JW-Corp bought Back 5,000 Shares of Common Stock from Investors for $3.00 per Share with Electronic Transfers of Cash to the Stock Brokerage Firm.
18. APR-28 = JW-Corp Paid Dividends of $2.20 per Share to Current Shareholders via EFT.
19. APR-29 = JW-Corp Recorded the Following Items from the monthly Bank Reconciliation.
    1. Bank Fees Expense of $400, Investment Income of $1,400
20. APR-30 = JW-Corp Recorded the Estimated Allowance for Un-collectible accounts at 5.00% of The Month End TOTAL Accounts Receivable Balance.
21. APR-30 = JW-Corp recorded one month of Interest Expense Paid on the US BANK Loan. Tr#2
22. APR-30 = JW-Corp recorded one month of Interest Expense Paid to Schwab Bank. Tran#3
23. APR-30 = JW-Corp recorded one month of Interest Expense PAYABLE to Ford Later. Tran#4
24. APR-30 = JW-Corp recorded Depreciation Expense on the Building (Tran#3) for the Month using the Straight-Line Method.
25. APR-30 = JW-Corp recorded Depreciation Expense on the Truck (Tran#4) Using the Units-of –Production-Activity Method. The Truck was Driven 12,000 Miles during the Month.
26. APR-30 = JW-Corp Recorded Income Tax Expense Payable for the Month, at 30% Tax Rate.

Answer 1

JW-Corp Journal entries No. Date Account 1 1-Apr Cash Common Stock Credit Debit $ 200,000 Calculation 40,000 shares $ 200,000 2 $ 150,000 1-Apr Cash Long-term Notes Payable US-Bank Note, Due in 5 Years $ 150,000 with 8% Interest Paid Monthly 3 $360,000 2-Apr Building Cash Long-term Notes Payable 25 year life $ 60,000 SCHWAB BANK Due in 10 Years $ 300,000 with Interest Due 6% Monthly 4 $ 90,000 2-Apr Delivery Truck Short-term Notes Payable 5 Year and 200,000 Mile Life $ 90,000 FORD Corp with Interest Accrued Monthly at a 12% due in 6 Months 5 $ 105,000 5-Apr Cash Unearned Revenue $ 105,000 6 $ 132,000 =1500*88 6-Apr Inventory Accounts Payable $ 132,000 7 $ 190,000 =2000*95 7-Apr Inventory Accounts Payable $ 190,000 8 $ 18,000 10-Apr Rent Expense Cash $ 18,000 9 $ 7,000 15-Apr Phone Expense Accounts Payable $ 7,000 10 $ 8,000 18-Apr Utility Expense Accounts Payable $ 8,000 11 $ 210,000 $ 210,000 19-Apr Accounts Receivable Sales Cost of goods sold Inventory $ 88,000 From Inventory FIFO table $ 88,000 12 $ 105,000 $ 93,000 20-Apr Unearned Revenue Accounts Receivable Sales Cost of goods sold Inventory $ 198,000 =1100*180 From Inventory FIFO table $ 101,000 $ 101,000 13 $ 161,000 22-Apr Accounts Payable Cash $ 161,000 14 $ 210,000 =1200*175 $ 210,000 24-Apr Accounts Receivable Sales Cost of goods sold Inventory $ 114,000 From Inventory FIFO table $ 114,000 15 $ 233,000 25-Apr Cash Accounts Receivable $ 233,000 16 $ 29,000 26-Apr Salaries Expense Cash $ 29,000 17 $ 15,000 =5000*3 27-Apr Treasury Stock Cash $ 15,000 18 $ 77,000 =(40000-5000) * 2.20 28-Apr Dividends Cash $ 77,000 19 $ 400 29-Apr Bank Fees Expense Cash $ 400 $ 1,400 $ 1,400 20 29-Apr Cash Investment Income Adjusting entries 21 30-Apr Bad Debts Expense Allowance for Un-collectible accounts $ 14,000 =280000*5% $ 14,000 22 $ 1,000 150000*8%*1/12 30-Apr Interest Expense Cash $ 1,000 23 $ 1,500 300000*6%*1/12 30-Apr Interest Expense Cash $ 1,500 24 $ 900 90000*12%*1/12 30-Apr Interest Expense Interest Payable $ 900 25 $ 3,000 360000/10 years*1/12 30-Apr Depreciation Expense Accumulated Depreciation - Building $ 3,000 26 $ 5,400 90000/200,000 miles*12,000 miles 30-Apr Depreciation Expense Accumulated Depreciation - Delivery Truck $ 5,400 27 $ 68,460 30-Apr Income Tax Expense Income Tax Payable 228200*30% $ 68,460 From Income Statement

JW-Corp Perpetual Inventory System FIFO Goods Purchased Date Quantity Cost per unit Total cost 6-Apr 1,500 $ 88.00 132,000.00 7-Apr 2,000 $ 95.00 190,000.00 Cost of goods sold Cost per unit Total cost Quantity Ending Inventory Quantity Cost per unit Total cost 1,500 $ 88.00 132,000.00 1,500 $ 88.00 132,000.00 2,000 $ 95.00 190,000.00 3,500 322,000.00 500 $ 88.00 44,000.00 2,000 $ 95.00 190,000.00 2,500 234,000.00 19-Apr 1,000 $ 88.00 88,000.00 20-Apr 95.00 500 $ 600 $ 1,100 1,200 $ 88.00 44,000.00 95.00 57,000.00 101,000.00 95.00 114,000.00 1,400 $ 1,400 200 $ 200 24-Apr 95.00 133,000.00 133,000.00 19,000.00 19,000.00 19,000.00 Totals 3,500 322,000.00 3,300 303,000.00 200

JW-Corp T Accounts Date Debit Date Credit Cash 1-Apr $ 200,000 2-Apr $ 60,000 1-Apr $ 150,000 10-Apr $ 18,000 5-Apr $ 105,000 22-Apr $ 161,000 25-Apr $ 233,000 26-Apr $ 29,000 29-Apr $ 1,400 27-Apr $ 15,000 28-Apr $ 77,000 29-Apr $ 400 30-Apr $ 1,000 30-Apr $ 1,500 Date Debit Date Credit Accounts Receivable 19-Apr $ 210,000 25-Apr $ 233,000 20-Apr $ 93,000 24-Apr $ 210,000 Date Debit Date Credit Allowance for Un-collectible accounts 30-Apr $ 14,000 Date Debit Date Credit Inventory 6-Apr $132,000 19-Apr $ 88,000 7-Apr $ 190,000 20-Apr $ 101,000 24-Apr 114000 Bal. Bal. $ 14,000 Bal. $326,500 Building $ 280,000 Accum. Depr. - Building 30-Apr $ 3,000 Bal. Delivery Truck 2-Apr $ 90,000 $ 19,000 Accum. Depr. - Delivery Truck 30-Apr $ 5,400 2-Apr $360,000 Bal. Bal. $ 3,000 Interest Payable 30-Apr $ 900 $ 90,000 Income Tax Payable 30-Apr $68,460 Bal. $ 5,400 Unearned Revenue 20-Apr $ 105,000 5-Apr $ 105,000 Bal. $360,000 Accounts Payable 22-Apr $ 161,000 6-Apr $ 132,000 7-Apr $ 190,000 15-Apr $ 7,000 18-Apr $ 8,000 Bal. $ 68,460 Bal. $ Bal. $ 176,000 Short-term Notes Payable 2-Apr $ 90,000 Bal. $ 900 Long-term Notes Payable 1-Apr $ 150,000 2-Apr $ 300,000 $450,000 Bal. $ 90,000 Common Stock 1-Apr $ 200,000 Bal. Retained Earnings Treasury Stock 27-Apr $ 15,000 Dividends 28-Apr $ 77,000 $ Bal. $ 200,000 Sales 19-Apr $ 210,000 20-Apr $198,000 24-Apr $ 210,000 Bal. Cost of goods sold 19-Apr $ 88,000 20-Apr $ 101,000 24-Apr $ 114,000 Bal. $ 15,000 Salaries Expense 26-Apr $ 29,000 Bal. $ 77,000 Rent Expense 10-Apr $ 18,000 Bal Utility Expense 18-Apr $ 8,000 $ 618,000 Bal. $ 303,000 Phone Expense 15-Apr $ 7,000 Bal. $ 29,000 Depreciation Expense 30-Apr $ 3,000 30-Apr $ 5,400 Bal. $ 18,000 Bad Debts Expense 30-Apr $ 14,000 Bal. Bal. $ 8,000 Bank Fees Expense 29-Apr $ 400 $ 7,000 Investment Income 29-Apr $ Bal. $ 8,400 Interest Expense 30-Apr $ 1,000 30-Apr $ 1,500 30-Apr $ 900 Bal. $ 14,000 Income Tax Expense 30-Apr $ 68,460 1,400 Bal. $ 400 Bal. $ 1,400 Bal. $ 3,400 Bal. $ 68,460

Adjusted TB Debit Credit 326,500 280,000 14,000 19,000 360,000 3,000 90,000 5,400 176,000 900 68,460 JW-Corp Account Names Cash Accounts Receivable Allowance for Un-collectible accounts Inventory Building Accumulated Depreciation - Building Delivery Truck Accumulated Depreciation - Delivery Truck Accounts Payable Interest Payable Income Tax Payable Unearned Revenue Short-term Notes Payable Long-term Notes Payable Common Stock Retained Earnings Treasury Stock Dividends Sales Cost of goods sold Salaries Expense Rent Expense Utility Expense Phone Expense Depreciation Expense Bad Debts Expense Bank Fees Expense Investment Income Interest Expense Income Tax Expense Totals 90,000 450,000 200,000 15,000 77,000 618,000 303,000 29,000 18,000 8,000 7,000 8,400 14,000 400 1,400 3,400 68,460 1,627,160 1,627,160

618,000 303,000 315,000 JW-Corp Income Statement For the Month Ended April 30 Sales Cost of goods sold Gross Profit Operating Expenses Salaries Expense Rent Expense Utility Expense Phone Expense Depreciation Expense Bad Debts Expense Bank Fees Expense Total Operating expenses Operating Income Non-Operating items Investment Income Interest Expense Total Non-Operating items Net Income before taxes Income Tax Expense Net Income 29,000 18,000 8,000 7,000 8,400 14,000 400 84,800 230,200 (1,400) 3,400 2,000 228,200 68,460 228200*30% 159,740

JW-Corp Statement of Owners Equity For the Month Ended April 30 Common Stock Retained Earnings Treasury Stock Total Equity 200,000 Beginning Balance, April 1 Issue of new shares of Common Stock Common Stock shares bought Back Net Income Dividends Ending Balance, April 30 (15,000) 159,740 (77,000) 82,740 200,000 (15,000) 159,740 (77,000) 267,740 200,000 (15,000)

JW-Corp Balance Sheet As of April 30 Assets Current Assets Cash Accounts Receivable Allowance for Un-collectible accounts Accounts Receivable, Net Inventory Total Current Assets 326,500 280,000 (14,000) 266,000 19,000 611,500 360,000 (3,000) 357,000 Property, Plant & Equipment Building Accumulated Depreciation - Building Building, Net Delivery Truck Accumulated Depreciation - Delivery Truck Delivery Truck, Net Total Property, Plant & Equipment Total Assets 90,000 (5,400) 84,600 441,600 1,053,100 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Interest Payable Income Tax Payable Unearned Revenue Short-term Notes Payable Total Current Liabilities 176,000 900 68,460 90,000 335,360 Long-term Liabilties Long-term Notes Payable Total Liabilties 450,000 785,360 Stockholders Equity Common Stock Retained Earnings Treasury Stock Total Stockholders Equity Total Liabilities & Stockholders Equity 200,000 82,740 (15,000) 267,740 1,053,100