1 | Journal entries | ||||||
Date | Account titles and explanation | Debit | Credit | ||||
2017 | |||||||
Nov 1. | Retained earnings | (90000*1*7) | 630000 | ||||
Dividend payable | 630000 | ||||||
(Dividend declared) | |||||||
Dec 29. | No entry | ||||||
2018 | |||||||
Feb 14. | Dividend payable | 630000 | |||||
Cash | 630000 | ||||||
(Dividend paid) | |||||||
2 | Beginning balance | 78000 | |||||
Add: Sales on account | 445400 | ||||||
523400 | |||||||
Less: Ending balance | 54000 | ||||||
Cash collected from customers | 469400 | ||||||
3 | Beginning balance | 15000 | |||||
Add: purchase on account | 118000 | ||||||
133000 | |||||||
Less: Ending balance | 26800 | ||||||
Cash paid for purchase | 106200 | ||||||
4 | a. Cash payments of dividends | 6100 | - | F | |||
b. Cash payment of inventory | 118350 | - | O | ||||
c. Cash payment for expenses | 3000 | - | O | ||||
d. Cash payment for wages | 55750 | - | O | ||||
e. Cash payment for interest expenses | 455 | - | O | ||||
f. Cash payment for purchase of equipment | 21900 | - | I | ||||
g. Cash payment for repayment of debt | 18500 | - | F | ||||
h. Cash collection of accounts receivable | 440000 | + | O | ||||
i. Cash collection of interest revenue | 7700 | + | I | ||||
j. Cash collection of dividend revenue | 1600 | + | I | ||||
k. Cash proceeds from sale of equipment | 18000 | + | I | ||||
l. Cash proceeds from sale of common stock | 33600 | + | F | ||||
5 | Cash from operating activity | ||||||
h. Cash collection of accounts receivable | 440000 | ||||||
b. Cash payment of inventory | -118350 | ||||||
c. Cash payment for expenses | -3000 | ||||||
d. Cash payment for wages | -55750 | ||||||
e. Cash payment for interest expenses | -455 | ||||||
Net cash provided by operating activities (a) | 262445 | ||||||
Cash from investing activity | |||||||
f. Cash payment for purchase of equipment | -21900 | ||||||
i. Cash collection of interest revenue | 7700 | ||||||
j. Cash collection of dividend revenue | 1600 | ||||||
k. Cash proceeds from sale of equipment | 18000 | ||||||
Net cash provided by investing activities (b) | 5400 | ||||||
Cash from financing activity | |||||||
a. Cash payments of dividends | -6100 | ||||||
g. Cash payment for repayment of debt | -18500 | ||||||
l. Cash proceeds from sale of common stock | 33600 | ||||||
Net cash provided by fiancing activities © | 9000 | ||||||
Net change in cash (a+b+c) | 276845 | ||||||
Cash at the beginning of the period | 3160 | ||||||
Cash at the end of the period | 280005 | ||||||
1) On Nov. 1, 2017, the board of directors of Disney Claire Inc. declared a $7.00...
Hart began construction of a new building last year on July 1, 2017. On the day construction was started, the land was appraised at $350,000. It had been purchased 2 years earfier for $200,000. By Dec. 31, 2017 it had spent $600,000 on construction and correctly paid and capitalized interest in the amount of $32,000. The following added expenditures were made in 2018 prior to completion of the building on September 1, 2018: Date Amount Feb. 1, 2018 Aug.1, 2018...
Hart began construction of a new building last year on July 1, 2017. On the day construction was started, the land was appraised at $350,000. It had been purchased 2 years earlier for $200,000. By Dec. 31, 2017 it had spent $600,000 on construction and correctly paid and capitalized interest in the amount of $32,000. The following added expenditures were made in 2018 prior to completion of the building on September 1, 2018: Date Amount Feb. 1, 2018 840,000 Aug.1,...
The stockholders' equity accounts of Swifty Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 11,000 shares authorized) Common Stock ($4 stated value, 660,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (11,000 common shares) $660,000 2,200,000 33,000 1,056,000 1,513,600 88,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 11,000 shares...
ABC Company sold 10000 shares of stock for $50000 on Jan 1, 2017 On Feb 1, 2017, 1000 units of inventory was purchased at $10 each On June 1, 2017, 600units of inventory was purchased at $12 each On Nov 1, 2017, 1000 units of inventory was purchased at $14 each On Dec 1, 2017, 450 units of inventory were left ABC Company sold the units at $45 each on average, with no accounts receivables or accounts payable on record...
On October 29, 2017 Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90 day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $60 in both 2017 and 2018. The manufacturer has advised the...
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1. The Antique Mall completed the following transactions during February 2017: Feb. 3 7 9 10 Purchased $3,300 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point Returned $900 of defective merchandise purchased on February 3. Paid freight bill of $400 on February 3 purchase. Sold merchandise inventory on account for $4.700. Payment terms were 2/15, 1/30. These goods cost the company $2,350 Paid amount owed on credit purchase of February 3, less...
On October 29, 2017 Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $60 in both 2017 and 2018. The manufacturer has advised the company...
Question #8. Below is the balance sheet of Brown Inc. for the years 2017 and 2018. December 31, 2018 Dec. 31, 2017 Cash ………………………………………………. $ 6,000 $ 9,000 Accounts receivable …………………………….. 10,000 12,000 Merchandise inventory ……………………. 29,000 18,000 Prepaid rent ……………………………………… 6,000 4,000 Equipment ……………………………………….. 110,000 90,000 Accumulated depreciation ……………………… (40,000) (23,000) Total assets ……………………………………… $121,000 $110,000 Accounts payable ………………………………. $ 9,000 $ 25,000 Dividends payable ……………………………… 6,000 4,000 Common stock …………………………………. 38,000 30,000 Additional Paid in Capital,...
Kohler Corporation reports the following components of stockholders' equity on December 31, 2017 Common stock-$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 675, eee 70, eee 370 eee $1,115, eee In year 2018, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $25 cash per share. Jan. 5 Directors declared a 54 per...
Kohler Corporation reports the following components of stockholders' equity on December 31, 2017 Common stock-$15 par value, 100, 200 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 675, eee 7e, eee 37e eee $1,115, eee In year 2018, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 5,5ee shares of its own stock at $25 cash per share. Jan. 5 Directors declared a 54...