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Journalize the transactions and create Balance Sheet and Income Statement for year end 2016 Carl Corp....

Journalize the transactions and create Balance Sheet and Income Statement for year end 2016

Carl Corp. Prepares its financial statements under U.S. GAAP

During the Year

  • The company begins operations on January 1, 2016. The company is started by issuing 100,000 shares of common stock for $5,000,000 ($1 Par value stock)
  • The company immediately purchases $600,000 in inventory for cash and sells $200,000 of this inventory to customer #1 for $300,000 on credit.
  • The company purchases a machine for $240,000 cash on January 1st and depreciates it over 5 years (depreciation is recorded straight line at year end and there is no salvage value)
  • On June 1st, customer #1 pays us $80,000 of the amount due.
  • During June, $50,000 dollars of research and development expenses are incurred. $15,000 of this amount has not been paid as of yearend (i.e. remains a payable).
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