Question

Pelcher Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.

PELCHER CORPORATION
Comparative Balance Sheets
December 31, 2017 and 2016
2017 2016
Assets
Cash $ 512,000 $ 327,000
Accounts receivable 153,000 131,000
Inventory 647,000 566,000
Total current assets 1,312,000 1,024,000
Equipment 413,000 359,000
Accum. depreciation—Equipment (195,000 ) (125,000 )
Total assets $ 1,530,000 $ 1,258,000
Liabilities and Equity
Accounts payable $ 135,000 $ 111,000
Income taxes payable 32,000 29,000
Total current liabilities 167,000 140,000
Equity
Common stock, $2 par value 832,000 768,000
Paid-in capital in excess of par value, common stock 311,000 215,000
Retained earnings 220,000 135,000
Total liabilities and equity $ 1,530,000 $ 1,258,000

PELCHER CORPORATION
Income Statement
For Year Ended December 31, 2017
Sales $ 2,662,000
Cost of goods sold 1,614,000
Gross profit 1,048,000
Operating expenses
Depreciation expense $ 70,000
Other expenses 734,000 804,000
Income before taxes 244,000
Income taxes expense 74,690
Net income $ 169,310

Additional Information on Year 2017 Transactions

A) Purchased equipment for $54,000 cash.
B) Issued 32,000 shares of common stock for $5 cash per share.
C) Declared and paid $84,310 in cash dividends.

Requirement
General Journal
General Ledger
Trial Balance
Direct Method
Indirect Method

Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year.  Upon completion, the trial balance tab should agree with the December 31, 2017 balances.

Journal entry worksheet
.....

Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.

Note: Enter debits before credits.

Date Account Title Debit Credit
Dec 31

PLEASE SOLVE THIS PROBLEM FOR ME ASAP ALONE WITH SEP BY STEP PLEASE

Answer 1

Post each entry and prepare T Accounts corresponding. Figues mentioned as b/f is balancing figure of the account, and used to calculate the cash paid etc.

Journal Entries
Account Title	Debit	Credit
Accounts Receivable	2662000
To Sales		2662000
Cost of Sales	1614000
To Inventory		164000
Cash	2640000
To Accounts Receivable		264000
(refer AR calculation below)
Accounts Payable	1671000
To Cash		1671000
(refer AP calculation below)
Fixed Asset	54000
To Cash		54000
Depreciation	70000
To Accumulated Depreciation		70000
Cash	160000
To Share Capital		64000
To Paid up capital excess		96000
Retained earnings	84310
To Dividend payable		84310
Dividend payable	84310
To Cash		84310
Retained earnings	74690
To Income tax		74690
Income tax	71690
To Cash		71690
Other Expense	734000
To Cash		734000

Workings

Trial Balance

Trail Balance as of Dec 2017
	Debit	Credit
Cash	512,000.00
AR	153,000.00
Inventory	647,000.00
Equipment	413,000.00
Accumulated Depreciation		195,000.00
A/P		135,000.00
Income taxes		32,000.00
Stock		832,000.00
Paid up capital in excess		311,000.00
Retained earning		50,690.00
Sales		2,662,000.00
COS	1,614,000.00
Depreciation	70,000.00
Other exp	734,000.00
Tax	74,690.00
	4217690	4217690

Since no details related to depreciation rate is given, it is assumed that depreciation is provided   

Main ledgers in T account format

Cash will balance after all entries are posted

Cash
OB	327000	AP	1671000
AR	2640000	FA	54000
Share	160000	Dividend	84310
		Tax	71690
		Other exp	734000
		CB	512000

Other accounts

		AR
OB	131000	Cash (b/f)	2640000
Sales	2662000
		CB	153000

	Inventory
OB	566000	COS	1614000
AP	1695000
		CB	647000

		AP
Cash (b/f)	1671000	OB	111000
		Inventory	1695000
CB	135000

Tax
Cash (b/f)	71690	OB	29000
		For year	74690
CB	32000