I. Juarez Inc. has been operating for three years. At December 31, 2017 the accounting records...

I.
Juarez Inc. has been operating for three years. At December 31, 2017 the accounting records reflected the following:

During the year 2018, the company had the following summarized activities:
a. Purchased short term investment for 18,000 cash.
b. Lent 14,000 to a supplier who signed a 2 years note.
c. Purchased equipment that cost 36,000; paid 12,000 cash and signed a one year not for the balance.
d. Hired a new president at the end of the year. The contract was for 170,000 per year.
e. Issued an additional 2,000 shares of capital stock for 24,000 cash.
f. Borrowed 27,000 cash from a local bank. Payable in 3 Months.
g. Purchased a patent for 6,000 cash.
h. Built an addition to the factory for 50,000; paid 18,000 cash and singed a 3 years note for the rest.
i. Returned defective equipment to the manufacturer and received a cash refund of 2,000.

Instructions:
1. Record the above transactions in the GJ and post them to the GL.
2. Prepare the balance sheet at 31 December, 2018.

II.
The trial balance of JAS manufacturing company shows the following assets at the end of December 2018:
• Cash: $380,000
• Prepaid insurance: $82,000
• Raw materials: $670,000
• Equipment: $2,200,000
• Accounts receivable: $800,000
• Work-in-process (WIP): $400,000
• Finished goods: $150,000
• Patents: $220,000

Instructions:
Prepare current assets section of the balance sheet of JAS Company.

III.

Larson’s Accounting Company has the following account balances: Cash, $10,000; Accounts Receivable, $2,000; Prepaid Rent $1,500; Supplies, $850; Equipment, $6,000; Trucks, $15,000; Accounts Payable, $2,500; Notes payable, $5,000; Common Stock, $20,000; Retained Earnings $7,850. Business transactions during December are presented as follows:
Larson paid the suppliers $500,
Supplies were purchased on account, $650
Larson purchased short term investment for $2,000.
Sold an old computed (listed under equipment’s) for $100 cash.
Sold 4,000 additional shares of stock for 20,000 cash.
Purchased new computers that cost 9,000 for 4,000 cash and the rest on account.

Instructions:
1. Record the above transactions in the GJ and post them to the GL.
2. Prepare the balance sheet.

Expert Solution

ekkarill92 answered 2 years ago

Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records...

Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records reflected the following: Cash $ 22,000 Accounts payable $ 20,000 Investments (short-term) 2,600 Accrued liabilities payable 2,800 Accounts receivable 3,700 Notes payable (short-term) 6,800 Inventory 28,000 Notes payable (long-term) 42,000 Notes receivable (long-term) 2,700 Common stock 10,500 Equipment 47,000 Additional paid-in capital 94,500 Factory building 95,000 Retained earnings 28,500 Intangibles 4,100 During the year 2015, the company had the following summarized activities: a. Purchased...

Whispering Company has been operating for several years, and on December 31, 2017, presented the following...

Whispering Company has been operating for several years, and on December 31, 2017, presented the following balance sheet. WHISPERING COMPANY BALANCE SHEET DECEMBER 31, 2017 Cash $44,000 Accounts payable $82,100 Receivables 74,000 Mortgage payable 126,600 Inventory 92,800 Common stock ($1 par) 142,400 Plant assets (net) 224,100 Retained earnings 83,800 $434,900 $434,900 The net income for 2017 was $23,500. Assume that total assets are the same in 2016 and 2017. Compute each of the following ratios. (Round answers to 2 decimal...

The TMI Corporation has been in operation for over 30 years and, at December 31, 2017,...

The TMI Corporation has been in operation for over 30 years and, at December 31, 2017, it had: • 10,000 shares of $300 par-value common stock authorized, of which 4,000 shares had been issued, and • 10,000 shares authorized, issued, and outstanding of $20 stated-value preferred stock, that pays a dividend of 4%. On January 2, 2018, TMI’s Board of Directors declared and issued a 3-for-1 common stock split. Then, on September 1, 2018, TMI’s Board declared (i) a 20%...

Data taken from the accounting records of Sherri’s Designs on December 31 are shown. Operating expenses...

Data taken from the accounting records of Sherri’s Designs on December 31 are shown. Operating expenses $1,000 Sales revenue 5,000 Inventory, Jan. 1, 2019 1,600 Purchases 1,200 Interest revenue 250 Loss on disposal of a discontinued component of the business (pre-tax) 400 Inventory, Dec. 31, 2019 750 Income tax expense 660 Sherri’s Designs has 2,000 shares of common stock outstanding and net income per share for 2019 was $0.63. The income tax rate is 30%. Required: a. Prepare a single-step...

The following financial information was taken from a firm’s accounting records on December 31, 2017. Use...

The following financial information was taken from a firm’s accounting records on December 31, 2017. Use this information to determine the items below. Net Sales $ 800,000 Net Income Before Income Tax 45,000 Income Tax Expense 6,750 Net Income After Income Tax 38,250 Total Assets 400,000 Find the following 1. Rate of returns on net sales. 2. Rate of return on total assets. 3. Asset turnover.

Presented below are data taken from the records of Sandhill Company. December 31, 2017 December 31,...

Presented below are data taken from the records of Sandhill Company. December 31, 2017 December 31, 2016 Cash $15,000 $8,000 Current assets other than cash 84,500 59,900 Long-term investments 10,000 52,800 Plant assets 335,600 217,200 $445,100 $337,900 Accumulated depreciation $20,200 $39,700 Current liabilities 39,600 21,800 Bonds payable 75,600 –0– Common stock 253,300 253,300 Retained earnings 56,400 23,100 $445,100 $337,900 Additional information: 1. Held-to-maturity securities carried at a cost of $42,800 on December 31, 2016, were sold in 2017 for $34,000....

Presented below are data taken from the records of Vaughn Company. December 31, 2017 December 31,...

Presented below are data taken from the records of Vaughn Company. December 31, 2017 December 31, 2016 Cash $15,100 $8,100 Current assets other than cash 85,300 60,300 Long-term investments 10,000 53,000 Plant assets 337,500 213,900 $447,900 $335,300 Accumulated depreciation $20,000 $40,400 Current liabilities 40,400 21,900 Bonds payable 74,600 –0– Common stock 253,700 253,700 Retained earnings 59,200 19,300 $447,900 $335,300 Additional information: 1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2016, were sold in 2017 for $33,700....

C-Bay Inc.'s accounting year ends on December 31. During the following three years, its common shares...

C-Bay Inc.'s accounting year ends on December 31. During the following three years, its common shares outstanding changed as follows. 2022 2021 2020 Shares outstanding, January 1 150,000 120,000 100,000 Sales of shares, April 1, 2020 20,000 25% stock dividend, July 1, 2021 30,000 2-for-1 stock split, July 1, 2022 150,000 Shares sold, October 1, 2022 50,000 Shares outstanding, December 31 350,000 150,000 120,000 Required a. For purposes of calculating EPS at the end of each year, determine the number...

On December 31, 2017, Monty Inc. has a machine with a book value of $996,400. The...

On December 31, 2017, Monty Inc. has a machine with a book value of $996,400. The original cost and related accumulated depreciation at this date are as follows. Machine $1,378,000 Less: Accumulated depreciation 381,600 Book value $996,400 Depreciation is computed at $63,600 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update...

On December 31, 2017, Swifty Inc. has a machine with a book value of $1,109,200. The...

On December 31, 2017, Swifty Inc. has a machine with a book value of $1,109,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,534,000 Less: Accumulated depreciation 424,800 Book value $1,109,200 Depreciation is computed at $70,800 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update...

Question