Question

In: Accounting

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $90,000 cash. Purchased $195,000 of merchandise on account. Sold merchandise that cost $162,000 for $322,000 on account. Collected $292,000 cash from accounts receivable. Paid $175,000 on accounts payable. Paid $66,000 of salaries expense for the year. Paid other operating expenses of $82,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 18,000 0.01 0–30 7,500 0.05 31–60 1,500 0.10 61–90 1,500 0.20 Over 90 days 1,500 0.50 Required Organize the transaction data in accounts under an accounting equation. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. What is the net realizable value of the accounts receivable at December 31, Year 1?

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...
Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $110,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $160,000 for $318,000 on account. Collected $278,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $60,000 of salaries expense for the year. Paid other operating expenses of $76,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount...
Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...
Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $120,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $154,000 for $306,000 on account. Collected $274,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $56,000 of salaries expense for the year. Paid other operating expenses of $72,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock for $100,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $154,000 for $306,000 on account. Collected $276,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $48,000 of salaries expense for the year. Paid other operating expenses of $64,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock for $110,000 cash. Purchased $205,000 of merchandise on account. Sold merchandise that cost $164,000 for $326,000 on account. Collected $292,000 cash from accounts receivable. Paid $185,000 on accounts payable. Paid $54,000 of salaries expense for the year. Paid other operating expenses of $70,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock for $110,000 cash. Purchased $205,000 of merchandise on account. Sold merchandise that cost $164,000 for $326,000 on account. Collected $292,000 cash from accounts receivable. Paid $185,000 on accounts payable. Paid $54,000 of salaries expense for the year. Paid other operating expenses of $70,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent...
Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...
Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $245,000 of merchandise on account. Sold merchandise that cost $166,000 for $330,000 on account. Collected $276,000 cash from accounts receivable. Paid $230,000 on accounts payable. Paid $54,000 of salaries expense for the year. Paid other operating expenses of $43,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule:    Number of Days Past Due...
Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common...
Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $225,000 of merchandise on account. Sold merchandise that cost $168,000 for $334,000 on account. Collected $282,000 cash from accounts receivable. Paid $210,000 on accounts payable. Paid $64,000 of salaries expense for the year. Paid other operating expenses of $53,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule:    Number of Days Past Due...
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided...
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided $84,000 of services on account. Collected $50,400 cash from accounts receivable. Paid $30,000 of salaries expense for the year. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 24,864 .01 0-30 1,680 .05 31-60 2,352 .10 61-90 2,016 .30 Over 90 days 2,688 .50 Required...
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided...
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided $76,000 of services on account. Collected $45,600 cash from accounts receivable. Paid $26,000 of salaries expense for the year. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 22,496 .01 0-30 1,520 .05 31-60 2,128 .10 61-90 1,824 .30 Over 90 days 2,432 .50 Required...
The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued...
The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued $170,000 of common stock for cash. Provided $96,000 of services on account. Collected $84,000 cash from accounts receivable. Loaned $11,000 to Mosby Co. on November 30, Year 1. The note had a one-year term to maturity and a 6 percent interest rate. Paid $44,000 of salaries expense for the year. Paid a $3,000 dividend to the stockholders. Recorded the accrued interest on December 31,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT