Question

Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position):

Cash                                                                    $     3,700

Accounts receivable                                                   5,900

Supplies inventory                                                    29,300

Land                                                                        168,500  

Buildings                                                                 116,500

Accumulated depreciation, buildings                       37,500   

Equipment                                                                 58,500

Accumulated depreciation, equipment                     18,000

Accounts payable                                                      25,200

Income tax payable                                                   16,600

Interest payable                                                           4,200

Wages payable (due in 2020)                                    15,700                                         

9% Notes payable ($10,000 due June 30, 2021,

     balance due June 30, 2022)                                  61,500

Common shares                                                       151,500

Retained earnings, Dec. 31, 2019                              52,200         

Transactions during 2020:

1.The company provided sales services to customers, on credit, for $ 210,300. In addition, the company produced cash sales to customers of $ 62,300.

2.Accounts receivable from customers of $ 15,600 remain to be collected at December 31, 2020.

3.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.

4.Minor parts were purchased with cash for $ 7,400 and debited to the supplies inventory account.

5.Wages payable at the beginning of 2020 were paid early in 2020. In addition, wages were earned by employees and paid during 2020 in the amount of $ 112,000.

6.Income tax payable at the beginning of 2020 was paid early in 2020.

7.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.

8.One year’s interest at 9% was paid on the notes payable at July 1, 2020.

9. During 2020, Don Tallint, the principal shareholder, purchased a new car for his wife

    Debbie. The new car cost $ 45,000 and was paid for with cash from personal sources.

10.Property taxes were paid on the land and buildings in the amount of $ 17,000 with cash.

11.Dividends were declared and paid in cash in the amount of $ 7,200.

Information available for year end adjusting entries:

12.•Supplies inventory was counted on December 31, 2020 and it was determined the supplies inventory still on hand at yearend was $ 31,900.

13. •Annual depreciation on the buildings is $ 6,000.

14•Annual deprecation on the equipment is $ 5,500

15•Additional wages of $4,000 were earned but are unpaid and unrecorded at December 31, 2020.

16•Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020.

17•Income taxes of $ 16,500 were unpaid and unrecorded at December 31, 2020.

Required:

Prepare a classified statement of financial position for Marmidan Mold Shop Inc. as at December 31, 2020. (Please record on the electronic worksheet)

Answer 1

Marmidan Mold Shop Inc.
Balance Sheet
As of December 31, 2020
Assets
Current Assets
Cash		12,165
Accounts Receivable		15,600
Supplies Inventory		31,900
Total Current Assets			59,665
Property, Plant & Equipment
Land		168,500
Buildings	116,500
Accumulated depreciation, buildings	(43,500)	73,000
Equipment	58,500
Accumulated depreciation, equipment	(23,500)	35,000
Total Property, Plant & Equipment			276,500
Total Assets			336,165
Liabilities & Stockholders Equity
Current Liabilities
Accounts Payable	15,100
Income tax payable	16,500
Interest Payable	2,768
Wages payable	4,000
Notes Payable - current portion	10,000
Total Current Liabilities		48,368
Non-Current Liabilties
Notes Payable		51,500		61500-10000
Total Liabilties			99,868
Stockholders Equity
Common Stock		151,500
Retained Earnings		84,798
Total Stockholders Equity			236,298
Total Liabilities & Stockholders Equity			336,165

Marmidan Mold Shop Inc.
Journal entries
Date	Account	Debit	Credit	Calculation
1	Cash	$     62,300
	Accounts Receivable	$   210,300
	Sales		$   272,600
2	Cash	$   200,600		5900+210300-15600
	Accounts Receivable		$   200,600
3	Supplies Inventory	$     62,900
	Accounts Payable		$     62,900
4	Supplies Inventory	$        7,400
	Cash		$        7,400
5	Wages payable	$     15,700
	Wages expense	$   112,000
	Cash		$   127,700
6	Income tax payable	$     16,600
	Cash		$     16,600
7	Accounts Payable	$     73,000
	Cash		$     73,000
8	Interest Payable	$        4,200
	Interest expense	$        1,335
	Cash		$        5,535	61500*9%
9	No entry
			$               -
10	Property tax expense	$     17,000
	Cash		$     17,000
11	Dividends	$        7,200
	Cash		$        7,200
Adjusting entries
12	Supplies expense	$     67,700
	Supplies Inventory		$     67,700
13	Depreciation expense	$        6,000
	Accumulated depreciation, buildings		$        6,000
			ekkarill92 Next > < Previous Related Solutions Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account... Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions The company could issue 300,000 additional shares of $1 par value common stock for $7.50 per... Define circadian rhythms and how the body's"bilogical clock" works and what happens when it doesn't Distinguish... Can you think of any negative social consequences that nanobots would have on society? Nanobots are... how do you foster an organization culture that characterized by open communication high performance and an... Question Three (Chapter Three): Review the slides here (Links to an external site.)Links to an external... Prove by induction: 1 + 1/4 + 1/9 +⋯+ 1/?^2 < 2 − 1/?, for all... What are positive and negative reinforcement? How are positive and negative reinforcement different? How are they... ADVERTISEMENT About @ 2020 WizEdu