Question
In: Accounting
The POL Company had started its operations in 2016. The balance sheet for December 31, 2016,...
The POL Company had started its operations in 2016. The balance sheet for December 31, 2016, showed the following accounts balances (there were no other accounts listed):
Accounts receivables 45
Unearned revenue 40
Accumulated depreciation 10
Common stock 500
Retained earnings 57
Property plant and equipment (gross) 200
Inventory 75
Accounts payable 40
Cash 309
Prepaid rent ______
During 2017 the following transactions occurred:
1. POL purchased $375 worth of inventory on account.
2.Payments on Accounts payable were $365.
3.Cash sales were $260; credit sales were $360.
4.Ending inventory was $59.
5.Depreciation expense was $20.
6.Collections from customers (not including cash sales) were $312.
7. The Prepaid rent had expired during the year.
8. POL hired one employee, who worked for the entire year at $4 per month. At the end of the year, POL owes its employee $6.
9.Dividend of $24 was declared and paid during 2017.
10. On the last day of the year, POL gave a loan of $50 to its twin sister company, CLA.
11.Unearned revenue account remained intact during 2017.
a.What was the balance of the Prepaid rent account on December 31, 2016?
b.Record journal entries for all transactions occurred during 2017.
c.Prepare an Income Statement for the year ended December 31, 2017.
d. Prepare a Balance Sheet for December 31, 2017.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The December 31, 2016, balance sheet of the Kramer Company had Accounts Receivable of $650,000 and...
The December 31, 2016, balance sheet of the Kramer Company had
Accounts Receivable of $650,000 and a credit balance in Allowance
for Doubtful Accounts of $33,000. During 2017, the following
transactions occurred: sales on account $1,550,000; sales returns
and allowances, $100,000; collections from customers, $1,250,000;
accounts written off, $35,000; previously written off accounts of
$8,000 were collected.
Journalize the 2017 transactions. (Credit account
titles are automatically indented when the amount is entered. Do
not indent manually.)
Account Titles and Explanation...
Name________________________________ The December 31, 2016 balance sheet of Benson Company had Accounts Receiv
Name________________________________
The December 31, 2016 balance sheet of Benson Company had
Accounts Receivable of $450,000 and a credit balance in Allowance
for Doubtful Accounts of $33,000. During 2017, the following
transactions occurred:
Sales on account $1,600,000
Sales returns and allowances, $75,000
Collections from customers,
$1,450,000
Accounts written off $35,000
Previously written off accounts of
$6,000 were collected
(a) Journalize the 2017
transactions. Disregard any impact on inventory. (6
points)
Date
Account Titles
Debit
Credit
(b) If Benson uses...
Larkspur Inc. had the following balance sheet at December 31, 2016. LARKSPUR INC. BALANCE SHEET DECEMBER...
Larkspur Inc. had the following balance sheet at December 31,
2016.
LARKSPUR INC.
BALANCE SHEET
DECEMBER 31, 2016
Cash
$ 20,990
Accounts payable
$ 30,990
Accounts receivable
22,190
Notes payable (long-term)
41,990
Investments
32,990
Common stock
100,990
Plant assets (net)
81,000
Retained earnings
24,190
Land
40,990
$ 198,160
$ 198,160
During 2017, the following occurred.
1.
Larkspur Inc. sold part of its
investment portfolio for $ 15,071. This transaction resulted in a
gain of $ 3,471 for the firm. The...
Lander Inc. had the following balance sheet on December 31, 2016: LANDER, INC. Balance Sheet December...
Lander Inc. had the following balance sheet on December 31,
2016:
LANDER, INC.
Balance Sheet
December 31, 2016
Cash
$49,830
Accounts payable
$37,180
Accounts receivable
$20,790
Bonds payable
$38,500
Investments
$27,500
Common stock
$209,000
Plant assets (net)
$85,800
Retained earnings
$20,240
Land
$121,000
Total Assets
$304,920
Total Liabilities & Equity
$304,920
During 2017 the following occurred:
Lander liquidated its investment portfolio at a loss of
$7,150.
A tract of land was purchased for $34,100.
An additional $22,000 in common stock...
The BouchonCompany started its operations many years ago. The balance sheet for December 31, 2017, showed the...
The BouchonCompany started
its operations many years ago. The balance sheet for
December 31, 2017, showed the following account balances, in
dollars (there were no other accounts listed):
Cash 827; Paid in
capital 1,000; Loan from bank (0% interest) 800; Dividend payable
100; Accumulated depreciation 250; Inventory 300; Retained earnings
334; Accounts receivable 400; PP&E 1,500; Accounts payable 250;
Wages payable 103; Rent payable 30; Advances from customers
160;
During 2018the following transactions occurred:
Bouchon took another 0% interest loan from...
Sheridan Company’s balance sheet at December 31, 2016, is presented below. Sheridan Company Balance Sheet December...
Sheridan Company’s balance sheet at December 31, 2016, is
presented below.
Sheridan Company
Balance Sheet
December 31, 2016
Cash
$13,850
Accounts payable
$8,650
Accounts receivable
21,200
Common stock
19,000
Allowance for doubtful accounts
(810
)
Retained earnings
15,800
Inventory
9,210
$43,450
$43,450
During January 2016, the following transactions occurred. Sheridan
Company uses the perpetual inventory method.
Jan. 1
Sheridan Company accepted a 4-month, 8% note from Betheny
Company in payment of Betheny’s $3,600 account.
3
Sheridan Company wrote off as...
Balance Sheet Preparation The December 31, 2016, balance sheet accounts of Hitt Company are shown here...
Balance Sheet Preparation
The December 31, 2016, balance sheet accounts of Hitt Company
are shown here in alphabetical order:
Accounts Payable
$20,800
Equipment
$72,400
Accounts Receivable
21,000
Inventory
37,200
Accumulated Depreciation: Buildings
53,000
Land
30,000
Accumulated Depreciation: Equipment
35,100
Marketable Securities (short-term)
6,100
Additional Paid-in Capital on Common Stock
24,000
Patents (net)
9,500
Additional Paid-in Capital on Preferred Stock
11,500
Preferred Stock, $100 par
21,000
Allowance for Doubtful Accounts
800
Retained Earnings
53,740
Bonds Payable (due 2024)
77,000
Revenues
107,000...
The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016....
The accountant for Becker Company wants to develop a balance
sheet as of December 31, 2016. A review of the asset records has
revealed the following information:
a.
Asset A was purchased on July 1,
2014, for $50,000 and has been depreciated on the straight-line
basis using an estimated life of six years and a residual value of
$5,000.
b.
Asset B was purchased on January 1,
2015, for $82,500. The straight-line method has been used for
depreciation purposes. Originally,...
The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016....
The accountant for Becker Company wants to develop a balance
sheet as of December 31, 2016. A review of the asset records has
revealed the following information:
a.
Asset A was purchased on July 1, 2014, for $40,000 and has been
depreciated on the straight-line basis using an estimated life of
six years and a residual value of $4,000.
b.
Asset B was purchased on January 1, 2015, for $79,200. The
straight-line method has been used for depreciation purposes.
Originally,...
Walbash Company presents the following December 31, 2016, balance sheet: Walbash Company Sheet of Balances for...
Walbash Company presents the following December 31, 2016,
balance sheet:
Walbash Company
Sheet of Balances for Year Ended December 31, 2016
Current
Assets
$ 44,300
Long-term
investments
13,600
Property, plant, and
equipment
123,500
Intangible
assets
7,700
Other
assets
13,600
______
Total assets
$202,700
Current
liabilities
$ 66,600
Long-term
liabilities
24,100
Contributed capital
17,000
Unrealized
capital
22,500
Retained
earnings
72,500
______
Total
equities
$202,700
The following information is also available:
Current assets include cash, $3,800; accounts receivable,...
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