Note: This problem is for the 2018 tax year.
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm.
During 2018, the Deans had the following receipts:
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Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child support—the alimony payments were to terminate if Wanda remarried.
In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained.
The Deans had the following expenditures for 2018:
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The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.
The Deans' household includes the following, for whom they provide more than half of the support:
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Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the Deans.
Federal income tax withheld is $5,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld.
Required:
Determine the Federal income tax for 2018 for the Deans on a joint return by providing the following information that would appear on Form 1040 and Schedule A. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. If an overpayment results, it is to be refunded to them.
In: Accounting
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Estimated total fixed manufacturing overhead $ 14,400 Estimated variable manufacturing overhead per direct labor-hour $ 1.50 Estimated total direct labor-hours to be worked 3,600 Total actual manufacturing overhead costs incurred $ 20,000 ________________________________________ Job P Job Q Direct materials $ 15,000 $ 9,600 Direct labor cost $ 40,500 $ 12,000 Actual direct labor-hours worked 2,700 800 ________________________________________
11. Calculate the cost of goods manufactured using the indirect method.
12. Calculate the cost of goods sold using the indirect method.
13. How would you revise your answer to question 11 if the company had beginning work in process inventory of $9,600?
14. How would you revise your answer to question 12 if the company had beginning finished goods inventory of $13,600?
In: Accounting
HUBBARD CORPORATION | |||
Balance Sheet | |||
At December 31, 2018 | |||
Assets | |||
Buildings | $ | 756,000 | |
Land | 268,000 | ||
Cash | 66,000 | ||
Accounts receivable (net) | 132,000 | ||
Inventories | 252,000 | ||
Machinery | 286,000 | ||
Patent (net) | 106,000 | ||
Investment in marketable equity securities | 72,000 | ||
Total assets | $ | 1,938,000 | |
Liabilities and Shareholders' Equity | |||
Accounts payable | $ | 221,000 | |
Accumulated depreciation | 261,000 | ||
Notes payable | 512,000 | ||
Appreciation of inventories | 86,000 | ||
Common stock,
authorized and issued 106,000 shares of no par stock |
424,000 | ||
Retained earnings | 434,000 | ||
Total liabilities and shareholders' equity | $ | 1,938,00 |
Additional information:
The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $56,000 but, due to a significant increase in market value, is listed at $132,000. The increase in the land account was credited to retained earnings.
Marketable equity securities consist of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely.
Notes payable are all long-term. However, a $160,000 note requires an installment payment of $40,000 due in the coming year.
Inventories are recorded at current resale value. The original cost of the inventories is $166,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard
Corporation at December 31, 2018. (Amounts to be deducted
should be indicated by a minus sign.)
In: Accounting
In July, 2006, a member of the audit team auditing Belhaven University’s annual report was carrying his laptop while walking to his car parked in the street. He was mugged and his wallet and laptop was stolen. The laptop contained audit documentation with sensitive personal information about employees, including their social security numbers. According to Belhaven’s president, Roger Parrott, the stolen computer had “several sophisticated levels of security” and it was unlikely that the thief would be able to extract any information. (1) Do you think that the auditors violated GAAS by allowing the information to be stolen? Why or why not? (2) Since a laptop might get stolen (or simply crash), what steps do you think an auditor should take to prevent losing the information in it?
In: Accounting
.
A condensed income statement by product line for Crown Beverage Inc. indicated the following for King Cola for the past year:
Sales | $234,800 |
Cost of goods sold | 110,000 |
Gross profit | $124,800 |
Operating expenses | 143,000 |
Loss from operations | $(18,200) |
It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 19% of the operating expenses are fixed. Since King Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued.
a. Prepare a differential analysis, dated March 3, to determine whether King Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "0". Use a minus sign to indicate a loss.
Differential Analysis | |||
Continue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2) | |||
January 21 | |||
Continue King Cola (Alternative 1) |
Discontinue King Cola (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
Revenues | $ | $ | $ |
Costs: | |||
Variable cost of goods sold | |||
Variable operating expenses | |||
Fixed costs | |||
Income (Loss) | $ | $ | $ |
b. Should Star Cola be retained?
Explain.
As indicated by the differential analysis in part (A), the income would by $ if the product is discontinued.
In: Accounting
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies.
For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:
Activity Cost Pool (Activity Measure) | Total Cost | Total Activity | |||
Customer deliveries (Number of deliveries) | $ | 440,000 | 5,000 | deliveries | |
Manual order processing (Number of manual orders) | 438,000 | 6,000 | orders | ||
Electronic order processing (Number of electronic orders) | 210,000 | 10,000 | orders | ||
Line item picking (Number of line items picked) | 902,000 | 440,000 | line items | ||
Other organization-sustaining costs (None) | 610,000 | ||||
Total selling and administrative expenses | $ | 2,600,000 | |||
Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $31,000 to buy from manufacturers):
Activity |
||
Activity Measure | University | Memorial |
Number of deliveries | 12 | 29 |
Number of manual orders | 0 | 42 |
Number of electronic orders | 11 | 0 |
Number of line items picked | 140 | 230 |
Required:
1. Compute the total revenue that Worley would receive from University and Memorial.
2. Compute the activity rate for each activity cost pool.
3. Compute the total activity costs that would be assigned to University and Memorial.
4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $31,000 cost of goods sold that Worley incurred serving each hospital.)
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Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $31,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)
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In: Accounting
how would i write down these into journal entries?
1. On February 3, 2017, FCM signed an agreement with Deion Sanders to provide media consulting for his football camp. On December 1, FCM completed some of the work for Sanders, and issued an invoice for $15,000. Full payment was received on January 15, 2018. Note: the project did not involve video production.
2. On December 1, to prepare for expansion, FCM issued 1,000 shares of stock for $90 per share and signed a $20,000 note to Wells Fargo that is due November 20, 2022. The note carries a 4.5% annual rate of interest which is to be paid semi-annually so the first interest payment will be made May 31, 2018. (Do not forget to record accrued interest at the end of the year). On December 3, FCM purchased land for $100,000 on which to build a 4,000 sq. ft. facility.
3. On November 15, 2017, FCM sent an invoice for $170,000 to the Livestrong Foundation for creating a promotional video. On December 2, FCM received the $170,000 payment from the Livestrong Foundation
4. On November 30, 2017, FCM purchased, received, and recorded $4,000 of supplies from VimBoot on account. On December 4, FCM paid VimBoot for the supplies purchased the previous month.
5. On November 30, 2017, FCM accrued $230 for that month’s AT&T Internet and telephone bill. That ATT&T bill was paid on December 5.
6. FCM recorded the purchase of a $1,600 insurance policy on May 31, 2017, for coverage from June 6 through December 6, 2017. No other entries related to this insurance policy have been made. FCM purchased a new 365-day policy on December 6 for $2,920 cash.
7. On December 7, NBC Sports contacted FCM about a potential video project. On December 15, FCM paid $1,000 to a consultant to gather focus groups to determine if there was sufficient demand for the project NBC Sports proposed. On December 30, the consultant provided TCM with the report discussing the results of the focus groups.
8. On December 11, FCM purchased two computers from Dell Inc. for $4,900 each. FCM paid $500 down with a check; the remaining balance is due in 30 days (n/30). The computers have an estimated life of three years and a salvage value of $50 each.
9. On December 12, an invoice in the amount of $120 was received from FedEx for transportation-in on the computers purchased on December 11. The invoice was paid the same day by check.
10. On December 15, a $55,000 social marketing project was completed for JonyJones. The invoice was sent with a due date of January 25, 2018. FCM failed to record transaction on this date.
11. On August 1, 2017, a $12,000 contract was signed for a social marketing project with Outright Fitness and FCM received the full payment on that date. On December 17, FCM completed the project for Outright Fitness.
12. On December 18, FCM had an unpleasant communication with O-Dij-Games, a company producing on-line video games and a long-time customer of FCM. O-Dij-Games had recently difficulties with revenue generation and financing. O-Dij-Games’ management expresses an unwillingness to pay FMC the remaining $1,500 due to FMC because of dissatisfaction with the outcomes from FCM’s social media campaigns. O-Dij-Games indicated its intention to never use FMC services in the future. FCM wrote off the O-Dij-Games’ outstanding balance. FCM uses the allowance method for bad debts.
13. On December 19, FCM received $28,000 payment for a promotional project that was completed for Chuck Nash Chevy in October 2017. The receivable had been recorded upon completion of the project.
14. On November 22, FCM borrowed $15,000 on a 5%, 30-day note from SocialVid Consulting. No interest on this note has yet been accrued. On December 22, FCM repaid the note and interest.
15. On December 22, FCM issued a $340 check to reimburse an employee for travelling to Houston to make a presentation to potential customers.
16. On December 29, supplies of $900 were purchased on account (n/30) and delivered.
17. A cash dividend of $9,700 was declared and paid on December 30.
18. Beginning in April 2017, FCM performed a variety of social media services for Art Unlimited over a period of six months. Art Unlimited failed to make its last payment of $11,000, which was due November 15, 2017, because it was waiting for money to be transferred to it from a related art foundation. On December 31, FCM allowed Art Unlimited to replace its account receivable with a six-month note receivable due June 30, 2018; the note carries a 5% interest rate.
19. All six FCM employees are monthly paid. Wages and Salary Expense for December 2017 was $9,180, which will be paid on January 2, 2018.
FCM used the following information to make adjusting entries:
20. A physical count of supplies indicated that, as of December 31, 2017, $800 worth of supplies were on hand.
21. On December 31, the marketing project for JonyJones that had not been recorded is identified and recorded.
22. On November 1, YMCA-Austin began negotiations with FCM for $42,000 of video production services. FCM would perform the video production services for YMCA-Austin over a 12-month period. FCM signed the contract on December 1, 2017 and began shooting immediately. Payments for the work are to be spread evenly throughout the 12-month period, with FCM billing YMCA-Austin on the last day of every month. The check for December’s work for YMCA was not received until January 1st, 2018.
23. December 2017’s electricity bill of $100 was accrued on December 31 but was received and paid on January 2nd, 2018.
24. December’s Internet and telephone bill of $230 was accrued at month end and paid on January 3, 2018.
25. Make the adjusting entry necessary to record depreciation expense for all of 2017. Your assistant has calculated depreciation for the year, as shown in in the “Extra Info” tab. FCM’s management has decided that a full month of depreciation is recorded if an asset is held for 15 days or more; if the asset is used less than 15 days in a month, no depreciation is recognized. For example, the equipment acquired on March 19 is depreciated as if it had been purchased bought on April 1. A computer sold on November 11 is depreciated as if it had only been used until October 31.
26. A lease payment of $6,000 for renting the office was made on November 1, 2017, for rental through October 31, 2018. The asset account was properly adjusted for November. The cost of leasing the office needs to be made for December 2017.
27. The Allowance for Doubtful Accounts should be established at 1% of Accounts Receivable as of December 31, 2017. Compute the balance after making the December adjusting entries.
28. During 2017, there were four notes payable outstanding (the three indicated below and the one repaid on December 22). Interest for two of these notes (SnapCut and WestBestVideo) is paid at maturity; interest on the Wells Fargo note is paid semiannually. Proper accruals of the interest for the three notes below were made as of November 30, 2017. Interest for December 2017 for these three notes needs to be recorded.
Your assistant calculated interest for December 2017 below:
SnapCut Inc., 6%, 6 months, due Feb. 28, 2018 |
10,000 x 0.06 x (1/12) = |
50 |
WestBestVideo, 8%, 6 months, due Apr. 30, 2018 |
2000 x 0.08 x (1/12) = |
13 |
Wells Fargo, 4.5%, 5 years, due Nov. 20, 2022 |
20,000 x 0.045 x (1/12) = |
75 |
29. Insurance expense for December 2017 needs to be recorded using the number of days in the insurance policy.
In: Accounting
Thoroughly describe the general format and key steps involved in a capital investment planning process.
How is the federal government’s approach different than that of the states and local governments?
Why is asset a key component?
In: Accounting
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
Direct materials | $ | 74,000 | ||||
Direct labor | $ | 37,500 | ||||
Variable manufacturing overhead | $ | 17,000 | ||||
Fixed manufacturing overhead | 29,500 | |||||
Total manufacturing overhead | $ | 46,500 | ||||
Variable selling expense | $ | 13,000 | ||||
Fixed selling expense | 20,000 | |||||
Total selling expense | $ | 33,000 | ||||
Variable administrative expense | $ | 4,500 | ||||
Fixed administrative expense | 26,000 | |||||
Total administrative expense | $ | 30,500 |
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4. With respect to cost classifications for predicting cost behavior:
a. What is the total variable manufacturing cost?
b. What is the total fixed cost for the company as a whole?
c. What is the variable cost per unit produced and sold?
In: Accounting
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:
Sales (13,500 units × $30 per unit) | $ | 405,000 | |
Variable expenses | 243,000 | ||
Contribution margin | 162,000 | ||
Fixed expenses | 180,000 | ||
Net operating loss | $ | (18,000 | ) |
Required:
1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales.
2. The president believes that a $6,300 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $84,000 per month. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?
3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $36,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?
4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,900?
5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $58,000 each month.
a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.
b. Assume that the company expects to sell 20,400 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)
c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,400 units)?
In: Accounting
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows. KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Liabilities and Equity Cash $ 83,500 Accounts payable $ 252,500 Inventory 549,000 Kendra, Capital 76,000 Cogley, Capital 171,000 Mei, Capital 133,000 Total assets $ 632,500 Total liabilities and equity $ 632,500 Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.) (1) Inventory is sold for $610,200. (2) Inventory is sold for $453,000. (3) Inventory is sold for $352,200 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $246,000 and the partners have no assets other than those invested in the partnership.
In: Accounting
Jane Pty Ltd is the trustee of Moore Family Trust. The trust property is worth $450,000. Jane Pty Ltd runs a cafe on behalf of the trust. The trust deed notes that the trustee can only enter into contracts in relation to running the cafe. However, Jane Pty Ltd, on behalf of the trust, entered into several transactions worth $150,000. These transactions were in relation to building a railway in Sweden. Jane Pty Ltd pays the $150,000.
Advise Jane Pty Ltd on its right of indemnification from the trust property.
In: Accounting
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
Direct materials | $ | 74,000 | ||||
Direct labor | $ | 37,500 | ||||
Variable manufacturing overhead | $ | 17,000 | ||||
Fixed manufacturing overhead | 29,500 | |||||
Total manufacturing overhead | $ | 46,500 | ||||
Variable selling expense | $ | 13,000 | ||||
Fixed selling expense | 20,000 | |||||
Total selling expense | $ | 33,000 | ||||
Variable administrative expense | $ | 4,500 | ||||
Fixed administrative expense | 26,000 | |||||
Total administrative expense | $ |
30,500 |
3. With respect to cost classifications for manufacturers:
a. What is the total manufacturing cost?
b. What is the total nonmanufacturing cost?
c. What is the total conversion cost and prime cost?
In: Accounting
Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio. The partnership's capital balances are as follows: Meir, $68,000; Benson, $104,000; and Lau, $178,000. Benson decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Benson's retirement. Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhode’s entry into the partnership under each of the following separate assumptions: Rhode invests (a) $116,667; (b) $85,167; and (c) $152,834. (Do not round your intermediate calculations.)
In: Accounting
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
Dec. 31, 20Y2 | Dec. 31, 20Y1 | ||||
Assets | |||||
Cash | $ 701,950 | $ 755,530 | |||
Accounts receivable (net) | 638,770 | 582,620 | |||
Inventories | 968,690 | 891,480 | |||
Prepaid expenses | 22,460 | 26,670 | |||
Land | 241,470 | 365,010 | |||
Buildings | 1,116,100 | 687,910 | |||
Accumulated depreciation-buildings | (315,880) | (294,820) | |||
Equipment | 393,090 | 347,470 | |||
Accumulated depreciation-equipment | (108,100) | (121,440) | |||
Total assets | $3,658,550 | $3,240,430 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $ 695,120 | $ 733,540 | |||
Bonds payable | 204,880 | 0 | |||
Common stock, $20 par | 241,000 | 89,000 | |||
Paid-in capital: Excess of issue price over par-common stock | 579,000 | 427,000 | |||
Retained earnings | 1,938,550 | 1,990,890 | |||
Total liabilities and stockholders' equity | $3,658,550 | $3,240,430 |
The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2 are as follows:
ACCOUNT Land | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 365,010 | |||
Apr. 20 | Realized $114,900 cash from sale | 123,540 | 241,470 |
ACCOUNT Buildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 687,910 | |||
Apr. 20 | Acquired for cash | 428,190 | 1,116,100 |
ACCOUNT Accumulated Depreciation-Buildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 294,820 | |||
Dec. 31 | Depreciation for year | 21,060 | 315,880 |
ACCOUNT Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 347,470 | |||
Jan. 26 | Discarded, no salvage | 38,200 | 309,270 | ||
Aug. 11 | Purchased for cash | 83,820 | 393,090 |
ACCOUNT Accumulated Depreciation-Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 121,440 | |||
Jan. 26 | Equipment discarded | 38,200 | 83,240 | ||
Dec. 31 | Depreciation for year | 24,860 | 108,100 |
ACCOUNT Bonds Payable | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
May 1 | Issued 20-year bonds | 204,880 | 204,880 |
ACCOUNT Common Stock, $20 par | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 89,000 | |||
Dec. 7 | Issued 7,600 shares of common stock for $40 per share |
152,000 | 241,000 |
ACCOUNT Paid-in Capital in Excess of Par-Common Stock | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 427,000 | |||
Dec. 7 | Issued 7,600 shares of common stock for $40 per share |
152,000 | 579,000 |
ACCOUNT Retained Earnings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 1,990,890 | |||
Dec. 31 | Net loss | 25,200 | 1,965,690 | ||
Dec. 31 | Cash dividends | 27,140 | 1,938,550 |
In: Accounting