American Laser, Incorporated, reported the following account balances on January 1. Debit $5,000 Accounts Receivable Accumulated Depreciation, Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS 247,000 10,000 Requirement $ 262,000 General Journal Credit General Ledger $ 30,000 90,000 2,000 The company entered into the following transactions during the year January 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. March 15 Reissued 2,000 shares of treasury stock for $24,000 cash. 10,000 10,000 120,000 August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. $ 262,000 October 3 wrote off a $1,500 balance due from a customer who went bankrupt.. December 29 Recorded $230,000 of service revenue, all of which was collected in cash. December 30 Paid $200,000 cash for this year's wages through December 31. Ignore payroll taxes and payroll deductions. December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and in taxes.) Trial Balance Balance Sheet Debt to Assets Ratio

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...
icon
Related questions
Question
3
American Laser, Incorporated, reported the following account balances on January 1.
Debit
$5,000
Accounts Receivable
Accumulated Depreciation
Additional Paid-in Capital
Allowance for Doubtful Accounts
Bonds Payable
Buildings
Cash
Common Stock, 10,eee shares of $1 par
Notes Payable (long-term)
Retained Earnings
Treasury Stock
TOTALS
Requirement
General
Journal
247,000
10,000
General
Ledger
$ 262,000
Credit
$ 30,000
90,000
2,000
e
The company entered into the following transactions during the year.
January 15 Issued 5,000 shares of $1 par common stock for $50,000 cash.
January 31 Collected $3,000 from customers on account.
February 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,eee cash.
March 15 Reissued 2,000 shares of treasury stock for $24,000 cash.
August 15 Reissued 600 shares of treasury stock for $4,600 cash.
September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock.
October 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101.
October 3 wrote off a $1,500 balance due from a customer who went bankrupt.
December 29 Recorded $230,000 of service revenue, all of which was collected in cash.
December 30 Paid $200,000 cash for this year's wages through December 31. Ignore payroll taxes and payroll deductions.
December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income
taxes.)
10,000
10,000
120,000
$ 262,000
Trial Balance Balance Sheet
Debt to Assets
Ratio
General Journal tab - Prepare the journal entries to record each transaction. Review the accounts as shown in the
General Ledger and Trial Balance tabs.
General Ledger tab - Each journal entry is posted automatically to the general ledger.
Trial Balance tab - The option you choose will be the values used to populate the balance sheet tabs.
Balance Sheet tab - Prepare the noncurrent liabilities and stockholders equity sections of the balance sheet at
December 31. At the end of the year, the adjusted net income was $20,000.
General Journal tab - Prepare a closing journal entry for the income statement accounts, assuming the events on
December 29-31 were the only transactions to affect income statement accounts.
General Journal tab - After preparing the financial statements, record the closing entry for Dividends.
Impact on Debt to Assets Ratio tab - Calculate the Debt to Assets Ratio and analyze the impact of the Debt to
Assets Ratio.
Transcribed Image Text:3 American Laser, Incorporated, reported the following account balances on January 1. Debit $5,000 Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,eee shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS Requirement General Journal 247,000 10,000 General Ledger $ 262,000 Credit $ 30,000 90,000 2,000 e The company entered into the following transactions during the year. January 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,eee cash. March 15 Reissued 2,000 shares of treasury stock for $24,000 cash. August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. October 3 wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded $230,000 of service revenue, all of which was collected in cash. December 30 Paid $200,000 cash for this year's wages through December 31. Ignore payroll taxes and payroll deductions. December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) 10,000 10,000 120,000 $ 262,000 Trial Balance Balance Sheet Debt to Assets Ratio General Journal tab - Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - The option you choose will be the values used to populate the balance sheet tabs. Balance Sheet tab - Prepare the noncurrent liabilities and stockholders equity sections of the balance sheet at December 31. At the end of the year, the adjusted net income was $20,000. General Journal tab - Prepare a closing journal entry for the income statement accounts, assuming the events on December 29-31 were the only transactions to affect income statement accounts. General Journal tab - After preparing the financial statements, record the closing entry for Dividends. Impact on Debt to Assets Ratio tab - Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning