Can you guys help me to solve question 4, 5 and 6?Thanks a lot!!! Other Information:1) The selling price for each of the printers is $270.2) Captain America Corporation uses the FIFO method under the perpetual inventory system to account for inventory.3) In the past, Captain America Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, CreditCard Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable,Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period.Required:1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2021. Place your answer under"Requirement 1“ in the "Answer“ tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling isaccurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question.2) Prepare an adjusted trial balance as at May 31, 2021. Place your answer under "Requirement 2“ in the “Answer“ tab. Place your account titles in columnH, debits in column I and credits in column J. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in theirentirety. A reminder to only use the accounts given in the question.3) Prepare the multi-step Income Statement for the month of May 2021. Ignore income taxes. Place your answer under “Requirement 3“ in the "Answer“ tab.Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given inthe question.4) Prepare a classified Balance Sheet at at May 31, 2021. Place your answer under "Requirement 4“ in the "Answer“ tab. Ensure your spelling is accurate.Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question.5) Assume Captain America Corporation overstated its ending inventory by $600. How does this affect cost of goods sold, gross profit, and net income inthe year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Placeyour answer under “Requirement 5“ in the "Answer“ tab using the drop down menus. Enter any type responses in the designated spots.6) Assume that Captain America Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $240 is less than the FIFO cost.Prepare the journal entry. Place your answer under "Requirement 6“ in the "Answer“ tab. Ensure your spelling is accurate. Do not use abbreviations foryour accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. Captain America Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2021, the following were the accountbalances of Captain America Corporation:DebitsCreditsCash24300Allowance for Doubtful Accounts900Accounts Receivable9000Accumulated Depreciation (Van)18000Inventory (255 units)51000Accumulated Depreciation (Furniture & Fixtures)Accounts Payable1200Van192004800Furniture & Fixtures5400Common Shares6000Retained Earnings78000Total Debits108900Total Credits108900During May 2021, the following transactions took place:May 1: Bought 108 desktop printers for $120 each on account.May 1: Bought a van, paying $6300 cash as a down payment and signed a 10 month $21000, 9% note payable for the balance. The company paid $450 to haveits company logo painted on the side of the van. The residual value is $2700. The old van was sold for $4800; it cost $19200 and acculumateddepreciation up to the date of disposal was $18000.May 10: Sold 90 printers to Falcon Inc. on account.May 12: Advanced Idea Mechanics agreed to sign a 90-day note receivable to replace a $900 accounts receivable due that day. The interest rate on the note is4.5%.May 20: Sold 7 printers to Iron Man Inc. using a VISA card to pay for the transaction. A 2.7% service fee is charged by VISA.May 22: Sold 42 printers to Sam Wilson Public School on account.May 24: Returned for credit 3 damaged printers from Falcon Inc., costing $108 each.May 28: Received payment in full from Falcon Inc. for tha balance owing.May 28: Wrote off as uncollectable $1650 of accounts receivable.May 29: Paid accounts payable, $7200.May 30: Recovered an accounts receivable that was written off in April, $480.May 31: Paid operating expenses totalling $27300.May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be usedfor 8 years. The furniture & fixtures are depreciated using the straight-line method over 4 years. There is no residual value on the furniture and fixtures.May 31: Recorded interest on the note payable.May 31: Recorded interest on the notes receivable.May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows:Number of Days Outstanding 0-30 days 31-60 days | 61-90 days90+ daysAccounts Receivable$16200$7200$2100$420Estinated Percentage Uncollectable0.6%2.4%7.2%15%

Name: Can you guys help me to solve question 4, 5 and 6?Thanks a lot!!! Othe
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Can you guys help me to solve question 4, 5 and 6?Thanks a lot!!! Other Information:1) The selling price for each of the printers is $270.2) Captain America Corporation uses the FIFO method under the perpetual inventory system to account for inventor

Balance sheet stands for the statement and information that shows the assets and liabilities of the…

Answered: Captain America Corporation is a small…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Can you guys help me to solve question 4, 5 and 6?

Thanks a lot!!!

Other Information:
1) The selling price for each of the printers is $270.
2) Captain America Corporation uses the FIFO method under the perpetual inventory system to account for inventory.
3) In the past, Captain America Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit
Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable,
Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period.
Required:
1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2021. Place your answer under
"Requirement 1“ in the "Answer“ tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is
accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question.
2) Prepare an adjusted trial balance as at May 31, 2021. Place your answer under "Requirement 2“ in the “Answer“ tab. Place your account titles in column
H, debits in column I and credits in column J. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their
entirety. A reminder to only use the accounts given in the question.
3) Prepare the multi-step Income Statement for the month of May 2021. Ignore income taxes. Place your answer under “Requirement 3“ in the "Answer“ tab.
Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in
the question.
4) Prepare a classified Balance Sheet at at May 31, 2021. Place your answer under "Requirement 4“ in the "Answer“ tab. Ensure your spelling is accurate.
Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question.
5) Assume Captain America Corporation overstated its ending inventory by $600. How does this affect cost of goods sold, gross profit, and net income in
the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place
your answer under “Requirement 5“ in the "Answer“ tab using the drop down menus. Enter any type responses in the designated spots.
6) Assume that Captain America Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $240 is less than the FIFO cost.
Prepare the journal entry. Place your answer under "Requirement 6“ in the "Answer“ tab. Ensure your spelling is accurate. Do not use abbreviations for
your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question.

Transcribed Image Text:Captain America Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2021, the following were the account balances of Captain America Corporation: Debits Credits Cash 24300 Allowance for Doubtful Accounts 900 Accounts Receivable 9000 Accumulated Depreciation (Van) 18000 Inventory (255 units) 51000 Accumulated Depreciation (Furniture & Fixtures) Accounts Payable 1200 Van 19200 4800 Furniture & Fixtures 5400 Common Shares 6000 Retained Earnings 78000 Total Debits 108900 Total Credits 108900 During May 2021, the following transactions took place: May 1: Bought 108 desktop printers for $120 each on account. May 1: Bought a van, paying $6300 cash as a down payment and signed a 10 month $21000, 9% note payable for the balance. The company paid $450 to have its company logo painted on the side of the van. The residual value is $2700. The old van was sold for $4800; it cost $19200 and acculumated depreciation up to the date of disposal was $18000. May 10: Sold 90 printers to Falcon Inc. on account. May 12: Advanced Idea Mechanics agreed to sign a 90-day note receivable to replace a $900 accounts receivable due that day. The interest rate on the note is 4.5%. May 20: Sold 7 printers to Iron Man Inc. using a VISA card to pay for the transaction. A 2.7% service fee is charged by VISA. May 22: Sold 42 printers to Sam Wilson Public School on account. May 24: Returned for credit 3 damaged printers from Falcon Inc., costing $108 each. May 28: Received payment in full from Falcon Inc. for tha balance owing. May 28: Wrote off as uncollectable $1650 of accounts receivable. May 29: Paid accounts payable, $7200. May 30: Recovered an accounts receivable that was written off in April, $480. May 31: Paid operating expenses totalling $27300. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 8 years. The furniture & fixtures are depreciated using the straight-line method over 4 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days 31-60 days | 61-90 days 90+ days Accounts Receivable $16200 $7200 $2100 $420 Estinated Percentage Uncollectable 0.6% 2.4% 7.2% 15%

Expert Solution

Step by step

Solved in 6 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.