During the first month of operations, the following transactions were completed by ABC Corporation: Dec 1 Issued 25,000 shares of $1 par common stock for cash of $23 per share. Dec 3 ABC Company pays cash for Land and a building to be used in operations. The land cost $65,000 and the building cost $154,800. Dec 4 Purchased $18,000 of store fixtures on account. Dec 5 Purchased merchandise inventory from XYZ Company for $125,000, terms n/eom, FOB destination. Dec 6 ABC sold $50,000 of merchandise on account, n/10, FOB shipping point. The cost of merchandise sold was $20,000. Dec 9 Paid adverting costs of $20,000 to promote new business. Dec 10 Purchased merchandise inventory from QRS Company for $100,000, terms n/30, FOB destination. Dec 11 Purchased 500 shares of treasury stock for $17 per share. Dec 12 ABC's Board of Directors declared a $30,000 cash dividend. Dec 13 Paid $750 for utilities. Dec 15 Paid cash dividends to common shareholders. Dec 16 Received payment for merchandise sold on Dec. 6th. Dec 23 ABC sold $75,000 of merchandise on account, n/10, FOB shipping point. The cost of merchandise sold was $35,000. Dec 24 Sold 300 shares of treasury stock for $20 per share. Dec 31 Paid balance owed to XYZ Company for purchases on Dec 5. At the end of December, the following adjustment data were assembled. a After a physical count of inventory, it was determined that $169,500of inventory exists at December 31. b Based on an analysis of A/R, ABC Company anticipates 3% of A/R to be uncollectible. c Buildings are depreciated using the straight line method with no salvage value for 30 years. Round to the nearest dollar. d Store Fixtures are depreciated using the straight-line method with no salvage value for 5 years. Round to the nearest dollar. Directions: 1 Journalize the routine transactions above on the Journal-December tab. 2 Use the Unadjusted Trial Balance and adjusting information provided above to journalize the 4 adjusting entries on the Journal - December tab (below the routine entries). 3 Use the Adjusted Trial Balance provided to prepare financial statments for ABC Corporation. You are only responsible for preparing the Income Statement, Statement of Retained Earnings, and classified Balance Sheet. These should be completed on the Financial Statements tab

During the first month of operations, the following transactions were completed by ABC Corporation: Dec 1 Issued 25,000 shares of $1 par common stock for cash of $23 per share. Dec 3 ABC Company pays cash for Land and a building to be used in operations. The land cost $65,000 and the building cost $154,800. Dec 4 Purchased $18,000 of store fixtures on account. Dec 5 Purchased merchandise inventory from XYZ Company for $125,000, terms n/eom, FOB destination. Dec 6 ABC sold $50,000 of merchandise on account, n/10, FOB shipping point. The cost of merchandise sold was $20,000. Dec 9 Paid adverting costs of $20,000 to promote new business. Dec 10 Purchased merchandise inventory from QRS Company for $100,000, terms n/30, FOB destination. Dec 11 Purchased 500 shares of treasury stock for $17 per share. Dec 12 ABC's Board of Directors declared a $30,000 cash dividend. Dec 13 Paid $750 for utilities. Dec 15 Paid cash dividends to common shareholders. Dec 16 Received payment for merchandise sold on Dec. 6th. Dec 23 ABC sold $75,000 of merchandise on account, n/10, FOB shipping point. The cost of merchandise sold was $35,000. Dec 24 Sold 300 shares of treasury stock for $20 per share. Dec 31 Paid balance owed to XYZ Company for purchases on Dec 5. At the end of December, the following adjustment data were assembled. a After a physical count of inventory, it was determined that $169,500of inventory exists at December 31. b Based on an analysis of A/R, ABC Company anticipates 3% of A/R to be uncollectible. c Buildings are depreciated using the straight line method with no salvage value for 30 years. Round to the nearest dollar. d Store Fixtures are depreciated using the straight-line method with no salvage value for 5 years. Round to the nearest dollar. Directions: 1 Journalize the routine transactions above on the Journal-December tab. 2 Use the Unadjusted Trial Balance and adjusting information provided above to journalize the 4 adjusting entries on the Journal - December tab (below the routine entries). 3 Use the Adjusted Trial Balance provided to prepare financial statments for ABC Corporation. You are only responsible for preparing the Income Statement, Statement of Retained Earnings, and classified Balance Sheet. These should be completed on the Financial Statements tab

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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