House Parties Unlimited makes and sells karaoke machines. At the beginning of December 2019, they had the following trial balance: Trial Balance - 12/01/2019 Dr. Cr. Cash 692,525 Accounts Receivable 30,200 Supplies 24,600 Inventory 402,071 Prepaid Advertising 2,000 Building 690,000 Accumulated Depreciation - Building 280,000 Equipment 795,000 Accumulated Depreciation - Equipment 580,000 Land 304,975 Accounts Payable 17,600 Common Stock ($100 par, 5,000 shares outstanding) 500,000 Additional Paid in Capital - Common Stock 500,000 Retained Earnings (12/31/18) 1,063,771 $ 2,941,371 $ 2,941,371 Using the following information, complete steps 1-5 in this workbook. During December 2019 the following transactions occurred related to Liability and Equity accounts: 1 On 12/1/19 HPU issued an additional 1,000 shares of common stock ($100 par) for $115 per share. 2 On 12/3/19 HPU issued $100,000 par, 5 year, 5% bonds for $98,450. 3 On 12/5/19 HPU repurchased 1,600 shares of common stock for $120 per share. 4 On 12/15/19 HPU sold 500 shares of Treasury stock for $130 per share 5 On 12/17/19 HPU issued $200,000 par, 5 year, 8% bonds for $215,125 6 On 12/20/19 HPU sold another 500 shares of Treasury stock for $118 per share 7 On 12/25/19 HPU Declared dividends of $.50 per share HINT: to calculate the amount you need shares outstanding. You started the year with 5,000 shares, issued some more, but then repurchased some and then sold them back! 8 On 12/31/19 HPU paid the Dividends declared on 12/25. 9 On 12/31/19 HPU paid the interest and principal payment (one month!) on the bonds issued on 12/3 and 12/17. Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger %24 Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger Step 4: Create the 2019 Balance Sheet and Income Statement Step 5: Create the Statement of Cash Flows using the Indirect Method. Hint: I've given you the 2018 Balance Sheet and "additional information" to solve the cash flows! Remember the steps!
House Parties Unlimited makes and sells karaoke machines. At the beginning of December 2019, they had the following trial balance: Trial Balance - 12/01/2019 Dr. Cr. Cash 692,525 Accounts Receivable 30,200 Supplies 24,600 Inventory 402,071 Prepaid Advertising 2,000 Building 690,000 Accumulated Depreciation - Building 280,000 Equipment 795,000 Accumulated Depreciation - Equipment 580,000 Land 304,975 Accounts Payable 17,600 Common Stock ($100 par, 5,000 shares outstanding) 500,000 Additional Paid in Capital - Common Stock 500,000 Retained Earnings (12/31/18) 1,063,771 $ 2,941,371 $ 2,941,371 Using the following information, complete steps 1-5 in this workbook. During December 2019 the following transactions occurred related to Liability and Equity accounts: 1 On 12/1/19 HPU issued an additional 1,000 shares of common stock ($100 par) for $115 per share. 2 On 12/3/19 HPU issued $100,000 par, 5 year, 5% bonds for $98,450. 3 On 12/5/19 HPU repurchased 1,600 shares of common stock for $120 per share. 4 On 12/15/19 HPU sold 500 shares of Treasury stock for $130 per share 5 On 12/17/19 HPU issued $200,000 par, 5 year, 8% bonds for $215,125 6 On 12/20/19 HPU sold another 500 shares of Treasury stock for $118 per share 7 On 12/25/19 HPU Declared dividends of $.50 per share HINT: to calculate the amount you need shares outstanding. You started the year with 5,000 shares, issued some more, but then repurchased some and then sold them back! 8 On 12/31/19 HPU paid the Dividends declared on 12/25. 9 On 12/31/19 HPU paid the interest and principal payment (one month!) on the bonds issued on 12/3 and 12/17. Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger %24 Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger Step 4: Create the 2019 Balance Sheet and Income Statement Step 5: Create the Statement of Cash Flows using the Indirect Method. Hint: I've given you the 2018 Balance Sheet and "additional information" to solve the cash flows! Remember the steps!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need help with step 3 please
![House Parties Unlimited makes and sells karaoke machines. At the beginning of
December 2019, they had the following trial balance:
Trial Balance - 12/01/2019
Dr.
Cr.
Cash
692,525
Accounts Receivable
30,200
Supplies
24,600
Inventory
402,071
Prepaid Advertising
2,000
Building
690,000
Accumulated Depreciation - Building
280,000
Equipment
795,000
Accumulated Depreciation - Equipment
580,000
Land
304,975
Accounts Payable
17,600
Common Stock ($100 par, 5,000 shares outstanding)
500,000
Additional Paid in Capital - Common Stock
500,000
Retained Earnings (12/31/18)
1,063,771
$ 2,941,371 $ 2,941,371
Using the following information, complete steps 1-5 in this workbook.
During December 2019 the following transactions occurred related to Liability and Equity accounts:
1 On 12/1/19 HPU issued an additional 1,000 shares of common stock ($100 par) for $115 per share.
2 On 12/3/19 HPU issued $100,000 par, 5 year, 5% bonds for $98,450.
3 On 12/5/19 HPU repurchased 1,600 shares of common stock for $120 per share.
4 On 12/15/19 HPU sold 500 shares of Treasury stock for $130 per share
5 On 12/17/19 HPU issued $200,000 par, 5 year, 8% bonds for $215,125
6 On 12/20/19 HPU sold another 500 shares of Treasury stock for $118 per share
7 On 12/25/19 HPU Declared dividends of $.50 per share
HINT: to calculate the amount you need shares outstanding. You started the year with 5,000 shares, issued some more, but then
repurchased some and then sold them back!
8 On 12/31/19 HPU paid the Dividends declared on 12/25.
9 On 12/31/19 HPU paid the interest and principal payment (one month!) on the bonds issued on 12/3 and 12/17.
Step 1: Write out the Journal entries for #s 1-6.
Check figure on Entries: Total debits & credits = $754,301
Step 2: Create the amortization tables for the first 3 years' payments
using the straight-line method for the Bonds Payable. Assume annual payments on 12/31.
Step 3: Post the entries to the General Ledger
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1651344-6776-4fb4-9442-6e6e7d873f31%2F2d26cc73-41a4-42f1-aa0e-cfb338a14625%2Ficdfbv.png&w=3840&q=75)
Transcribed Image Text:House Parties Unlimited makes and sells karaoke machines. At the beginning of
December 2019, they had the following trial balance:
Trial Balance - 12/01/2019
Dr.
Cr.
Cash
692,525
Accounts Receivable
30,200
Supplies
24,600
Inventory
402,071
Prepaid Advertising
2,000
Building
690,000
Accumulated Depreciation - Building
280,000
Equipment
795,000
Accumulated Depreciation - Equipment
580,000
Land
304,975
Accounts Payable
17,600
Common Stock ($100 par, 5,000 shares outstanding)
500,000
Additional Paid in Capital - Common Stock
500,000
Retained Earnings (12/31/18)
1,063,771
$ 2,941,371 $ 2,941,371
Using the following information, complete steps 1-5 in this workbook.
During December 2019 the following transactions occurred related to Liability and Equity accounts:
1 On 12/1/19 HPU issued an additional 1,000 shares of common stock ($100 par) for $115 per share.
2 On 12/3/19 HPU issued $100,000 par, 5 year, 5% bonds for $98,450.
3 On 12/5/19 HPU repurchased 1,600 shares of common stock for $120 per share.
4 On 12/15/19 HPU sold 500 shares of Treasury stock for $130 per share
5 On 12/17/19 HPU issued $200,000 par, 5 year, 8% bonds for $215,125
6 On 12/20/19 HPU sold another 500 shares of Treasury stock for $118 per share
7 On 12/25/19 HPU Declared dividends of $.50 per share
HINT: to calculate the amount you need shares outstanding. You started the year with 5,000 shares, issued some more, but then
repurchased some and then sold them back!
8 On 12/31/19 HPU paid the Dividends declared on 12/25.
9 On 12/31/19 HPU paid the interest and principal payment (one month!) on the bonds issued on 12/3 and 12/17.
Step 1: Write out the Journal entries for #s 1-6.
Check figure on Entries: Total debits & credits = $754,301
Step 2: Create the amortization tables for the first 3 years' payments
using the straight-line method for the Bonds Payable. Assume annual payments on 12/31.
Step 3: Post the entries to the General Ledger
%24
![Step 1: Write out the Journal entries for #s 1-6.
Check figure on Entries: Total debits & credits = $754,301
Step 2: Create the amortization tables for the first 3 years' payments
using the straight-line method for the Bonds Payable. Assume annual payments on 12/31.
Step 3: Post the entries to the General Ledger
Step 4: Create the 2019 Balance Sheet and Income Statement
Step 5: Create the Statement of Cash Flows using the Indirect Method.
Hint: I've given you the 2018 Balance Sheet and "additional information" to solve the cash flows! Remember the steps!](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1651344-6776-4fb4-9442-6e6e7d873f31%2F2d26cc73-41a4-42f1-aa0e-cfb338a14625%2Fffmihfs.png&w=3840&q=75)
Transcribed Image Text:Step 1: Write out the Journal entries for #s 1-6.
Check figure on Entries: Total debits & credits = $754,301
Step 2: Create the amortization tables for the first 3 years' payments
using the straight-line method for the Bonds Payable. Assume annual payments on 12/31.
Step 3: Post the entries to the General Ledger
Step 4: Create the 2019 Balance Sheet and Income Statement
Step 5: Create the Statement of Cash Flows using the Indirect Method.
Hint: I've given you the 2018 Balance Sheet and "additional information" to solve the cash flows! Remember the steps!
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