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!

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I was needing help with the following accounting problem.

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
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!
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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