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I want # 3 required to be answered.

I want # 3 required to be answered.

FINANCIAL ACCOUNTING
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 want # 3 required to be answered.
SEN ACC 202 ACC Cycle set This is to be prepared using pencil only on the provided templates and lined or graph paper. Submit scans or photos of your complete project in Canvas. Superior Services began operations on 1/1/2018. Their annual reporting period ends 12/31. The that balance at year end 12/31/2019 follows: Account title Debit Credit Cash 3,000 Accounts receivable 6,000 Allowance for doubtful accounts 1,000 Job supplies 14,000 Trucks 17,000 Equipment Accumulated Depreciation 81,000 23,000 Land 15,000 Accounts payable 13,000 Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (16,000 shares, $0.25 par value) Additional paid-in capital Retained earnings 4,000 75,000 20,000 Dividends Service revenue Wages expense Supplies expense Bad debt expense Interest expense Depreciation expense Income tax expense Misc. expenses 136,000 136,000 Totals Transactions during 2020: a. Issued 4,000 additional shares of common stock for cash at $1 per share on 1/2/2020. b. Earned $210,000 in sales revenues for 2020. $47,000 on account and the remainder was paid in cash.
Transcribed Image Text:SEN ACC 202 ACC Cycle set This is to be prepared using pencil only on the provided templates and lined or graph paper. Submit scans or photos of your complete project in Canvas. Superior Services began operations on 1/1/2018. Their annual reporting period ends 12/31. The that balance at year end 12/31/2019 follows: Account title Debit Credit Cash 3,000 Accounts receivable 6,000 Allowance for doubtful accounts 1,000 Job supplies 14,000 Trucks 17,000 Equipment Accumulated Depreciation 81,000 23,000 Land 15,000 Accounts payable 13,000 Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (16,000 shares, $0.25 par value) Additional paid-in capital Retained earnings 4,000 75,000 20,000 Dividends Service revenue Wages expense Supplies expense Bad debt expense Interest expense Depreciation expense Income tax expense Misc. expenses 136,000 136,000 Totals Transactions during 2020: a. Issued 4,000 additional shares of common stock for cash at $1 per share on 1/2/2020. b. Earned $210,000 in sales revenues for 2020. $47,000 on account and the remainder was paid in cash.
$15,000 cash was paid for land. V C. d. Purchased another truck with $23,000 cash. A Purchased $27,000 supplies on account. VM On 3/1/2020, $30,000 cash was borrowed on a two-year 8% note payable. V е. f. a Incurred $110,000 in miscellaneous expenses for 2020, $20,000 on credit and the rest paid in cash. h. Collected $34,000 owned on account. in Paid $26,000 towards accounts payable. i. i, Signed a $2,000 one-year service contract for work to begin on 2/1/2021. k. Declared and paid $20,000 in cash dividends. Adjusting entries: Interest accrued on the notes payable in step f. M: off during the year. A а. b. $3,000 of bad debt was $15,000 in wages earned but will not be paid until 1/3/2021. u $15,000 in supplies remained on 12/31/2020. n с. d. e. $7,000 depreciation on equipment for 2020. f. $8,000 in income taxes for 2020 will be paid in 2021. g. $3,000 of the A/R is estimated to be uncollectable. Required: 1. Set up T-accounts for the trial balance accounts and enter beginning balances. 2. Prepare journal entries for the 2020 transactions and post them to the ledger. 3. Prepare and post the adjusting entries. 4. Prepare an adjusted trial balance 5. Prepare the income statement, balance sheet, statement of cash flows, and statement of stockholder's equity for the year 2020. 6. Journalize and post the closing entries. 7. Compute the following ratios for 2020 and briefly explain what they suggest about the company (round to 2 decimals). a. Current ratio b. Net profit margin C. Total asset turnover Check numbers: Adjusted trial balance total debits = $435,000, Total liabilities and equity should equal $209,000.
Transcribed Image Text:$15,000 cash was paid for land. V C. d. Purchased another truck with $23,000 cash. A Purchased $27,000 supplies on account. VM On 3/1/2020, $30,000 cash was borrowed on a two-year 8% note payable. V е. f. a Incurred $110,000 in miscellaneous expenses for 2020, $20,000 on credit and the rest paid in cash. h. Collected $34,000 owned on account. in Paid $26,000 towards accounts payable. i. i, Signed a $2,000 one-year service contract for work to begin on 2/1/2021. k. Declared and paid $20,000 in cash dividends. Adjusting entries: Interest accrued on the notes payable in step f. M: off during the year. A а. b. $3,000 of bad debt was $15,000 in wages earned but will not be paid until 1/3/2021. u $15,000 in supplies remained on 12/31/2020. n с. d. e. $7,000 depreciation on equipment for 2020. f. $8,000 in income taxes for 2020 will be paid in 2021. g. $3,000 of the A/R is estimated to be uncollectable. Required: 1. Set up T-accounts for the trial balance accounts and enter beginning balances. 2. Prepare journal entries for the 2020 transactions and post them to the ledger. 3. Prepare and post the adjusting entries. 4. Prepare an adjusted trial balance 5. Prepare the income statement, balance sheet, statement of cash flows, and statement of stockholder's equity for the year 2020. 6. Journalize and post the closing entries. 7. Compute the following ratios for 2020 and briefly explain what they suggest about the company (round to 2 decimals). a. Current ratio b. Net profit margin C. Total asset turnover Check numbers: Adjusted trial balance total debits = $435,000, Total liabilities and equity should equal $209,000.
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