Post a closing entry and and prepare a balance sheet and an income statement. 1. Sell for $2,000,000 cash, 100,000 shares of $6 par value common stock 2. Borrow $1,750,000 cash from a bank 3. Buy equipment for a cash price of $1,700,000 4. Buy "on account" (accounts payable - no cash spent until bills paid) inventory totaling $2,750,000 5. Sell inventory on-hand which cost $1,800,000 for $3,000,000 "on account" (accounts receivable - no cash collected until cusomers pay invoices) 6. Collect $2,250,000 from customers (collect accounts receivable) 7. Pay $2,400,000 accounts payable owed to vendors. Please use a excel sheet to show the right solution. Appreciate your help. 8. Record ("accrue") $150,000 interest expense incurred but not yet due for payment 9. Record $100,000 depreciation expense 10. Pay $250,000 dividends 11. Pay cash wages of $300,000 12. Accrue your bonus of $125,000 due but not yet paid 13. Pay the $150,000 interest previously accrued 14. compute and record income taxes at a 30% rate. Payment due in the future. 15. Compute net income, close income statement and thereby "update" retained earnings. 16. Prepare an Income Statement for the period covered by the above 17. Prepare a Balance Sheet as of the end of the period.
1. Sell for $2,000,000 cash, 100,000 shares of $6 par value common stock
2. Borrow $1,750,000 cash from a bank
3. Buy equipment for a cash price of $1,700,000
4. Buy "on account" (accounts payable - no cash spent until bills paid) inventory totaling $2,750,000
5. Sell inventory on-hand which cost $1,800,000 for $3,000,000 "on account" (
6. Collect $2,250,000 from customers (collect accounts receivable)
7. Pay $2,400,000 accounts payable owed to vendors.
Please use a excel sheet to show the right solution. Appreciate your help.
8. Record ("accrue") $150,000 interest expense incurred but not yet due for payment
9. Record $100,000
10. Pay $250,000 dividends
11. Pay cash wages of $300,000
12. Accrue your bonus of $125,000 due but not yet paid
13. Pay the $150,000 interest previously accrued
14. compute and record income taxes at a 30% rate. Payment due in the future.
15. Compute net income, close income statement and thereby "update"
16. Prepare an Income Statement for the period covered by the above
17. Prepare a Balance Sheet as of the end of the period.
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