Required information [The following information applies to the questions displayed below.] The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Cash Accounts Receivable. Prepaid Insurance Land 4. May 6 5. 6. September 10 7. October 31 8. November 20 9. December 30 Debits $25,500 16,300 13,800 157,000 July 15 Credits Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $212,600 The following is a summary of the transactions for the year: 1. January 9 2. February 12 3. April 25 $7,600 6,700 152,000 46,300 $212,600 Provide storage services for cash, $143,100, and on account, $56,700. Collect on accounts receivable, $52,400. Receive cash in advance from customers, $13,800. Purchase supplies on account, $11,000. Pay property taxes, $9,400. Pay on accounts payable, $12,300. Pay salaries, $132,600. Issue shares of common stock in exchange for $36,000 cash. Pay $3,700 cash dividends to stockholders.
Required information [The following information applies to the questions displayed below.] The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Cash Accounts Receivable. Prepaid Insurance Land 4. May 6 5. 6. September 10 7. October 31 8. November 20 9. December 30 Debits $25,500 16,300 13,800 157,000 July 15 Credits Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $212,600 The following is a summary of the transactions for the year: 1. January 9 2. February 12 3. April 25 $7,600 6,700 152,000 46,300 $212,600 Provide storage services for cash, $143,100, and on account, $56,700. Collect on accounts receivable, $52,400. Receive cash in advance from customers, $13,800. Purchase supplies on account, $11,000. Pay property taxes, $9,400. Pay on accounts payable, $12,300. Pay salaries, $132,600. Issue shares of common stock in exchange for $36,000 cash. Pay $3,700 cash dividends to stockholders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
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![Required information
[The following information applies to the questions displayed below.]
The general ledger of Zips Storage at January 1, 2024, includes the following account balances:
Accounts
Cash
Accounts Receivable
Prepaid Insurance.
Land
Accounts Payable
Deferred Revenue.
Common Stock
Retained Earnings
Totals
Debits
$25,500
16,300
13,800
157,000
1. January 9
2. February 12
3. April 25
4. May 6
5. July 15
6. September 10
7. October 31
8. November 20
9. December 30.
Credits
$7,600
6,700
152,000
46,300
$212,600
$212,600
The following is a summary of the transactions for the year:
Provide storage services for cash, $143,100, and on account, $56,700.
Collect on accounts receivable, $52,400.
Receive cash in advance from customers, $13,800.
Purchase supplies on account, $11,000.
Pay property taxes, $9,400.
Pay on accounts payable, $12,300.
Pay salaries, $132,600.
Issue shares of common stock in exchange for $36,000 cash..
Pay $3,700 cash dividends to stockholders.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4385e2ca-8485-4310-b38e-9d03a6e64df2%2F75652131-4638-4c84-bbe8-0d234da564d7%2Fxj1mfaq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The general ledger of Zips Storage at January 1, 2024, includes the following account balances:
Accounts
Cash
Accounts Receivable
Prepaid Insurance.
Land
Accounts Payable
Deferred Revenue.
Common Stock
Retained Earnings
Totals
Debits
$25,500
16,300
13,800
157,000
1. January 9
2. February 12
3. April 25
4. May 6
5. July 15
6. September 10
7. October 31
8. November 20
9. December 30.
Credits
$7,600
6,700
152,000
46,300
$212,600
$212,600
The following is a summary of the transactions for the year:
Provide storage services for cash, $143,100, and on account, $56,700.
Collect on accounts receivable, $52,400.
Receive cash in advance from customers, $13,800.
Purchase supplies on account, $11,000.
Pay property taxes, $9,400.
Pay on accounts payable, $12,300.
Pay salaries, $132,600.
Issue shares of common stock in exchange for $36,000 cash..
Pay $3,700 cash dividends to stockholders.
Transcribed Image Text:8-a. Prepare the income statement for the year ended December 31, 2024.
Service Revenue
Expenses:
Salaries Expense
Property Tax Expense
Supplies Expense
Total Expenses
Net Income
ZIPS STORAGE
Income Statement
For the Year Ended December 31, 2024
Show Transcribed Text
Current assets:
Total current assets
Long-term assets:
8-b. Prepare the classified balance sheet for the year ended December 31, 2024.
ZIPS STORAGE
Balance Sheet
December 31, 2024
Total assets
Assets
$
0
$ 132,600
9,400
11,000
0
Ć
Current liabilities:
Total current liabilities
$ 199,800
153,000
$ 46,800
Liabilities
Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity
$
0
0
0
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