Sage Incorporated experienced the following transactions for Year 1, its first year of operations:Issued common stock for $90,000 cash.Purchased $195,000 of merchandise on account.Sold merchandise that cost $168,000 for $334,000 on account.Collected $300,000 cash from accounts receivable.Paid $175,000 on accounts payable.Paid $64,000 of salaries expense for the year.Paid other operating expenses of $80,000.Sage adjusted the accounts using the following information from an accounts receivable aging scheduleNumber of Days Past DueAmountPercent Likely to Be UncollectibleAllowance BalanceCurrent$20,4000.01 0 to 308, 5000.05 31 to 601,7000.10 61 to 901,7000.20 Over 90 days1, 7000.50RequiredOrganize the transaction data in accounts under an accounting equation.Prepare the income statement, statement of changes in stockholders' equity, balance sheet, andstatement of cash flows for Sage Incorporated for Year 1.What is the net realizable value of the accounts receivable at December 31, Year 1?

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Answered: Sage Incorporated experienced the…

College Accounting, Chapters 1-27

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Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

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Problem 2CE

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Malco Enterprises issued $10,000 of common stock when the company was started. In addition, Malco borrowed $36,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $72,500 of revenue on account in Year 1 and $85,200 of revenue on account in Year 2. Cash collections of accounts receivable were $61,300 in Year 1 and $71,500 in Year 2. Malco paid $39,000 of other operating expenses in Year 1 and $45,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date. Organize the information in accounts under an accounting equation. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? What amount of interest expense would be reported on the Year 1 income statement?
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[The following information applies to the questions displayed below.] Roth Incorporated experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $245,000 of merchandise on account. Sold merchandise that cost $152,000 for $302,000 on account. Collected $244,000 cash from accounts receivable. Paid $230,000 on accounts payable. Paid $48,000 of salaries expense for the year. Paid other operating expenses of $37,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule. Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $34,800 0.01 0 to 30 14,500 0.05 31 to 60 2,900 0.10 61 to 90 2,900 0.20 Over 90 days 2,900 0.50 b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Roth Incorporated for Year 1. could you take a look at…
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Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $90,000 cash. 2. Purchased $195,000 of merchandise on account. 3. Sold merchandise that cost $162,000 for $322,000 on account. 4. Collected $288,000 cash from accounts receivable. 5. Paid $175,000 on accounts payable. 6. Paid $64,000 of salaries expense for the year. 7. Paid other operating expenses of $80,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $20,400 8,500 1,700 1,700 1,700 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.20 0.50 Allowance Balance Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. c. What is the net realizable value of the accounts…

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