Sanchez Company engaged in the following transactionsduring Year 1:1. Started the business by Issuing $12,500 of common stockfor cash.2. The company paid cash to purchase $7,600 of inventory.3. The company sold inventory that cost $5,000 for $10,150cash.4. Operating expenses incurred and paid during the year,$4,500.Sanchez Company engaged in the following transactionsduring Year 2:1. The company paid cash to purchase $10,800 of inventory.2. The company sold Inventory that cost $9,200 for $16,750cash.3. Operating expenses incurred and paid during the year,$5,500.Sanchez uses the perpetual inventory system.The balance in the inventory account shown on December 31,Year 2 is

Step 1:Under the perpetual inventory system, all purchase related with the cost and discount is…

Answered: Sanchez Company engaged in the…

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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Gibson Company engaged in the following transactions for Year 1. The beginning cash balance was $28,100 and the ending cash balance was $74,991. 1. Sales on account were $283,100. The beginning receivables balance was $94,700 and the ending balance was $77,000. 2. Salaries expense for the period was $55,460. The beginning salaries payable balance was $3,815 and the ending balance was $2,180. 3. Other operating expenses for the period were $120,170. The beginning other operating expenses payable balance was $4,860 and the ending balance was $9,181. 4. Recorded $19,330 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $14,340 and $33,670, respectively. 5. The Equipment account had beginning and ending balances of $211,970 and $238,570, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $48,500 and $150,500, respectively. There were no payoffs of…
Holloway Company earned $6,200 of service revenue on account during Year 1. The company collected $5,270 cash from accounts recievable during Year 1. a. the balance of the accounts recievable that would be reported on the Decmeber 31,Year1,balance sheet b. the amount of net income that would be reported on the Year 1 income statement. c. the amount of net cash flow from operating activites that would be reported on the Year 1 statement of cash flows d. the amount of retained earnings that would be reported on the Year 1 balance sheet
The following transactions pertain to year 1, the first-year operations of Munoz Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions. 1. Acquired $4,100 cash by issuing common stock. 2. Paid $720 for materials used to produce inventory. 3. Paid $1,930 to production workers. 4. Paid $1,568 rental fee for production equipment. 5. Paid $90 to administrative employees. 6. Paid $119 rental fee for administrative office equipment. 7. Produced 380 units of inventory of which 230 units were sold at a price of $13 each. Required Prepare an Income Statement me statement and a balance sheet in accordance with AP. Complete this question by entering your answer in the tabs below. Assets Balance Sheet Prepare a balance sheet in accordance with GAAP. Note: Do not round your intermediate calculations. X Answer is complete but not entirely correct. MUNOZ COMPANY Balance Sheet as of 12/31/Year 1 Cash Finished goods inventory Total assets…
nces Blooming Flower Company was started in Year 1 when it acquired $60,500 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Required: Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Complete this question by entering your answers in the tabs below. Balance Sheets Assets Cash Merchandise inventory Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Total assets Liabilities Stockholders' equity Common stock Retained earnings Year 1 $ 22,200 26,400 12,500…
On September 1. Year 1, Western Company loaned $36,600 cash to Eastern Company. The one year note carried a 6% rate of interest. The amount of interest revenue on the income statement and the amount of cash flow from operating activities shown on Western's Year 2 financial statements would be Multiple Choice $732 interest revenue and $2196 cash inflow from operating activmes $1.464 imerest revenue and $2,196 cash inflow from operating activities
Blooming Flower Company was started in Year 1 when it acquired $61,700 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Required: Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Complete this question by entering your answers in the tabs below. Balance Sheets Assets Cash Merchandise inventory Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Total assets Liabilities Stockholders' equity Common stock Retained earnings Year 1 $ 22,600 27,000 13,200 5,490…
General Accounting
Blooming Flower Company was started in Year 1 when it acquired $61,400 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Balance Sheets Assets Cash Required Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Merchandise inventory Complete this question by entering your answers in the tabs below. Total assets Liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 1 $22,300 26,500 12,400 5,310 $ 60,290 9,900 Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting…
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Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $90,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $156,000 for $310,000 on account. Collected $278,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $52,000 of salaries expense for the year. Paid other operating expenses of $68,000. Sage 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 $ 19,200 0.01 0–30 8,000 0.05 31–60 1,600 0.10 61–90 1,600 0.20 Over 90 days 1,600 0.50 Required Organize the transaction data in accounts under an accounting equation. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. What is the net realizable…
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Steel Corporation uses the cash basis of accounting to record transactions. Steel collected $950,000 from its customers during the current year. Customers owed Steel $60,000 of accounts receivable at the beginning of the year and $80,000 of accounts receivable at the end of the year. What is Steel's sales revenue for the year converted to the accrual basis of accounting?

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