Homework Help is Here – Start Your Trial Now!
Business
Accounting
Swifty Corporation's balance sheet at December 31, 2024, is presented as follow SWIFTY CORPORATION Balance Sheet December 31, 2024 Cash 566,420 Accounts payable $69.120 Common stock ($10 Accounts receivable 122.850 216,000 par) Allowance for doubtful accounts (4,050) Retained earnings 343,990 Supplies 11.880 Land 108,000 Buildings 383,400 Accumulated depreciation-buildings (59.400 $629.100 $629.100 During 2025, the following transactions occurred. 1 On January 1, Swifty issued 3,240 shares of $40 par, 7% preferred stock for $132.840 2 On January 1, Swifty also issued 2.430 shares of the 510 par value common stock for $56,700. 3 Swifty performed services for $864,000 on account. 4 On April 1, 2025, Swifty collected fees of $97,200 in advance for services to be performed from April 1, 2025, to March 31 2026. 5. Swifty collected $745,200 from customers on account. 6. Swifty bought $94.770 of supplies on account. 7. Swifty paid $86.940 on accounts payable 8 Swifty reacquired 1,080 shares of its common stock on June 1 for $28 per share 9 Paid other operating expenses of $508,140 10. 11. On December 31, 2025, Swifty declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026 An account receivable of $4,590 which originated in 2024 is written off as uncollectible. Adjustment data: 1 A count of supplies indicates that $15,930 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above 3. The allowance for doubtful accounts should have a balance of $9,450 at year end 4. 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $27,000. The income tax rate is 30% (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount)

Swifty Corporation's balance sheet at December 31, 2024, is presented as follow SWIFTY CORPORATION Balance Sheet December 31, 2024 Cash 566,420 Accounts payable $69.120 Common stock ($10 Accounts receivable 122.850 216,000 par) Allowance for doubtful accounts (4,050) Retained earnings 343,990 Supplies 11.880 Land 108,000 Buildings 383,400 Accumulated depreciation-buildings (59.400 $629.100 $629.100 During 2025, the following transactions occurred. 1 On January 1, Swifty issued 3,240 shares of $40 par, 7% preferred stock for $132.840 2 On January 1, Swifty also issued 2.430 shares of the 510 par value common stock for $56,700. 3 Swifty performed services for $864,000 on account. 4 On April 1, 2025, Swifty collected fees of $97,200 in advance for services to be performed from April 1, 2025, to March 31 2026. 5. Swifty collected $745,200 from customers on account. 6. Swifty bought $94.770 of supplies on account. 7. Swifty paid $86.940 on accounts payable 8 Swifty reacquired 1,080 shares of its common stock on June 1 for $28 per share 9 Paid other operating expenses of $508,140 10. 11. On December 31, 2025, Swifty declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026 An account receivable of $4,590 which originated in 2024 is written off as uncollectible. Adjustment data: 1 A count of supplies indicates that $15,930 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above 3. The allowance for doubtful accounts should have a balance of $9,450 at year end 4. 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $27,000. The income tax rate is 30% (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I need help please with #10 and adjustments 1-5

Swifty Corporation's balance sheet at December 31, 2024, is presented as follow SWIFTY CORPORATION Balance Sheet December 31, 2024 Cash 566,420 Accounts payable $69.120 Common stock ($10 Accounts receivable 122.850 216,000 par) Allowance for doubtful accounts (4,050) Retained earnings 343,990 Supplies 11.880 Land 108,000 Buildings 383,400 Accumulated depreciation-buildings (59.400 $629.100 $629.100 During 2025, the following transactions occurred. 1 On January 1, Swifty issued 3,240 shares of $40 par, 7% preferred stock for $132.840 2 On January 1, Swifty also issued 2.430 shares of the 510 par value common stock for $56,700. 3 Swifty performed services for $864,000 on account. 4 On April 1, 2025, Swifty collected fees of $97,200 in advance for services to be performed from April 1, 2025, to March 31 2026. 5. Swifty collected $745,200 from customers on account. 6. Swifty bought $94.770 of supplies on account. 7. Swifty paid $86.940 on accounts payable 8 Swifty reacquired 1,080 shares of its common stock on June 1 for $28 per share 9 Paid other operating expenses of $508,140 10. 11. On December 31, 2025, Swifty declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026 An account receivable of $4,590 which originated in 2024 is written off as uncollectible. Adjustment data: 1 A count of supplies indicates that $15,930 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above 3. The allowance for doubtful accounts should have a balance of $9,450 at year end 4. 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $27,000. The income tax rate is 30% (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount)
Transcribed Image Text:Swifty Corporation's balance sheet at December 31, 2024, is presented as follow SWIFTY CORPORATION Balance Sheet December 31, 2024 Cash 566,420 Accounts payable $69.120 Common stock ($10 Accounts receivable 122.850 216,000 par) Allowance for doubtful accounts (4,050) Retained earnings 343,990 Supplies 11.880 Land 108,000 Buildings 383,400 Accumulated depreciation-buildings (59.400 $629.100 $629.100 During 2025, the following transactions occurred. 1 On January 1, Swifty issued 3,240 shares of $40 par, 7% preferred stock for $132.840 2 On January 1, Swifty also issued 2.430 shares of the 510 par value common stock for $56,700. 3 Swifty performed services for $864,000 on account. 4 On April 1, 2025, Swifty collected fees of $97,200 in advance for services to be performed from April 1, 2025, to March 31 2026. 5. Swifty collected $745,200 from customers on account. 6. Swifty bought $94.770 of supplies on account. 7. Swifty paid $86.940 on accounts payable 8 Swifty reacquired 1,080 shares of its common stock on June 1 for $28 per share 9 Paid other operating expenses of $508,140 10. 11. On December 31, 2025, Swifty declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026 An account receivable of $4,590 which originated in 2024 is written off as uncollectible. Adjustment data: 1 A count of supplies indicates that $15,930 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above 3. The allowance for doubtful accounts should have a balance of $9,450 at year end 4. 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $27,000. The income tax rate is 30% (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount)
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS