Thor Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2023, the following were the account balances of Thor Corporation: Cash Accounts Receivable Inventory (550 units) Van Furniture & Fixtures Total Debits Debits 55550 22000 104500 49500 16500 248050 During May 2023, the following transactions took place: May 1: Bought 176 desktop printers for $220 each on account. May 10: Sold 198 printers to Kang Inc. on account. May 12: Allowance for Doubtful Accounts Accumulated Depreciation (Van) Accumulated Depreciation (Furniture & Fixtures) Accounts Payable Common Shares Retained Earnings Total Credits May 1: Bought a van, paying $11550 cash as a down payment and signed a 10 month $38500, 9% note payable for the balance. The company paid $770 to have its company logo printed on the side of the van. The residual value is $6050. The old van was sold for $8800; it cost $49500 and acculumated depreciation up to the date of disposal was $44000. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days Accounts Receivable $28600 Credits 3300 Roxxon Corporation agreed to sign a 90-day note receivable to replace a $2750 accounts receivable due that day. The interest rate on the note is 6.05%. May 20: Sold 11 printers to Captain America Inc. using a VISA card to pay for the transaction. A 5.5% service fee is charged by VISA. May 22: Sold 99 printers to Bucky Barnes Public School on account. May 24: Returned for credit 8 damaged printers from Kang Inc., costing $165 each. May 28: Received payment in full from Kang Inc. for the balance owing. May 28: Wrote off as uncollectable $4675 of accounts receivable. May 29: Paid accounts payable, $12100. May 30: Recovered an accounts receivable that was written off in April, $715. 44000 5500 13750 22000 May 31: Paid operating expenses totalling $50050. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 10 years. The furniture & fixtures are depreciated using the straight-line method over 8 years. There is no residual value on the furniture and fixtures. 31-60 days 61-90 days $13200 $3025 159500 248050 90+ days $990

Thor Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2023, the following were the account balances of Thor Corporation: Cash Accounts Receivable Inventory (550 units) Van Furniture & Fixtures Total Debits Debits 55550 22000 104500 49500 16500 248050 During May 2023, the following transactions took place: May 1: Bought 176 desktop printers for $220 each on account. May 10: Sold 198 printers to Kang Inc. on account. May 12: Allowance for Doubtful Accounts Accumulated Depreciation (Van) Accumulated Depreciation (Furniture & Fixtures) Accounts Payable Common Shares Retained Earnings Total Credits May 1: Bought a van, paying $11550 cash as a down payment and signed a 10 month $38500, 9% note payable for the balance. The company paid $770 to have its company logo printed on the side of the van. The residual value is $6050. The old van was sold for $8800; it cost $49500 and acculumated depreciation up to the date of disposal was $44000. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days Accounts Receivable $28600 Credits 3300 Roxxon Corporation agreed to sign a 90-day note receivable to replace a $2750 accounts receivable due that day. The interest rate on the note is 6.05%. May 20: Sold 11 printers to Captain America Inc. using a VISA card to pay for the transaction. A 5.5% service fee is charged by VISA. May 22: Sold 99 printers to Bucky Barnes Public School on account. May 24: Returned for credit 8 damaged printers from Kang Inc., costing $165 each. May 28: Received payment in full from Kang Inc. for the balance owing. May 28: Wrote off as uncollectable $4675 of accounts receivable. May 29: Paid accounts payable, $12100. May 30: Recovered an accounts receivable that was written off in April, $715. 44000 5500 13750 22000 May 31: Paid operating expenses totalling $50050. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 10 years. The furniture & fixtures are depreciated using the straight-line method over 8 years. There is no residual value on the furniture and fixtures. 31-60 days 61-90 days $13200 $3025 159500 248050 90+ days $990

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

how to get the journal entries for may 20 and may 22 please

Other Information:
Required:
1) The selling price for each of the printers is $495.
2) Thor Corporation uses the FIFO method under the perpetual inventory system to account for inventory.
3) In the past, Thor Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee,
Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes
Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period.
1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2023. Place your answer under "Requirement 1"
in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is accurate. Do not use
abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. Explanations are not required.

Transcribed Image Text:Thor Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2023, the following were the account balances of Thor Corporation: Cash Accounts Receivable Inventory (550 units) Van Furniture & Fixtures Total Debits Debits 55550 22000 104500 49500 16500 May 10: Sold 198 printers to Kang Inc. on account. May 12: 248050 During May 2023, the following transactions took place: May 1: Bought 176 desktop printers for $220 each on account. Allowance for Doubtful Accounts Accumulated Depreciation (Van) Accumulated Depreciation (Furniture & Fixtures) Accounts Payable Common Shares Retained Earnings May 28: Received payment in full from Kang Inc. for the balance owing. May 28: Wrote off as uncollectable $4675 of accounts receivable. May 1: Bought a van, paying $11550 cash as a down payment and signed a 10 month $38500, 9% note payable for the balance. The company paid $770 to have its company logo printed on the side of the van. The residual value is $6050. The old van was sold for $8800; it cost $49500 and acculumated depreciation up to the date of disposal was $44000. Total Credits Roxxon Corporation agreed to sign a 90-day note receivable to replace a $2750 accounts receivable due that day. The interest rate on the note is 6.05%. May 20: Sold 11 printers to Captain America Inc. using a VISA card to pay for the transaction. A 5.5% service fee is charged by VISA. May 22: Sold 99 printers to Bucky Barnes Public School on account. May 24: Returned for credit 8 damaged printers from Kang Inc., costing $165 each. May 29: Paid accounts payable, $12100. May 30: Recovered an accounts receivable that was written off in April, $715. May 31: Paid operating expenses totalling $50050. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 10 years. The furniture & fixtures are depreciated using the straight-line method over 8 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days Accounts Receivable $28600 Estinated Percentage Uncollectable 1.1% Credits 3300 44000 5500 13750 22000 159500 248050 31-60 days 61-90 days $13200 $3025 4.4% 13.2% 90+ days $990 27.5%

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.