Homework Help is Here – Start Your Trial Now!
Business
Accounting
Trevor Company's balance sheet for December 31, 20XO is as follows: Cash 100 Accounts Receivable 200 Interest Receivable 25 Inventory Notes Receivable (long term) Equipment, at cost Accumulated depreciation, Equipment Equipment, net Total assets 150 500 400 150 250 $1,225 Accounts payable Wages payable 140 20 Unearned sales revenue 40 Paid-in-capital Retained income 600 425 Total liabilities and $1,225 stockholder's equity The following summarized transactions occurred during 20X1: a. Purchased merchandise inventory on credit, $700. b. Delivered merchandise to customers who had paid in advance as of December 31, 20X0. c. Sales of merchandise (all on credit and excluding transaction b) during 20X1 were $3,000. d. The cost of merchandise sold (including that in transaction b) during 20X1 was $900. с. e. Collection from credit customers was $2,500. f. Interest on notes receivable of 12% per annum was collected each August 1. g. Cash payment to suppliers, $800 (see item: a) h. Cash payment for wages during 20X1 was $250. i. New equipment was purchased on December 10 for $300 in cash. Cash dividend of $50 was declared on December 20, 20X1. The payment date of dividends was January 10, 20X2. j.

Trevor Company's balance sheet for December 31, 20XO is as follows: Cash 100 Accounts Receivable 200 Interest Receivable 25 Inventory Notes Receivable (long term) Equipment, at cost Accumulated depreciation, Equipment Equipment, net Total assets 150 500 400 150 250 $1,225 Accounts payable Wages payable 140 20 Unearned sales revenue 40 Paid-in-capital Retained income 600 425 Total liabilities and $1,225 stockholder's equity The following summarized transactions occurred during 20X1: a. Purchased merchandise inventory on credit, $700. b. Delivered merchandise to customers who had paid in advance as of December 31, 20X0. c. Sales of merchandise (all on credit and excluding transaction b) during 20X1 were $3,000. d. The cost of merchandise sold (including that in transaction b) during 20X1 was $900. с. e. Collection from credit customers was $2,500. f. Interest on notes receivable of 12% per annum was collected each August 1. g. Cash payment to suppliers, $800 (see item: a) h. Cash payment for wages during 20X1 was $250. i. New equipment was purchased on December 10 for $300 in cash. Cash dividend of $50 was declared on December 20, 20X1. The payment date of dividends was January 10, 20X2. j.

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
Please help me
Trevor Company's balance sheet for December 31, 20XO is as follows: Cash 100 Accounts Receivable 200 Interest Receivable 25 Inventory Notes Receivable (long term) Equipment, at cost Accumulated depreciation, Equipment Equipment, net Total assets 150 500 400 150 250 $1,225 Accounts payable Wages payable 140 20 Unearned sales revenue 40 Paid-in-capital 600 Retained income 425 Total liabilities and $1,225 stockholder's equity The following summarized transactions occurred during 20X1: Purchased merchandise inventory on credit, $700. b. Delivered merchandise to customers who had paid in advance as of December 31, 20X0. а. с. Sales of merchandise (all on credit and excluding transaction b) during 20X1 were $3,000. d. The cost of merchandise sold (including that in transaction b) during 20X1 was $900. е. Collection from credit customers was $2,500. f. Interest on notes receivable of 12% per annum was collected each August 1. g. Cash payment to suppliers, $800 (see item: a) h. Cash payment for wages during 20X1 was $250. New equipment was purchased on December 10 for $300 in cash. i. j. Cash dividend of $50 was declared on December 20, 20X1. The payment date of dividends was January 10, 20X2. The following adjustments were made on December 31, 20X1: k. Accrual of interest receivable (to be computed, see item f). 1. Depreciation for 20X1, $100
Transcribed Image Text:Trevor Company's balance sheet for December 31, 20XO is as follows: Cash 100 Accounts Receivable 200 Interest Receivable 25 Inventory Notes Receivable (long term) Equipment, at cost Accumulated depreciation, Equipment Equipment, net Total assets 150 500 400 150 250 $1,225 Accounts payable Wages payable 140 20 Unearned sales revenue 40 Paid-in-capital 600 Retained income 425 Total liabilities and $1,225 stockholder's equity The following summarized transactions occurred during 20X1: Purchased merchandise inventory on credit, $700. b. Delivered merchandise to customers who had paid in advance as of December 31, 20X0. а. с. Sales of merchandise (all on credit and excluding transaction b) during 20X1 were $3,000. d. The cost of merchandise sold (including that in transaction b) during 20X1 was $900. е. Collection from credit customers was $2,500. f. Interest on notes receivable of 12% per annum was collected each August 1. g. Cash payment to suppliers, $800 (see item: a) h. Cash payment for wages during 20X1 was $250. New equipment was purchased on December 10 for $300 in cash. i. j. Cash dividend of $50 was declared on December 20, 20X1. The payment date of dividends was January 10, 20X2. The following adjustments were made on December 31, 20X1: k. Accrual of interest receivable (to be computed, see item f). 1. Depreciation for 20X1, $100
Required 1. Analyze the above transactions. Use the balance sheet equation format (spread sheet). 2. Prepare income statement for the year 20X1. Assume that the company does not have to pay taxes. 3. Also prepare the statement of cash flows for 20X1. Use the direct method, i.e. list separately the cash inflow/outflow entries for operations, investing, and financing activities. (Note: Each entry carries partial points. If your totals do not balance because of a wrong entry for a transaction, you will be penalized for only that entry and not the whole problem. If you think that entry is correct, do not change it just to make the final total to balance.) your
Transcribed Image Text:Required 1. Analyze the above transactions. Use the balance sheet equation format (spread sheet). 2. Prepare income statement for the year 20X1. Assume that the company does not have to pay taxes. 3. Also prepare the statement of cash flows for 20X1. Use the direct method, i.e. list separately the cash inflow/outflow entries for operations, investing, and financing activities. (Note: Each entry carries partial points. If your totals do not balance because of a wrong entry for a transaction, you will be penalized for only that entry and not the whole problem. If you think that entry is correct, do not change it just to make the final total to balance.) your
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
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.
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