With this information create Journal Entries, T Accounts/Trial Balance, and Financial Statements Balance Sheet for end of 2019                       Assets                   Cash       77,250            Accounts Receivable (net of allowance of 7200)   237,884            Inventory   45,500    (1000 units at $45.50 each) Prepaid Insurance   1,600            Supplies       1,625               Total Current Assets   363,859                               Property, Plant and Equipment, Net   177,500            Land       32,000                                  Total Assets   573,359                               Liabilities               Accounts Payable   94,552            Unearned Revenue   45,200            Interest Payable   2,100            Salaries Payable   6,600               Total Current Liabilities   148,452                               Long Term Debt   246,100                               Total Liabilities   394,552                               Capital Stock   100,000                    Retained Earnings   78,807                                                  Total Liabilities and Stockholders Equity   573,359                                               Transactions for January of 2020    1/3/1900   Paid interest payable plus $3,000 toward long term debt 1/2/2020   Paid salaries payable 1/3/2020   Purchased inventory (500 units at $46) on credit 1/4/2020   Paid shipping on inventory of $250 1/6/2020   Purchased supplies on credit for $850 1/9/2020   Received $2,500 from customers for products to deliver in March 1/10/2020   Sold 600 units on credit with a sales price of $105 (assume perpetual LIFO) 1/15/2020   Purchased inventory (700 units at $47) 1/20/2020   Paid $41,600 on accounts payable 1/21/2020   Collected $121,350 in cash from customers in payment for earlier sales 1/22/2020   Wrote off accounts receivable for $815 1/25/2020   Sold 200 units on credit with a sales price of $105 (still perpetual LIFO) 1/26/2020   Paid wages to employees for work done in January $31,000 1/26/2020   Received utility bill for $7,200 for utilities used in January that will be paid in February 1/31/2020   Delivered 100 units of product to customers that they paid 10,000 for in 2019 (unearned revenue) 1/31/2020   Counted supplies and found $1,240 remaining 1/31/2020   Employees worked and earned $4,700 in January that will not be paid until February 1/31/2020   Interest at 12% per year on the long term debt (new balance) has not been paid 1/31/2020   The prepaid insurance will last 4 months into 2020 before a new policy will be required 1/31/2020   The allowance for bad debts is estimated at 4% of total accounts receivable 1/31/2020   A count of inventory showed that 50 units were damaged such that they are worthless and will be thrown away

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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With this information create Journal Entries, T Accounts/Trial Balance, and Financial Statements

Balance Sheet for end of 2019                      
Assets                  
Cash       77,250           
Accounts Receivable (net of allowance of 7200)   237,884           
Inventory   45,500    (1000 units at $45.50 each)
Prepaid Insurance   1,600           
Supplies       1,625           
   Total Current Assets   363,859           
                  
Property, Plant and Equipment, Net   177,500           
Land       32,000           
                  
   Total Assets   573,359           
                  
Liabilities              
Accounts Payable   94,552           
Unearned Revenue   45,200           
Interest Payable   2,100           
Salaries Payable   6,600           
   Total Current Liabilities   148,452           
                  
Long Term Debt   246,100           
                  
Total Liabilities   394,552           
                  
Capital Stock   100,000                   
Retained Earnings   78,807                   
                          
   Total Liabilities and Stockholders Equity   573,359                   
                          
Transactions for January of 2020
  
1/3/1900   Paid interest payable plus $3,000 toward long term debt
1/2/2020   Paid salaries payable
1/3/2020   Purchased inventory (500 units at $46) on credit
1/4/2020   Paid shipping on inventory of $250
1/6/2020   Purchased supplies on credit for $850
1/9/2020   Received $2,500 from customers for products to deliver in March
1/10/2020   Sold 600 units on credit with a sales price of $105 (assume perpetual LIFO)
1/15/2020   Purchased inventory (700 units at $47)
1/20/2020   Paid $41,600 on accounts payable
1/21/2020   Collected $121,350 in cash from customers in payment for earlier sales
1/22/2020   Wrote off accounts receivable for $815
1/25/2020   Sold 200 units on credit with a sales price of $105 (still perpetual LIFO)
1/26/2020   Paid wages to employees for work done in January $31,000
1/26/2020   Received utility bill for $7,200 for utilities used in January that will be paid in February
1/31/2020   Delivered 100 units of product to customers that they paid 10,000 for in 2019 (unearned revenue)
1/31/2020   Counted supplies and found $1,240 remaining
1/31/2020   Employees worked and earned $4,700 in January that will not be paid until February
1/31/2020   Interest at 12% per year on the long term debt (new balance) has not been paid
1/31/2020   The prepaid insurance will last 4 months into 2020 before a new policy will be required
1/31/2020   The allowance for bad debts is estimated at 4% of total accounts receivable
1/31/2020   A count of inventory showed that 50 units were damaged such that they are worthless and will be thrown away

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