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Concept explainers
• LO3–2, LO3–3
The following is the ending balances of accounts at December 31, 2018, for the Weismuller Publishing Company.
Account Title | Debits | Credits |
Cash | $ 65,000 | |
160,000 | ||
Inventories | 285,000 | |
Prepaid expenses | 148,000 | |
Machinery and equipment | 320,000 | |
$ 110,000 | ||
Investments | 140,000 | |
Accounts payable | 60,000 | |
Interest payable | 20,000 | |
Deferred revenue | 80,000 | |
Taxes payable | 30,000 | |
Notes payable | 200,000 | |
Allowance for uncollectible accounts | 16,000 | |
Common stock | 400,000 | |
202,000 | ||
Totals | $1,118,000 | $1,118,000 |
Additional Information:
1. Prepaid expenses include $120,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
2. Investments include $30,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $110,000 includes investments in marketable equity securities that the company intends to sell in the next year.
3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
4. The notes payable account consists of the following:
a. a $40,000 note due in six months
b. a $100,000 note due in six years
c. a $60,000 note due in three annual installments of $20,000 each, with the next installment due August 31, 2019
5. The common stock account represents 400,000 shares of no par value common stock issued and outstanding. The corporation has 800,000 shares authorized.
Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018.
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Chapter 3 Solutions
INTERMEDIATE ACCOUNTING (LL) W/CONNECT
- ayco Inc. started its operations in 2022. Its sales during 2022, all on account, totalled $700,000. The company collected $500,000 in cash from customers during the year and wrote off $8,000 in uncollectible accounts. The company set up an allowance for doubtful accounts at December 31, 2022, its fiscal year-end, and determined the account balance to be $14,000. The unadjusted balances of selected accounts at December 31, 2023 are as follows: Accounts receivable $ 300,000 Allowance for doubtful accounts (debit) 10,000 Sales revenue (including 80 percent in sales on account) 800,000 Aging of the accounts receivable on December 31, 2023, resulted in an estimate of $11,000 in potentially uncollectible accounts. Required: 1. Prepare the journal entries to record all the transactions during 2022 and post them to appropriate T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)…arrow_forwardCalculate the sample size based on the specifications in Buhi's contract. Make sure it is within budget, reasonable to obtain, and that you use appropriate inputs relative to market research best practices. Use the calculator to adjust the sample size statement. Use the agreed-upon sample size in Buhi's contract: 996. In your secondary research, find the target population size (an estimate of those in the United States looking to purchase luggage in the category in the next two years). You will use this target population size for each sample size estimate. Adjust the provided sample size calculator inputs to find the rest of the figures that get you to the agreed-upon sample size. The caveats from Buhi are that you must: Use the market research standard for your confidence level. Use a confidence interval that is better than the market research standard for your confidence interval.arrow_forwardThe partnership of Keenan and Kludlow paid the following wages during this year: Line Item Description Amount M. Keenan (partner) $108,000 S. Kludlow (partner) 96,000 N. Perry (supervisor) 54,700 T. Lee (factory worker) 35,100 R. Rolf (factory worker) 27,200 D. Broch (factory worker) 6,300 S. Ruiz (bookkeeper) 26,000 C. Rudolph (maintenance) 5,200 In addition, the partnership owed $250 to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following: ound your answers to the nearest cent. a. Net FUTA tax for the partnership for this year b. SUTA tax for this yeararrow_forward
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