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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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With what's given, how did we get to that

Transcribed Image Text:Assets
Liabilities
Cash
22,500
Accounts Payable
8,200
Inventory
28,000
S/T Notes Payable
15,000
Accounts Receivable
6,000
Unearned Revenue
2,500
Office Supplies
200
Short Term
25,000
Total Current Liabilities
25,700
Investments
Total Current Assets
81,700
Owner's Equity
Common Stock
56,000
Total Owner's Equity
56,000
Total Liabilities & Owner's
Total Assets
81,700
81,700
Equity

Transcribed Image Text:13. The company began the year with the following balances:
Sales
$25,000
Accounts Receivable
$12,000
Inventory
$15,000
Accounts Payable
$3,000
S/T Notes Payable
$20,000
Interest Payable
$1,000
Taxes Payable
$2,000
Common Stock
$26,000
A. Record journal entries for the following transactions.
B. Determine the balance for each account.
C. Prepare a balance sheet.
a. Collected $6,000 owed from customers
b. Purchased $13,000 of inventory on account
c. Repaid $5,000 to the bank
d. Paid the total amount owed for interest
e. Paid one half of the total amount owed to suppliers
f. Purchased office supplies on account for $200 (not used this period)
g. Received $2,500 from a customer who will be shipped inventory next month
h. Paid the entire amount owed to the government for income taxes
i. Sold part of the company to investors for $30,000
j. Invested $25,000 of excess cash in a short term investment
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