FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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American Laser, Inc., reported the following account balances on January 1.
| Debit | Credit | |||||
| $ | 5,000 | |||||
| $ | 30,000 | |||||
| Additional Paid-in Capital | 90,000 | |||||
| Allowance for Doubtful Accounts | 2,000 | |||||
| Bonds Payable | 0 | |||||
| Buildings | 247,000 | |||||
| Cash | 10,000 | |||||
| Common Stock, 10,000 shares of $1 par | 10,000 | |||||
| Notes Payable (long-term) | 10,000 | |||||
| 120,000 | ||||||
| 0 | ||||||
| TOTALS | $ | 262,000 | $ | 262,000 | ||
The company entered into the following transactions during the year.
| Jan. | 15 | Issued 5,000 shares of $1 par common stock for $50,000 cash. | ||
| Jan. | 31 | Collected $3,000 from customers on account. | ||
| Feb. | 15 | Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. | ||
| Mar. | 15 | Reissued 2,000 shares of treasury stock for $24,000 cash. | ||
| Aug. | 15 | Reissued 600 shares of treasury stock for $4,600 cash. | ||
| Sept. | 15 | Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. | ||
| Oct. | 1 | Issued 100, 10-year, $1,000 bonds, at a quoted |
||
| Oct. | 3 | Wrote off a $2,000 balance due from a customer who went bankrupt. | ||
| Dec. | 29 | Recorded $230,000 of service revenue, all of which was collected in cash. | ||
| Dec. | 30 | Paid $200,000 cash for this year’s wages through December 31. Ignore payroll taxes and payroll deductions. | ||
| Dec. | 31 | Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) |
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