The following information is provided for Steel Gage, Inc. at December 31, 2017:

Question

The following information is provided for Steel Gage, Inc. at December 31, 2017: Monthly Account Balances (in thousands of dollars) Accounts payable Accounts receivable Accrued wages payable Cash Common stock Dividends payable Interest payable Interest receivable Investments Land Long-term notes payable (due June 15, 2019) Prepaid expenses Other noncurrent assets Plant and equipment Retained earnings Short-term notes payable Supplies Balance 17,750 16,440 3,600 40,000 64,600 1,500 1,100 50 12,660 25,000 4,000 1,800 800 15,200 10,400 11,000 2,000 Steel Gage entered into the following transactions during January 2018: 1. Paid $20,000 for land to build a warehouse. 2. Purchased a delivery truck for in exchange for a $60,000, three-year note payable. 3. Issued 30.000 shares of common stock for $8 each. 4. Paid $11,000 on a short-term note payable plus $1,100 of accrued interest. 5. Purchased supplies worth $1,850 on account. 6. A stockholder sold $5,000 of her shares in Steel Gage to another investor 7. Redeemed a six-month $12.660 certificate of deposit held as an investment. Proceeds including accrued interest totaled $12,710. Purchased storage racks in exchange for $8,000 cash and a $5,000 note payable due 3/31/18. 8. 9. Built the warehouse and paid the contractor $220,000 in cash. 10. Paid dividends of $1,500.

Explanation / Answer

Balance sheet Assets Liabilities and stockholders equity Cash 40,000 Accounts payable $17,750 Accounts receivable 16,440 Accrued wages payable 3,600 Supplies 2,000 Dividends payable 1,500 Interest receivable 50 Interest payable 1,100 Prepaid expenses 1,800 Short-term notes payable 11,000 Investments 12,660 Long-term notes payable (due June 15, 2019) 4,000 Land 25,000 Common stock 64,600 Plant and equipment 15,200 Retained earnings 10,400 Other noncurrent assets 800 Total Assets 113,950 Total liabilities and stockhlders equity $113,950 Date Account Titles and explanation Debit Credit 1 Land $    20,000 Cash $                                                                              20,000 2 Motor vehicles $    60,000 Long term note payable $                                                                              60,000 3 Cash $ 240,000 (30000 x 8) Common Stock $                                                                            240,000 4 Interest Payable $      1,100 Short term notes payable $    11,000 Cash $                                                                              12,100 5 Supplies $      1,850 accounts payable $                                                                                1,850 6 NO entry needed, only name will be registered of new shareholder. 7 Cash $    12,710 Investments $                                                                              12,660 Interest receivable $                                                                                      50 8 Furniture and fixtures $    13,000 Cash $                                                                                8,000 Short term notes payable(3/31/18) $                                                                                5,000 9 Building $ 220,000 Cash $                                                                            220,000 10 Dividends payable $      1,500 Cash $                                                                                1,500 Accounts payable Bal. 17750 8 1850 Bal. 19600 Accounts Receivable Bal. 16440 Accrued wages payable Bal. 3600 Cash Bal. 40000 1 20000 3 240000 4 12100 7 12710 8 8000 9 220000 10 1500 Bal. 31110 Common Stock Bal. 64600 3 240000 Bal. 304600 Dividends payable 10 1500 Bal. 1500 Bal. 0 Interest Payable 4 1100 Bal. 1100 Bal. 0 Interest Receivable Bal. 50 7 50 Bal. 0 Investments bal. 12660 7 12660 bal. 0 land Bal. 25000 1 20000 bal. 45000 Long term notes payable Bal. 4000 2 60000 Bal. 64000 Prepaid Expenses Bal. 1800 Other noncurrent assets Bal. 800 Plant and equipment Bal. 15200 Retained earnings Bal. 10400 Short term notes payable 4 11000 Bal. 11000 8 5000 bal. 5000 Supplies Bal. 2000 5 1850 Bal. 3850 Motor Vehicles Bal. 0 2 60000 Bal. 60000 Furniture and Fixtures Bal. 0 8 13000 bal. 13000 Building Bal. 0 9 220000 Bal. 220000 Balance sheet Assets Liabilities Current Assets: Current Liabilities: Cash 31,110 Accounts payable $19,600 Accounts receivable 16,440 Accrued wages payable 3,600 Supplies 3,850 Short-term notes payable 5,000 Prepaid expenses 1,800 Total Current Liabilities: $28,200 Total Current Assets $                                                     53,200.0 Long term liabilities: Property plant & Equipment: Long-term notes payable 64,000 Land 45,000 Total Liabilities: $92,200 Building 220,000 Furnitures and fixtures 13,000 Stockholder;s Equity Plant and equipment 15,200 Common stock 304,600 Motor Vehicles 60,000 Retained earnings 10,400 Property plant and equipment -Net                                                          353,200 Total stockholder's equity 315,000 Other noncurrent assets                                                                 800 Total Assets 407,200 Total liabilities and stockhlders equity $407,200

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