I need help answering A, B, C and D please! Instructions (You may want to set up
ID: 2428258 • Letter: I
Question
I need help answering A, B, C and D please!
Instructions
(You may want to set up T accounts to determine ending balances.)
(a) Prepare journal entries for the transactions listed above and adjusting entries.
(b) Prepare a General Ledger using the following format:
(c) Prepare an adjusted trial balance at December 31, 2010.
Totals $671,350
(d) Closing Entries are again REQUIRED
Use the following information to complete A, B and C:
Hiatt Corporation's balance sheet at December 31, 2009, is presented below.
HIATT CORPORATION
Balance Sheet
December 31, 2009
Cash $ 24,600 Accounts payable $ 25,600
Accounts receivable 45,500 Common stock ($10 par) 80,000
Allowance for doubtful accounts (1,500) Retained earnings 127,400
$233,000
Supplies 4,400
Land 40,000
Building 142,000
Accumulated depreciation-building (22,000)
$233,000
During 2010, the following transactions occurred.
1. On January 1, 2010, Hiatt issued 1,500 shares of $20 par, 7% preferred stock for $33,000.
2. On January 1, 2010, Hiatt also issued 900 shares of the $10 par value common stock for $21,000.
3. Hiatt performed services for $280,000 on account.
4. On April 1, 2010, Hiatt collected fees of $36,000 in advance for services to be performed from April 1, 2010, to March 31, 2011.
5. Hiatt collected $267,000 from customers on account.
6. Hiatt bought $35,100 of supplies on account.
7. Hiatt paid $32,200 on accounts payable.
8. Hiatt reacquired 400 shares of its common stock on June 1, 2010, for $38 per share.
9. Paid other operating expenses of $188,200.
10. On December 31, 2010, Hiatt declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2011.
11. An account receivable of $1,300 which originated in 2009 is written off as uncollectible.
Adjustment data:
1. A count of supplies indicates that $5,900 of supplies remain unused at year-end.
2. Recorded revenue earned from item 4 above.
3. The allowance for doubtful accounts should have a balance of $3,500 at year end.
4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000.
5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)
Gerenal Ledger
Cash Accounts Receivable Merchandise Inventory Supplies Equipment Date Debit Credit Date Debit Credit Date Debit Credit Date Debit Credit Date Debit Credit
Accounts Payable Salaries Payable Income Tax Payable Common Stock Retained Earnings Date Debit Credit Date Debit Credit Date Debit Credit Date Debit Credit Date Debit Credit
Sales Sales Discounts
Date Debit Credit Date Debit Credit
Explanation / Answer
Journals: ` Cash $33,000 preferred stock $30,000 premium of issue of preferred stock $3,000 jan2 2010 cash $21,000 common stock $9,000 premium of issue of common stock $12,000 jan 3 2010 Accounts receivable $280,000 service revenue $280,000 april 1 2010 unearned service revenue $36,000 service revenue $36,000 cash $267,000 Accounts receivable $267,000 supplies $35,100 Accounts payable $35,100 Accounts payable $32,200 cash $32,200 Treasury stock $15,200 cash $15,200 operating expenses $188,200 cash $188,200 dec 31 2010`` Dividends $12,300 diviends payable on common stock $10,200 Dividends payable on preferred stock $2,100 Supplies expenses $33,600 supplies $33,600 Allowances for doubtful debts $5,000 Accounts receivable $5,000 Depreciation expenses $4,400 Accumulated depreciation-Buildings $4,400 T accounts CASH ACCOUNT balance $24,600 preferred stock $30,000 accounts payable $32,200 premium onissue $3,000 treasury stock $15,200 common stock $9,000 operating expenses $188,200 premium onissue $12,000 Accoounts receivable $267,000 $110,000 $345,600 $345,600 ACCOUNTS RECEIVABLE Balance $45,500 allowances for accounts recei $5,000 service revenue $280,000 cash $267,000 $53,500 $325,500 $325,500 SUPPLIES ACCOUNT Balance $4,400 suplies expenses $33,600 Accounts payable $35,100 $5,900 $39,500 $39,500 LAND ACCOUNT Balance $40,000 BUILDINGS ACCOUNT Balance $142,000 ACCUMULATED DEPRECIATION Balance $22,000 depreciation expenses $4,400 $26,400 ACCOUNTS PAYABLE cash $32,200 Balance $25,600 supplies $35,100 $28,500 $60,700 $60,700 COMMON STOCK Balance $80,000 cash $9,000 $89,000 RETAINE D EARNINGS Balance $127,400 ALLOWANCES FORDOUBTFUL DEBTS balance $1,500 Accounts receivable $5,000 $3,500 $5,000 $5,000 PREFERREDSTOCK cash $30,000 PREMIUM ON ISSUE PREFERRED STOCK CASH $3,000 PREMIUM OF ISSUE OF COMMON STOCK cash $12,000 SERVICE REVENUE CASH $280,000 unearned service revenue $36,000 $316,000 $316,000 UNERNED SERVICE REVENUE service revenue $36,000 Treasury stock cash $15,200 OPERATING EXPENSES cash $188,200 DIVIDENDS dividends payable $12,300 DIVIDENDS PAYABLE dividends $12,300 SUPPLIES EXPENSES SUPPLIES $33,600 DEPRECIATION EXPENSES Accumulated depreciation $4,400 Income stastement Incomes: service revenue $316,000 Expenses: operating expenses $188,200 suplies expenses $33,600 Depreciation $4,400 Total expenses $226,200 Net income before taxes $89,800 ` Cash $33,000 preferred stock $30,000 premium of issue of preferred stock $3,000 jan2 2010 cash $21,000 common stock $9,000 premium of issue of common stock $12,000 jan 3 2010 Accounts receivable $280,000 service revenue $280,000 april 1 2010 unearned service revenue $36,000 service revenue $36,000 cash $267,000 Accounts receivable $267,000 supplies $35,100 Accounts payable $35,100 Accounts payable $32,200 cash $32,200 Treasury stock $15,200 cash $15,200 operating expenses $188,200 cash $188,200 dec 31 2010`` Dividends $12,300 diviends payable on common stock $10,200 Dividends payable on preferred stock $2,100 Supplies expenses $33,600 supplies $33,600 Allowances for doubtful debts $5,000 Accounts receivable $5,000 Depreciation expenses $4,400 Accumulated depreciation-Buildings $4,400Related Questions
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