Can I please get some help with this extra credit assingment do on 5/12 Extra Cr

Question

Can I please get some help with this extra credit assingment do on 5/12

Extra Credit 4

Can I please get some help with this extra credit assingment do on 5/12

Extra Credit 4

Citipo Corporation balance sheet at 12/31/15 is presented below. Citipo Corporation Balance Sheet 12/31/2015 Cash $ 16,500 Accounts payable $ 22,530 Merchandise Inventory      21,300 Common stock ($1 par)       8,000 Prepaid Insurance       1,400 Paid in capital in excess of par      64,000 Equipment    110,000 Retained earnings      18,870 Accumualed depreciation     (35,800) $113,400 $113,400 During 2016, the following transactions occurred: 1. Purchased $123,600 inventory on account. Perpetual is used. 2. Sales made on account to customers for $180,000 plus 5.5% sales tax. Cost of sales were $111,300. 3. Received $10,000 cash down payment for orders to be shipped next year. 4. Issued 10 year, $40,000 face, 8% bonds on 7/2/16 at 103. The bonds pay interest every 1/1 and 7/1. 5. Collected $160,000 on account. 6. Paid other operating expenses of $27,500. 7. Paid $121,030 on account. 8. Paid $8,000 to the state for some of the sales tax collected from customers. 9. On 1/1/16 sold equipment which cost $20,000 with accumulated depreciation of $8,500 for $4,000 cash. 10. Issued 1,100 shares of $100 par 8% preferred stock for $160,000 cash. 11. Purchased equipment on 7/1/16 for $80,000 for cash. 12. Purchased 400 shares of Citikonk common stock from a disgruntled shareholder for $40 per share. 13. Recorded wages and payroll taxes. Gross wages were $20,000, FICA tax was withheld at a 7.55% rate, federal income taxes (FIT) of $2,000 were withheld, state income taxes (SIT) of $500 were withheld. The Federal unemployment tax (FUTA) rate is 0.9% and the state unemployment (SUTA) rate is 3.5%. The net wage checks were given immediately to employees. The payroll taxes will be paid to the IRS and state in early January. Requirement A: i - Journalize 1 - 13 above ii - Post to the ledger iii - Prepare an unadjusted trial balance which will be used as the first 2 columns of a worksheet.      (See Requirement B.) ***Four Optional solution templates have been prepared to assist you. They can be accessed by clicking on     the Solution tabs below. Use of Microsoft Excel is optional. Hand prepared solutions are also acceptable. Requirement B: Using your unadjusted trial balance above and the following data for adjusting entries, prepare a 10 column worksheet similar to the one in the chapter 4 appendix of your text. (a) Depreciation on equipment purchased in previous years uses straight-line, 5 year life, no salvage value      For the 2016 purchase (11 above) use a useful life of 10 years, $15,000 salvage, double declining balance. (b) Accrue bond interest payable (Premium amortization too.). (c) The prepaid insurance relates to a policy purchased in 2015 that expires at a rate of $80 per month. (d) The company estimates that all accounts receivable are collectible. So don't worry about bad debts. Requirement C: Prepare a Statement of Cash Flows. Hints: In operating activities subtract gains and premium amortization.

Explanation / Answer

journal entry

1) purchased A/c ----- Dr $ 123600

To creditors A/c $ 123600

( being goods purchased on credit)

2) debtors A/c --- Dr. 189900

   To sales A/c 180000

   To sales Tax A/c 9900

( being goods sold on credit)

3) cash A/C --- Dr. 10000

To Account Received A/c 10000

4) Cash a/C ---- Dr. 41200

   To 8% Bond A/c 40000

   To Security primium A/c 1200

5) cash a/C -- dr 160000

To Debtors A/c 160000

6) opearting exp A/c dr 27500

To cash A/c 27500

7)   

Accounts payable A/c To cash A/c 121030 By Bal B/d 22530 To Bal C/d 25100 By Purchases A/c 123600 146130 146130 accounts Receivable A/c To sales A/c 189900 To Cash A/c 160000 To bal C/d 29900 189900 189900 Advances receiveed A/c To bal C/d 10000 By cash A/c 10000 10000 10000 Sales Tax A/c To Cash A/c 8000 By debtors A/c 9900 To Bal C/d 1900 9900 9900 8%, Bonds A/c To bal C/d 40000 By Cash A/c 40000 40000 40000 Security Premium A/c To bal C/d 115200 By bal B/d 64000 By Cash (8% Bond) 1200 By Cash(prefered share) 50000 115200 115200 operating Expenses A/c To Cash A/c 27500 To profit & loss a/c 27500 27500 27500 Equipment A/c To Bal B/d 110000 By Cash A/c 4000 To Cash A/c 80000 By Accu dep. A/c 8500 By loss on sale 7500 By Bal c/d 170000 190000 190000 8% preference Shares A/c To Bal C/d 110000 By Cash A/c 110000 110000 110000 Cash A/c To bal B/d 16500 By operating Expenses 27500 To advance receive 10000 By Creditors 121030 To 8% bond A/c 40000 By Sales Tax 8000 To Security premium 1200 By equipments 80000 To debtors A/c 160000 By Citikonk Shares 16000 To equipment 4000 By Wages 18596 To prefeered share 110000 By FICA tax 1404 To Security premium 50000 By Bal c/d 119170 391700 391700 Inventoty A/c To Bal B/d 21300 To Sales 111300 To purchase 123600 To Bal c/d 33600 144900 144900 Unadjusted Trial Balnce Particulars Amount Particulars Amount Common Stock 8000 Inventory 33600 prefeered stock 110000 Account receivable 29900 Bonds 40000 opearting Expenses 27500 Security premium 115200 Equipments 170000 Account payable 25100 Cash 119170 outstanding liability 2500 Sales 189900 Advance received 10000 Sales Tax liability 1900 Accumulated Depric 27300 Purchase 123600 Retained earning 87570

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