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Mulder Corporation's balance sheet at December 31, 2006 is presented below. Mulder Corporation Balance sheet

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Mulder Corporation's balance sheet at December 31, 2006 is presented below.;Mulder Corporation;Balance sheet;Decemeber 31, 2006;Cash $13,100 Accounts payable $8,750;Accounts receivable 19,780 Common Stock 20,000;Allowance for doubtful accounts (1000) Retained earnings 12,530;Merchandise inventory 9,400 $41,280;$41,280;During January 2007, the following transactions occurred. Mulder uses the perpetual inventory method.;Jan. 1 Mulder accepted a 4-month, 12% note from Alien Company in payment of Alien's $1000 account.;3 Mulder wrote off as uncollectible the accounts of Ex Corporation ($450) and Files Company ($230).;8 Mulder purchased $17,200 of inventory on account.;11 Mulder sold for $25,000 on account inventory that cost $15,000;15 Mulder sold inventory that cost $600 to Ben Borke for $1000. Borke charged this amount on his Visa First Bank card. The service fee charged Mulder by First Bank is 3%.;17 Mulder collected $21,900 from customers on account.;21 Mulder paid $16,300 on accounts payable.;24 Mulder received payment in full ($230) from Files Company on the account written off on January 3.;27 Mulder Purchased advertising supplies for $1,400 cash.;31 Mulder paid other operating expenses, $4218.;Adjustment data;1. Interest is recorded for the month on the note from January 1.;2. Bad debts are expected to be 6% of the January 31,2007, accounts receivable.;3. Account of advertising supplies on January 31, 2007, reveals that $560 remains unused.;4. The income tax rate is 30% (Hint: Prepare the income statement up to "Income before taxes" and multiply by 30% to compute the amount.);Instructions;(You may want to set up T accounts to determine ending balancing.);a) Prepare journal entries for the transactions listed above and adjusting entries.;b) Prepare an adjusted trial balance at January 31, 2007.;c) Prepare an income statement and a retained earnings statement for the month ending January 31,2007, and a classified balance sheet as of January 31,2007.;Mulder Corporation???s balance sheet at Decemeber 31, 2006 is presented;below.;Mulder Corporation;Balance sheet;Decemeber 31, 2006;Cash $13,100 Accounts payable $8,750;Accounts receivable 19,780 Common Stock 20,000;Allowance for doubtful accounts (1000) Retained earnings 12,530;Merchandise inventory 9,400 $41,280;$41,280;During January 2007, the following transactions occurred. Mulder uses;the perpetual inventory method.;Jan. 1 Mulder accepted a 4-month, 12% note from Alien Company in payment;of Alien???s $1000 account.;Mulder wrote off as uncollectible the accounts of Ex Corporation ($450);and Files Company ($230).;Mulder purchased $17,200 of inventory on account.;Mulder sold for $25,000 on account inventory that cost $15,000;Mulder sold inventory that cost $600 to Ben Borke for $1000. Borke;charged this amount on his Visa First Bank card. The service fee;charged Mulder by First Bank is 3%.;17 Mulder collected $21,900 from customers on account.;21 Mulder paid $16,300 on accounts payable.;24 Mulder received payment in full ($230) from Files Company on the;account written off on January 3.;27 Mulder Purchased advertising supplies for $1,400 cash.;31 Mulder paid other operating expenses, $4218.;Adjustment data;Interest is recorded for the month on the note from January 1.;Bad debts are expected to be 6% of the January 31,2007, accounts;receivable.;Account of advertising supplies on January 31, 2007, reveals that $560;remains unused.;The income tax rate is 30% (Hint: Prepare the income statement up to;???Income before taxes??? and multiply by 30% to compute the amount.);Instructions;(You may want to set up T accounts to determine ending balancing.);Prepare journal entries for the transactions listed above and adjusting;entries.;Prepare an adjusted trial balance at January 31, 2007.;Prepare an income statement and a retained earnings statement for the;month ending January 31,2007, and a classified balance sheet as of;January 31,2007.

 

Paper#25532 | Written in 18-Jul-2015

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