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Saint MBA560 week 3 homework




Question;5-32 and 6-24 homeworkProblem 5-32The following trial balance was prepared for Lakeview Sales and Service on December 31, 2006 after the closing entries were posted.Lakeview had the following transactions in 2007:1. Purchased merchandise on account for $270,000.2. Sold merchandise that cost $215,000 on account for $350,000.3. Performed $80,000 of services for cash.4. Sold merchandise for $76,000 to credit card customers. The merchandise cost $47,500. The credit card company charges a five percent fee.5. Collected $360,000 cash from accounts receivable.6. Paid $274,000 cash on account payable.7. Paid $126,000 cash for selling and administrative expenses.8. Collected cash for the full amount due from the credit card company (see item 4)9. Loaned $60,000 to R. Shell. The note had an 8 percent interest rate and a one-year term to maturity.10. Wrote off $650 of accounts as uncollectible.11. Made the following adjusting entries:(a) Recorded three months? interest on the note at December 31, 2007 (see item 9).(b) Estimated uncollectible accounts expense to be.5 percent of sales on account.Required:Prepare General journal entries for those transactions, post the entries to T-accounts, and prepare an income statement, a statement of stockholders? equity, a balance sheet, a statement of cash flows for 2007.Problem 6- 24 Purchase and use of tangible asset: three accounting cycles, double- declining- balance depreciation The following transactions pertain to Optimal Solutions Inc. Assume the transactions for the purchase of the computer and any capital improvements occur on January 1 each year.


Paper#40172 | Written in 18-Jul-2015

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