Here is the partial work sheet for Eckland Stereo: (image below)Required:1. Prepare a statement of owner's equity (no additional investment)2. Prepare a balance sheet3. Determine the amount of the working capital4. Determine the current ratio (carry to two decimal places). PROBLEM 12-2A Here is the partial work sheet for Eckland Stereo.KEckland StereoWork SheetFor Year Ended December 31, 20-BALANCE SHEETDEBITCREDITACCOUNT NAME14,815.007,500.0030,170.0050,244.002,115.001,640.0016,700.0050,000.00CashNotes ReceivableAccounts ReceivableMerchandise Inventory11Prepaid Property Taxes1210Prepaid InsuranceLandBuilding131415,900.00Accumulated Depreciation, Building1615Computer Equipment6,892.005,674.0017Accumulated Depreciation, Computer EquipmentStore Equipment7,230.00184,424.0019Accumulated Depreciation, Store Equipment4,300.00Delivery Equipment2120Accumulated Depreciation, Delivery EquipmentNotes PayableAccounts Payable24Mortgage PayableM. J. Eckland, CapitalM. J. Eckland, Drawing3,470.005,215.0027,140.002,800.0065,200.0057,314.002223Mortgage Payable (current portion)25262723,000.00281,984.00189,121.0025,485.00214,606.0041Wages Payable42214,606.0043Net Income44214,606.0045Sheet1Sheet2Sheet3Required1. Prepare a statement of owner's equity (no additional investment).2. Prepare a balance sheet.3. Determine the amount of the working capital.4. Determine the current ratio (carry to two decimal places).23456789

Name: Here is the partial work sheet for Eckland Stereo: (image below)Requir
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: Here is the partial work sheet for Eckland Stereo: (image below)Required:1. Prepare a statement of owner's equity (no additional investment)2. Prepare a balance sheet3. Determine the amount of the working capital4. Determine the current ratio (carry

Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Business

Accounting

Eckland Stereo Work Sheet 2. For Year Ended December 31, 20-- 4. BALANCE SHEET CREDIT DEBIT ACCOUNT NAME 14,815.00 7,500.00 30,170.00 50,244.00 2,115.00 1,640.00 16,700.00 50,000.00 Cash Notes Receivable Accounts Receivable Merchandise Inventory 8. 9. 10 Prepaid Property Taxes Prepaid Insurance 11 12 13 Land 14 Building 15,900.00 15 Accumulated Depreciation, Building Computer Equipment 6,892.00 16 5,674.00 Accumulated Depreciation, Computer Equipment 18 17 7,230.00 Store Equipment Accumulated Depreciation, Store Equipment Delivery Equipment Accumulated Depreciation, Delivery Equipment Notes Payable Accounts Payable Mortgage Payable (current portion) Mortgage Payable M. J. Eckland, Capital M. J. Eckland, Drawing 19 4,424.00 20 4,300.00 3,470.00 5,215.00 27,140.00 2,800.00 65,200.00 57,314.00 21 22 23 24 25 26 27 23,000.00 28 1,984.00 189,121.00 25,485.00 214,606.00 41 Wages Payable 42 214,606.00 43 Net Income 44 214,606.00 45 Sheet1 Sheet2 Sheet3 Required 1. Prepare a statement of owner's equity (no additional investment). 2. Prepare a balance sheet. 3. Determine the amount of the working capital. 4. Determine the current ratio (carry to two decimal places).

Eckland Stereo Work Sheet 2. For Year Ended December 31, 20-- 4. BALANCE SHEET CREDIT DEBIT ACCOUNT NAME 14,815.00 7,500.00 30,170.00 50,244.00 2,115.00 1,640.00 16,700.00 50,000.00 Cash Notes Receivable Accounts Receivable Merchandise Inventory 8. 9. 10 Prepaid Property Taxes Prepaid Insurance 11 12 13 Land 14 Building 15,900.00 15 Accumulated Depreciation, Building Computer Equipment 6,892.00 16 5,674.00 Accumulated Depreciation, Computer Equipment 18 17 7,230.00 Store Equipment Accumulated Depreciation, Store Equipment Delivery Equipment Accumulated Depreciation, Delivery Equipment Notes Payable Accounts Payable Mortgage Payable (current portion) Mortgage Payable M. J. Eckland, Capital M. J. Eckland, Drawing 19 4,424.00 20 4,300.00 3,470.00 5,215.00 27,140.00 2,800.00 65,200.00 57,314.00 21 22 23 24 25 26 27 23,000.00 28 1,984.00 189,121.00 25,485.00 214,606.00 41 Wages Payable 42 214,606.00 43 Net Income 44 214,606.00 45 Sheet1 Sheet2 Sheet3 Required 1. Prepare a statement of owner's equity (no additional investment). 2. Prepare a balance sheet. 3. Determine the amount of the working capital. 4. Determine the current ratio (carry to two decimal places).

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter9: Receivables

Section: Chapter Questions

Problem 9.6BPR: Sales and notes receivable transactions The following were selected from among the transactions...

See similar textbooks

Similar questions

Problem 10-2A (Part Level Submission)The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.)Feb. 1 Issued a 9%, 2-month, $30,000 note to Nunez in payment of account.Mar. 31 Accrued interest for 2 months on Nunez note.Apr. 1 Paid face value and interest on Nunez note.July 1 Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note.Sept. 30 Accrued interest for 3 months on Marson note.Oct. 1 Paid face value and interest on Marson note.Dec. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $24,000.Dec. 31 Recognized interest expense for 1 month on Paola Bank note. Prepare the adjusting entry to record the accrual of interest on December 31, 2017.
Problem 10-2A (Part Level Submission)The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.)Feb. 1 Issued a 9%, 2-month, $30,000 note to Nunez in payment of account.Mar. 31 Accrued interest for 2 months on Nunez note.Apr. 1 Paid face value and interest on Nunez note.July 1 Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note.Sept. 30 Accrued interest for 3 months on Marson note.Oct. 1 Paid face value and interest on Marson note.Dec. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $24,000.Dec. 31 Recognized interest expense for 1 month on Paola Bank note. A. Prepare journal entries for the listed transactions and events. B.
Problem 10-2A (Part Level Submission)The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.)Feb. 1 Issued a 9%, 2-month, $30,000 note to Nunez in payment of account.Mar. 31 Accrued interest for 2 months on Nunez note.Apr. 1 Paid face value and interest on Nunez note.July 1 Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note.Sept. 30 Accrued interest for 3 months on Marson note.Oct. 1 Paid face value and interest on Marson note.Dec. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $24,000.Dec. 31 Recognized interest expense for 1 month on Paola Bank note. Show the balance sheet presentation of notes and interest payable at December 31.
Problem 13-02A (Video) The comparative statements of Cullumber Company are presented here: Cullumber CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,891,640 $1,751,600 Cost of goods sold 1,059,640 1,007,100 Gross profit 832,000 744,500 Selling and administrative expenses 501,100 480,100 Income from operations 330,900 264,400 Other expenses and losses Interest expense 23,700 21,700 Income before income taxes 307,200 242,700 Income tax expense 93,700 74,700 Net income $213,500 $168,000 Cullumber CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 118,900 103,900 Inventory 127,700 117,200 Total current assets 380,700 335,300 Plant assets (net)…
Sales and notes receivable transactions The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems. Jan. 3. Loaned 18,000 cash to Trina Gelhaus, receiving a 90-day, 8 % note. Feb. 10. Sold merchandise on account to Bradford Co., 24, 000. The cost of the merchandise sold was 14,400. 13. Sold merchandise on account to Dry Creek Co., 60,000. The cost of merchandise sold was 54,000. Mar. 12. Accepted a 60-day, 7% note for 24,000 from Bradford Co. on account. 14. Accepted a 60-day, 9% note for 60,000 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11. Received from Bradford Co. the amount due on the note of March 12. 13. Dry Creek Co. dishonored its note dated March 14. July 12. Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. Aug. 1. Received from Trina Gelhaus the amount due on her note of April 3. Oct. 5.Sold merchandise on account to Halloran Co. 13,500. The cost of the merchandise sold was 8, 100. 15 Received from Halloran Co. the amount of the invoice of October 5, less 2 % discount. Instructions Journalize the entries to record the transactions.
Sales and notes receivable transactions The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company: Jan. 21. Sold merchandise on account to Black Tie Co., 28,000. The cost of merchandise sold was 16,800. Mar. 18. Accepted a 60-day, 6% note for 28,000 from Black Tie Co. on account. May 17. Received from Black Tie Co. the amount due on the note of March 18. June 15. Sold merchandise on account to Pioneer Co. for 17,700. The cost of merchandise sold was 10,600. 21. Loaned 18,000 cash to JR Stutts, receiving a 30-day, 8% note. 25. Received from Pioneer Co. the amount due on the invoice of June 15, less 1% discount. July 21. Received the interest due from JR Stutts and a new 60-day, 9% note as a renewal of the loan of June 21. (Record both the debit and the credit to the notes receivable account.) Sept.19. Received from JR Stutts the amount due on her note of July 21. 22. Sold merchandise on account to Wycoff Co., 20,000. The cost of merchandise sold was 12,000. Oct. 14. Accepted a 30-day, 6% note for 20,000 from Wycoff Co. on account. Nov. 13. Wycoff Co. dishonored the note dated October 14. Dec. 28. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity value of the note. Instructions Journalize the entries to record the transactions.
Sales and notes receivable transactions The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems. Jan. 3. Loaned 18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10. Sold merchandise on account to Bradford Co., 24,000. The cost of the merchandise sold was 14,400. 13. Sold merchandise on account to Dry Creek Co., 60,000. The cost of merchandise sold was 54,000. Mar. 12. Accepted a 60-day, 7% note for 24,000 from Bradford Co. on account. 14. Accepted a 60-day, 9% note for 60,000 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11. Received from Bradford Co. the amount due on the note of March 12. 13. Dry Creek Co. dishonored its note dated March 14. July 12. Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. Aug. 1. Received from Trina Gelhaus the amount due on her note of April 3. Oct. 5. Sold merchandise on account to Halloran Co., 13,500. The cost of the merchandise sold was 8,100. 15. Received from Halloran Co. the amount of the invoice of October 5. Instructions Journalize the entries to record the transactions.
Sales and notes receivable transactions The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company: Jan. 21. Sold merchandise on account to Black Tie Co., 28,000. The cost of merchandise sold was 16,800. Mar. 18. Accepted a 60-day, 6% note for 28,000 from Black Tie Co. on account. May 17. Received from Black Tie Co. the amount due on the note of March 18. June 15. Sold merchandise on account to Pioneer Co. for 17,700. The cost of merchandise sold was 10,600. 21. Loaned 18,000 cash to JR Stutts, receiving a 30-day, 8% note. 25. Received from Pioneer Co. the amount due on the invoice of June 15. July 21. Received the interest due from JR Stutts and a new 60-day, 9% note as a renewal of the loan of June 21. (Record both the debit and the credit to the notes receivable account.) Sept. 19. Received from JR Stutts the amount due on her note of July 21. 22. Sold merchandise on account to Wycoff Co., 20,000. The cost of merchandise sold was 12,000. Oct. 14. Accepted a 30-day, 6% note for 20,000 from Wycoff Co. on account. Nov. 13. Wycoff Co. dishonored the note dated October 14. Dec. 28. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity value of the note. Instructions Journalize the entries to record the transactions.