House Parties Unlimited makes and sells karaoke machines. At the beginning of December 2019, they had the following trial balance: Trial Balance - 12/01/2019 Dr. Cr. Cash 692,525 Accounts Receivable 30,200 Supplies 24,600 Inventory 402,071 Prepaid Advertising 2,000 Building 690,000 Accumulated Depreciation - Building 280,000 Equipment 795,000 Accumulated Depreciation - Equipment 580,000 Land 304,975 Accounts Payable 17,600 Common Stock ($100 par, 5,000 shares outstanding) 500,000 Additional Paid in Capital - Common Stock 500,000 Retained Earnings (12/31/18) 1,063,771 $ 2,941,371 $ 2,941,371 Using the following information, complete steps 1-5 in this workbook. During December 2019 the following transactions occurred related to Liability and Equity accounts: 1 On 12/1/19 HPU issued an additional 1,000 shares of common stock ($100 par) for $115 per share. 2 On 12/3/19 HPU issued $100,000 par, 5 year, 5% bonds for $98,450. 3 On 12/5/19 HPU repurchased 1,600 shares of common stock for $120 per share. 4 On 12/15/19 HPU sold 500 shares of Treasury stock for $130 per share 5 On 12/17/19 HPU issued $200,000 par, 5 year, 8% bonds for $215,125 6 On 12/20/19 HPU sold another 500 shares of Treasury stock for $118 per share 7 On 12/25/19 HPU Declared dividends of $.50 per share HINT: to calculate the amount you need shares outstanding. You started the year with 5,000 shares, issued some more, but then repurchased some and then sold them back! 8 On 12/31/19 HPU paid the Dividends declared on 12/25. 9 On 12/31/19 HPU paid the interest and principal payment (one month!) on the bonds issued on 12/3 and 12/17. Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger %24 Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger Step 4: Create the 2019 Balance Sheet and Income Statement Step 5: Create the Statement of Cash Flows using the Indirect Method. Hint: I've given you the 2018 Balance Sheet and "additional information" to solve the cash flows! Remember the steps!
House Parties Unlimited makes and sells karaoke machines. At the beginning of December 2019, they had the following trial balance: Trial Balance - 12/01/2019 Dr. Cr. Cash 692,525 Accounts Receivable 30,200 Supplies 24,600 Inventory 402,071 Prepaid Advertising 2,000 Building 690,000 Accumulated Depreciation - Building 280,000 Equipment 795,000 Accumulated Depreciation - Equipment 580,000 Land 304,975 Accounts Payable 17,600 Common Stock ($100 par, 5,000 shares outstanding) 500,000 Additional Paid in Capital - Common Stock 500,000 Retained Earnings (12/31/18) 1,063,771 $ 2,941,371 $ 2,941,371 Using the following information, complete steps 1-5 in this workbook. During December 2019 the following transactions occurred related to Liability and Equity accounts: 1 On 12/1/19 HPU issued an additional 1,000 shares of common stock ($100 par) for $115 per share. 2 On 12/3/19 HPU issued $100,000 par, 5 year, 5% bonds for $98,450. 3 On 12/5/19 HPU repurchased 1,600 shares of common stock for $120 per share. 4 On 12/15/19 HPU sold 500 shares of Treasury stock for $130 per share 5 On 12/17/19 HPU issued $200,000 par, 5 year, 8% bonds for $215,125 6 On 12/20/19 HPU sold another 500 shares of Treasury stock for $118 per share 7 On 12/25/19 HPU Declared dividends of $.50 per share HINT: to calculate the amount you need shares outstanding. You started the year with 5,000 shares, issued some more, but then repurchased some and then sold them back! 8 On 12/31/19 HPU paid the Dividends declared on 12/25. 9 On 12/31/19 HPU paid the interest and principal payment (one month!) on the bonds issued on 12/3 and 12/17. Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger %24 Step 1: Write out the Journal entries for #s 1-6. Check figure on Entries: Total debits & credits = $754,301 Step 2: Create the amortization tables for the first 3 years' payments using the straight-line method for the Bonds Payable. Assume annual payments on 12/31. Step 3: Post the entries to the General Ledger Step 4: Create the 2019 Balance Sheet and Income Statement Step 5: Create the Statement of Cash Flows using the Indirect Method. Hint: I've given you the 2018 Balance Sheet and "additional information" to solve the cash flows! Remember the steps!
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 11P: Worksheet Devlin Company has prepared the following partially completed worksheet for the year ended...
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