llville Company carried the following balances to their respective accounts. Cash-$58000, Merchandise Inventory- $75800, Prepaid Insurance-$4900, 10% Notes Payable-$25200, Equipment-$143000, Accumulated Depreciation: Equipment-$3700, Common Stock-$124000, Paid in capital in excess of par value: Common Stock-$24000, and Retained Earnings-$104800. The following transactions took place in Smallville Company during April of the current year (2020). April 1 - Issued $2500 new shares of common stock for $346000
Smallville Company was organized on January 1, 2020. It is authorized to issue 102000 shares of $120 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts.
Cash-$58000, Merchandise Inventory- $75800, Prepaid Insurance-$4900, 10% Notes Payable-$25200, Equipment-$143000, Accumulated
The following transactions took place in Smallville Company during April of the current year (2020).
April 1 - Issued $2500 new shares of common stock for $346000
April 3 - Purchased merchandise of $7500 on account from Prescott Co., terms FOB destination, 2/10, n/30. The appropriate party paid the freight charge of $300.
April 4 - Sold merchandise for cash, $83600. The cost of the merchandise sold was $48000.
April 5 - Purchased merchandise on account from Stafford Co., $23000, terms FOB shipping point, 2/10, n/30. The appropriate paid the freight charge of $700.
April 6 - Returned $510 of merchandise purchased on April 3 from Prescott Co.
April 13 - Paid Prescott Co. on account for purchase of April 3.
April 15 - Paid Stafford Co. on account for purchase of April 5.
April 17 - Purchased merchandise for cash $1600.
April 20 - Received refund for poor quality merchandise from supplier on cash purchase $180.
REQUIREMENTS: download the excel file given at the link below and answer the follow questions and then upload the completed excel file via link given at the bottom of the page:
(1) Journalize the transactions for the month of April. (Assume that the company follows perpetual inventory system).
(2) Post the April
(3) Prepare a
Additional Information on Smallville Company:
A review of the ledger of Smallville Company at April 30, 2020, produces the following data pertaining to the preparation of monthly
(a) Notes Payable $25200. This balance consists of a note for 6 months at an annual interest rate of 12%, dated January 1, 2020.
(b) There are five workers in Smallville Company who are paid wages weekly. The five workers are paid $870 each for a 5-day work week (Monday to Friday). April 30 is a Tuesday and workers are paid on Fridays.
(c) Annual depreciation is $12200 on equipment.
(d) Physical check reveals inventory actually on hand on April 30, 2020 is $56810.2.
(4) Journalize the adjusting entries at April 30, 2020.
(5) Prepare an adjusted trial balance.
(6) Using the balances from the adjusted trial balance, prepare a multi-step income statement and owner’s equity statement for the one month ended April 30. (Assume that the company falls under 30% tax bracket).
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