Trevor Company's balance sheet for December 31, 20XO is as follows: Cash 100 Accounts Receivable 200 Interest Receivable 25 Inventory Notes Receivable (long term) Equipment, at cost Accumulated depreciation, Equipment Equipment, net Total assets 150 500 400 150 250 $1,225 Accounts payable Wages payable 140 20 Unearned sales revenue 40 Paid-in-capital Retained income 600 425 Total liabilities and $1,225 stockholder's equity The following summarized transactions occurred during 20X1: a. Purchased merchandise inventory on credit, $700. b. Delivered merchandise to customers who had paid in advance as of December 31, 20X0. c. Sales of merchandise (all on credit and excluding transaction b) during 20X1 were $3,000. d. The cost of merchandise sold (including that in transaction b) during 20X1 was $900. с. e. Collection from credit customers was $2,500. f. Interest on notes receivable of 12% per annum was collected each August 1. g. Cash payment to suppliers, $800 (see item: a) h. Cash payment for wages during 20X1 was $250. i. New equipment was purchased on December 10 for $300 in cash. Cash dividend of $50 was declared on December 20, 20X1. The payment date of dividends was January 10, 20X2. j.
Trevor Company's balance sheet for December 31, 20XO is as follows: Cash 100 Accounts Receivable 200 Interest Receivable 25 Inventory Notes Receivable (long term) Equipment, at cost Accumulated depreciation, Equipment Equipment, net Total assets 150 500 400 150 250 $1,225 Accounts payable Wages payable 140 20 Unearned sales revenue 40 Paid-in-capital Retained income 600 425 Total liabilities and $1,225 stockholder's equity The following summarized transactions occurred during 20X1: a. Purchased merchandise inventory on credit, $700. b. Delivered merchandise to customers who had paid in advance as of December 31, 20X0. c. Sales of merchandise (all on credit and excluding transaction b) during 20X1 were $3,000. d. The cost of merchandise sold (including that in transaction b) during 20X1 was $900. с. e. Collection from credit customers was $2,500. f. Interest on notes receivable of 12% per annum was collected each August 1. g. Cash payment to suppliers, $800 (see item: a) h. Cash payment for wages during 20X1 was $250. i. New equipment was purchased on December 10 for $300 in cash. Cash dividend of $50 was declared on December 20, 20X1. The payment date of dividends was January 10, 20X2. j.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 50P: The following balance sheets and income statement were taken from the records of Rosie-Lee Company:...
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