This problem is worth 15 points. You must use an Excel spreadsheet for your answer. Axion...

   

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This problem is worth 15 points. You must use an “Excel" spreadsheet for your answer. Axion Corporation Balance Sheet December 31, 202x Assets S 32,500 174,175 540,000 14,000 17,000 50,000 Cash Accounts receivable Land, building & equipment Prepaid expenses Patent Inventory Total Assets $ 827,675 Liabilities and Owners' Equity Accounts payable Mortgage payable Taxes payable Unearned revenue $ 54,300 150,000 40,000 11,000 50,000 522,375 Common stock Retained earnings Total Liabilities and Owners' Equity $ 827,675 The books have been closed for the year. Any changes in revenues or expenses will be adjusted to Retained Earnings. Required: Based on the information above, and the information below, prepare IN GOOD FORM: A review of the land, building and equipment account indicated the land cost $140,000. The building cost was $400,000, and the equipment cost $100,000. Depreciation on the building has been calculated on the straight-line method using a 40 year useful life, and has been on the books for eight years. The equipment was purchased two years ago and is being depreciated on the straight-line method with a useful life of 10 years. 3) 4) The patent was purchased on January 2nd of the current year and has a legal life of 20 years. No amortization has been recorded for the current period. This problem is worth 15 points. You must use an “Excel" spreadsheet for your answer. Axion Corporation Balance Sheet December 31, 202x Assets S 32,500 174,175 540,000 14,000 17,000 50,000 Cash Accounts receivable Land, building & equipment Prepaid expenses Patent Inventory Total Assets $ 827,675 Liabilities and Owners' Equity Accounts payable Mortgage payable Taxes payable Unearned revenue $ 54,300 150,000 40,000 11,000 50,000 522,375 Common stock Retained earnings Total Liabilities and Owners' Equity $ 827,675 The books have been closed for the year. Any changes in revenues or expenses will be adjusted to Retained Earnings. Required: Based on the information above, and the information below, prepare IN GOOD FORM: A review of the land, building and equipment account indicated the land cost $140,000. The building cost was $400,000, and the equipment cost $100,000. Depreciation on the building has been calculated on the straight-line method using a 40 year useful life, and has been on the books for eight years. The equipment was purchased two years ago and is being depreciated on the straight-line method with a useful life of 10 years. 3) 4) The patent was purchased on January 2nd of the current year and has a legal life of 20 years. No amortization has been recorded for the current period.

Answer rating: 100% (QA)

Journal entry Debit Credit Amount Amount 31st Dec Bad debts ac Dr 200000 To Provision for bad and do... View the full answer