Required: 1 . ?Prepare the journal entries for the transactions including any adjusting journal entries for the
Question:
Required:
?Prepare the journal entries for the transactions including any adjusting journal entries for the month of May ?
?Prepare an adjusted trial balance as at May ?
Prepare the multistep Income Statement for the month of May ?Ignore income taxes.
?prepare the classified balance sheet
?Assume Hulk Corporation overstated its ending inventory by $ ?How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Enter the amount of the overunderstatement if any ?in the designated spots.
?Assume that Hulk Corporation used the LCNRV to report inventory on the balance sheet. The NRV of $ ?is less than the FIFO cost. Prepare the journal entry.
Hulk Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2024, the following were the account balances of Hulk Corporation: Debits Credits Cash 32400 Allowance for Doubtful Accounts 1200 Accounts Receivable 12000 Accumulated Depreciation (Van) 24000 Inventory (340 units) Van 68000 Accumulated Depreciation (Furniture & Fixtures) 1600 25600 Accounts Payable 6400 Furniture & Fixtures 7200 Common Shares Retained Earnings 8000 104000 Total Debits 145200 Total Credits 145200 During May 2024, the following transactions took place: May 1: Bought 160 desktop printers for $160 each on account. May 1: Bought a van, paying $8400 cash as a down payment and signed a 7 month $28000, 6% note payable for the balance. The company paid $480 to have its company logo printed on the side of the van. The residual value is $6400. The old van was sold for $6400; it cost $25600 and acculumated depreciation up to the date of disposal was $24000. May 10: Sold 80 printers to Star Lord Inc. on account. May 12: Marvel Corporation agreed to sign a 60-day note receivable to replace a $2800 accounts receivable due that day. The interest rate on the note is 8%. May 20: Sold 6 printers to Thor Inc. using a VISA card to pay for the transaction. A 3.6% service fee is charged by VISA. May 22: Sold 76 printers to Tony Stark Public School on account. May 24: Returned for credit 5 damaged printers from Star Lord Inc., costing $168 each. May 28: Received payment in full from Star Lord Inc. for the balance owing. May 28: Wrote off as uncollectable $3200 of accounts receivable. May 29: Paid accounts payable, $7200. May 30: Recovered an accounts receivable that was written off in April, $480. May 31: Paid operating expenses totalling $36400. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 8 years. The furniture & fixtures are depreciated using the straight-line method over 4 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days Accounts Receivable Estinated Percentage Uncollectable 31-60 days 61-90 days 90+ days $28000 $9600 $4000 $840 1.6% 4% 8% 16% Hulk Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2024, the following were the account balances of Hulk Corporation: Debits Credits Cash 32400 Allowance for Doubtful Accounts 1200 Accounts Receivable 12000 Accumulated Depreciation (Van) 24000 Inventory (340 units) Van 68000 Accumulated Depreciation (Furniture & Fixtures) 1600 25600 Accounts Payable 6400 Furniture & Fixtures 7200 Common Shares Retained Earnings 8000 104000 Total Debits 145200 Total Credits 145200 During May 2024, the following transactions took place: May 1: Bought 160 desktop printers for $160 each on account. May 1: Bought a van, paying $8400 cash as a down payment and signed a 7 month $28000, 6% note payable for the balance. The company paid $480 to have its company logo printed on the side of the van. The residual value is $6400. The old van was sold for $6400; it cost $25600 and acculumated depreciation up to the date of disposal was $24000. May 10: Sold 80 printers to Star Lord Inc. on account. May 12: Marvel Corporation agreed to sign a 60-day note receivable to replace a $2800 accounts receivable due that day. The interest rate on the note is 8%. May 20: Sold 6 printers to Thor Inc. using a VISA card to pay for the transaction. A 3.6% service fee is charged by VISA. May 22: Sold 76 printers to Tony Stark Public School on account. May 24: Returned for credit 5 damaged printers from Star Lord Inc., costing $168 each. May 28: Received payment in full from Star Lord Inc. for the balance owing. May 28: Wrote off as uncollectable $3200 of accounts receivable. May 29: Paid accounts payable, $7200. May 30: Recovered an accounts receivable that was written off in April, $480. May 31: Paid operating expenses totalling $36400. May 31: Recorded depreciation on the van and the furniture & fixtures. The company uses straight-line depreciation for the van. The van is estimated to be used for 8 years. The furniture & fixtures are depreciated using the straight-line method over 4 years. There is no residual value on the furniture and fixtures. May 31: Recorded interest on the note payable. May 31: Recorded interest on the notes receivable. May 31: The company records the bad debt expense based on the aging of accounts receivables, which follows: Number of Days Outstanding 0-30 days Accounts Receivable Estinated Percentage Uncollectable 31-60 days 61-90 days 90+ days $28000 $9600 $4000 $840 1.6% 4% 8% 16%
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