You are hired as a new staff accountant for Chalky Co., a reputable chalkboard company, that...

 

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You are hired as a new staff accountant for Chalky Co., a reputable chalkboard company, that specializes in selling and installing chalkboards. Your task is to prepare the financial statements for December 31, 2018 1. An audit of their supply inventory showed that $5,000 were used. 2. Previously Chalky Co. had purchased office furniture. The office furniture was purchased for $32,000. Chalky Co. expects the furniture to last 10 years and value $0 at the end of its useful life. 1 year of depreciation needs to be recorded 3. An insurance policy was purchased for $8,000. 6 months of it was used 4. Star Company paid for 50 chalkboards to be installed at $50 each last month. The chalkboards were installed in December. 5. Chalky Co. provided installation service to Peeps and Company for $8,000 on account. 6. Happy Cleaners provided cleaning services to Chalky Co. during December. An invoice was received for the amount of $1,200 due in 30 days. 7. Chalky Co. conducted a physical count of their inventory. The value of current inventory was $9,000.00 8. Based on previous experience, Chalky Co. estimates that 1% of its accounts receivable balance will go uncollected. 9. Chalky Co. aquired BD Company in 2017 for $175,000. At the time of acquisition, BD Company had net assets of $115,000. The current value of BD Company is $130,000 (in 2018). 10. Chalky Co. offers warranty on the services it provides. Based on the companies past experience they estimate warranty expense to be $4,500. 11. Chalky Co. is wanting to expand its operations and needs additional funding. As a result, they decide to sell an additional 15,000 shares at a market price of $20. The par value of the stock is $1 12. Chalky Co. purchased 1,000 of its own shares at the market price of $25.00 You are hired as a new staff accountant for Chalky Co., a reputable chalkboard company, that specializes in selling and installing chalkboards. Your task is to prepare the financial statements for December 31, 2018 1. An audit of their supply inventory showed that $5,000 were used. 2. Previously Chalky Co. had purchased office furniture. The office furniture was purchased for $32,000. Chalky Co. expects the furniture to last 10 years and value $0 at the end of its useful life. 1 year of depreciation needs to be recorded 3. An insurance policy was purchased for $8,000. 6 months of it was used 4. Star Company paid for 50 chalkboards to be installed at $50 each last month. The chalkboards were installed in December. 5. Chalky Co. provided installation service to Peeps and Company for $8,000 on account. 6. Happy Cleaners provided cleaning services to Chalky Co. during December. An invoice was received for the amount of $1,200 due in 30 days. 7. Chalky Co. conducted a physical count of their inventory. The value of current inventory was $9,000.00 8. Based on previous experience, Chalky Co. estimates that 1% of its accounts receivable balance will go uncollected. 9. Chalky Co. aquired BD Company in 2017 for $175,000. At the time of acquisition, BD Company had net assets of $115,000. The current value of BD Company is $130,000 (in 2018). 10. Chalky Co. offers warranty on the services it provides. Based on the companies past experience they estimate warranty expense to be $4,500. 11. Chalky Co. is wanting to expand its operations and needs additional funding. As a result, they decide to sell an additional 15,000 shares at a market price of $20. The par value of the stock is $1 12. Chalky Co. purchased 1,000 of its own shares at the market price of $25.00

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Answer The financial statements for December 31 2018 shou... View the full answer