ABC Company manufactures and sells various types of cookies to grocery chains as private label brands....

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ABC Company manufactures and sells various types of cookies to grocery chains as private label brands. The company reported the following balance sheet at the end of 2018: Cash Accounts Receivable Inventories: Raw materials Work in process Finished goods Prepaid Insurance Equipment Less acc depreciation Total Assets 2. 3. 4. 5. 6. 7. 8. Assets $5,350 a. 850 9,550 b. C. d. $5,000 2,000 11,000 3,500 15,750 600 Common stock Retained earnings Total liabilities and equity The following items summarize the business activities of the company during 2019: 1. Borrowed $10,000 on March 1, 2019, signing a 5 year, 6% note payable. Made $4,500 of cash sales to customers. 7,500 Liabilities $30,850 Accounts payable Other liabilities Total current liabilities Equity $3,000 9,550 12,550 10,600 7,700 $30,850 Received a $150 invoice for an advertisement in the Cookie Times February 2020 issue. Made $5,500 of sales on account. 9. Purchased equipment for $5,500 cash. 10. Paid trade vendors $2,500 of the balance due. 11. Paid $3,000 on direct manufacturing-related overhead (e.g. utilities, wages, and other operating costs of Kasvataan's manufacturing plant). An additional $1,750 was spent on corporate salaries and other corporate expenses. 12. Paid $2,300 of other current liabilities. Purchased on account flour for use in manufacturing the company's signature cookies, $6,500. Received $6,000 from customers on account. Paid $800 for Directors and Officers liabiltiy insurance coverage for 2020. Paid a cash dividend of $1,000 to shareholders. Information for year-end adjusting entries is as follows: A physical count of inventory at December 31, 2019 indicated a remaining balance of $5,000 in raw materials, $3,900 in work in process, and $12,550 in finished goods. Depreciation on equipment, $600. Insurance coverage purchased in 20018 expired in 2019. Interest on the note is payable annually on March 1. Income tax expense, $400, payable in June 2020. e. Required: 1. Analyze and record the transactions to the general ledger and then post transaction to T-accounts. 2. Prepare the 2019 Income Statement and Balance Sheet. General Journal Jounral Entries Transaction Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Date DR (Debit) Account CR (Credit) Amount DR (Debit) CR (Credit) ABC Company manufactures and sells various types of cookies to grocery chains as private label brands. The company reported the following balance sheet at the end of 2018: Cash Accounts Receivable Inventories: Raw materials Work in process Finished goods Prepaid Insurance Equipment Less acc depreciation Total Assets 2. 3. 4. 5. 6. 7. 8. Assets $5,350 a. 850 9,550 b. C. d. $5,000 2,000 11,000 3,500 15,750 600 Common stock Retained earnings Total liabilities and equity The following items summarize the business activities of the company during 2019: 1. Borrowed $10,000 on March 1, 2019, signing a 5 year, 6% note payable. Made $4,500 of cash sales to customers. 7,500 Liabilities $30,850 Accounts payable Other liabilities Total current liabilities Equity $3,000 9,550 12,550 10,600 7,700 $30,850 Received a $150 invoice for an advertisement in the Cookie Times February 2020 issue. Made $5,500 of sales on account. 9. Purchased equipment for $5,500 cash. 10. Paid trade vendors $2,500 of the balance due. 11. Paid $3,000 on direct manufacturing-related overhead (e.g. utilities, wages, and other operating costs of Kasvataan's manufacturing plant). An additional $1,750 was spent on corporate salaries and other corporate expenses. 12. Paid $2,300 of other current liabilities. Purchased on account flour for use in manufacturing the company's signature cookies, $6,500. Received $6,000 from customers on account. Paid $800 for Directors and Officers liabiltiy insurance coverage for 2020. Paid a cash dividend of $1,000 to shareholders. Information for year-end adjusting entries is as follows: A physical count of inventory at December 31, 2019 indicated a remaining balance of $5,000 in raw materials, $3,900 in work in process, and $12,550 in finished goods. Depreciation on equipment, $600. Insurance coverage purchased in 20018 expired in 2019. Interest on the note is payable annually on March 1. Income tax expense, $400, payable in June 2020. e. Required: 1. Analyze and record the transactions to the general ledger and then post transaction to T-accounts. 2. Prepare the 2019 Income Statement and Balance Sheet. General Journal Jounral Entries Transaction Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Date DR (Debit) Account CR (Credit) Amount DR (Debit) CR (Credit)

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General Journal Jounral Entries Transaction Account Amount Number Date DR CR DR CR 1 1Mar19 Cash 10000 1 Note Payable 10000 2 Cash 4500 2 Sales revenue 4500 3 No journal entry not due till 2020 3 No j... View the full answer