Badger World Wide, Incorporated, manufactures military, work, sport, and casual footwear and leather accessories under a...

 

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Badger World Wide, Incorporated, manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Moth, Lovlies, Walkers, and Bill Ladde. The following transactions occurred during a recent month. a. Made cash sales of $51,400 (example). b. Purchased $3,250 of additional supplies on account. c Borrowed $59,000 on long-term notes. d. Purchased $23,600 in additional equipment, paying in cash. e. Incurred $39,150 in selling expenses, paying two-thirds in cash and owing the rest on account. Paid $4,750 in rent on the last day of this month, and also paid $4,750 for month's rent. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's preliminary net income. Badger World Wide, Incorporated, manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Moth, Lovlies, Walkers, and Bill Ladde. The following transactions occurred during a recent month. a. Made cash sales of $51,400 (example). b. Purchased $3,250 of additional supplies on account. c Borrowed $59,000 on long-term notes. d. Purchased $23,600 in additional equipment, paying in cash. e. Incurred $39,150 in selling expenses, paying two-thirds in cash and owing the rest on account. Paid $4,750 in rent on the last day of this month, and also paid $4,750 for month's rent. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's preliminary net income.

Answer rating: 100% (QA)

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