Captain America Corporation is a small private corporation that sells desktop printers to local businesses and...

 

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Captain America Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2021, the following were the account balances of Captain America Corporation: Cash Accounts Receivable Inventory (300 units) Van Furniture & Fixtures Total Debits Debits 30300 12000 57000 27000 9000 135300 During May 2021, the following transactions took place: May 1: Bought 96 desktop printers for $120 each on account. Allowance for Doubtful Accounts Accumulated Depreciation (Van) Accumulated Depreciation (Furniture & Fixtures) Accounts Payable Common Shares Retained Earnings Total Credits Credits 1800 24000 3000 7500 12000 87000 135300 May 1: Bought a van, paying $6300 cash as a down payment and signed a 7 month $21000, 6% note payable for the balance. The company paid $420 to have its company logo painted on the side of the van. The residual value is $3300. The old van was sold for $4800; it cost $27000 and acculumated depreciation up to the date of disposal was $24000. May 10: Sold 96 printers to Falcon Inc. on account. May 12: Advanced Idea Mechanics agre to sign a 60-day note receivable to replace a $900 accounts receivable due that day. The interest rate the note is 3.9%. May 20: Sold 7 printers to Iron Man Inc. using a VISA card to pay for the transaction. A 2.1% service fee is charged by VISA. May 22: Sold 54 printers to Sam Wilson Public School on account. May 24: Returned for credit 4 damaged printers from Falcon Inc., costing $102 each. May 28: Received payment in full from Falcon Inc. for the balance owing. May 28: Wrote off as uncollectable $1500 of accounts receivable. May 29: Paid accounts payable, $6600. May 30: Recovered an accounts receivable that was written off in April, $420. May 31: Paid operating expenses totalling $27300. 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 31-60 days 61-90 days 90+ days Accounts Receivable $16200 Estinated Percentage Uncollectable 1.2% $7200 3% $1800 6% $540 12% Required: 1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2021. Place your answer under "Requirement 1" in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. May 1: May 10: May 12: May 20: May 22: May 24: Requirement 1: May 28: May 29: May 30: May 31: Captain America Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2021, the following were the account balances of Captain America Corporation: Cash Accounts Receivable Inventory (300 units) Van Furniture & Fixtures Total Debits Debits 30300 12000 57000 27000 9000 135300 During May 2021, the following transactions took place: May 1: Bought 96 desktop printers for $120 each on account. Allowance for Doubtful Accounts Accumulated Depreciation (Van) Accumulated Depreciation (Furniture & Fixtures) Accounts Payable Common Shares Retained Earnings Total Credits Credits 1800 24000 3000 7500 12000 87000 135300 May 1: Bought a van, paying $6300 cash as a down payment and signed a 7 month $21000, 6% note payable for the balance. The company paid $420 to have its company logo painted on the side of the van. The residual value is $3300. The old van was sold for $4800; it cost $27000 and acculumated depreciation up to the date of disposal was $24000. May 10: Sold 96 printers to Falcon Inc. on account. May 12: Advanced Idea Mechanics agre to sign a 60-day note receivable to replace a $900 accounts receivable due that day. The interest rate the note is 3.9%. May 20: Sold 7 printers to Iron Man Inc. using a VISA card to pay for the transaction. A 2.1% service fee is charged by VISA. May 22: Sold 54 printers to Sam Wilson Public School on account. May 24: Returned for credit 4 damaged printers from Falcon Inc., costing $102 each. May 28: Received payment in full from Falcon Inc. for the balance owing. May 28: Wrote off as uncollectable $1500 of accounts receivable. May 29: Paid accounts payable, $6600. May 30: Recovered an accounts receivable that was written off in April, $420. May 31: Paid operating expenses totalling $27300. 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 31-60 days 61-90 days 90+ days Accounts Receivable $16200 Estinated Percentage Uncollectable 1.2% $7200 3% $1800 6% $540 12% Required: 1) Prepare the journal entries for the transactions including any adjusting journal entries for the month of May 31, 2021. Place your answer under "Requirement 1" in the "Answer" tab. A reminder to round all final numbers to the nearest dollar. Do not round during calculations. Ensure your spelling is accurate. Do not use abbreviations for your accounts. Spell them out in their entirety. A reminder to only use the accounts given in the question. May 1: May 10: May 12: May 20: May 22: May 24: Requirement 1: May 28: May 29: May 30: May 31:

Answer rating: 100% (QA)

SOLUTION Requirement 1 Journal Entries May 1 Inventory 300 units 57000 Accounts Payable 57000 To record purchase of 96 desktop printers on account Van ... View the full answer