Crane had the following account balances at December 31, 2023: Cash $24,000 Accumulated Depreciation, Equipment 25,000 Accounts
Question:
Crane had the following account balances at December 31, 2023:
Cash |
| $24,000 |
| Accumulated Depreciation, Equipment |
| 25,000 |
Accounts Receivable |
| 25,000 |
| Wages Payable |
| 6,000 |
Supplies |
| 50,000 |
| Accounts Payable |
| 50,000 |
Prepaid Insurance |
| 3,000 |
| Common Shares |
| 75,000 |
Inventory |
| 46,500 |
| Retained Earnings |
| 67,500 |
Equipment |
| 75,000 |
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During 2024, the following transactions occurred:
1. |
| Sales of paninis for cash were $702,000, and sales of paninis on account were $60,000. |
2. |
| Purchases of ingredients were $189,000, all on account. |
3. |
| Collections from customers for sales on account totalled $19,400. |
4. |
| The company paid $48,600 for utilities expenses. |
5. |
| Ingredients with a cost of $200,000 were used in paninis that were sold. |
6. |
| Payments for ingredients purchased on account totalled $238,000. |
7. |
| The company paid $102,600 for wages. |
8. |
| A dividend of $37,800 was declared and paid at the end of the year. |
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Information for adjusting entries: |
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9. |
| The balance in the Supplies account at the end of 2024 was $1,200. |
10. |
| Wages owed to employees at the end of 2024 were $3,780. |
11. |
| At the end of 2024, the account balance in Prepaid Insurance was $1,500. |
12. |
| The equipment had an estimated useful life of eight years with a residual value of $3,000. |
I have to use the following table to a classified statement of financial position for 2024. (List Current Assets in order of liquidity.)
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley