Heckler Machinery, reported the following account balances on January 1. Accounts Receivable Accumulated Depreciation Additional Paid-in...

Transcribed Image Text:

Heckler Machinery, reported the following account balances on January 1. Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Debit Credit $ 5,000 $ 30,000 116,000 2,000 0 Buildings 273,000 Cash 16,500 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 16,500 Retained Earnings 120,000 Treasury Stock 0 $294,500 $ 294,500 TOTALS The company entered into the following transactions during the year. January 15 Issued 18,000 shares of $1 par common stock for $76,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,260 shares of $1 par common stock into treasury for $35,860 cash. March 15 Reissued 2,260 shares of treasury stock for $26,860 cash. August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,140 bonds, at a quoted bond price of 101. October 3 Wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded $256,000 of service revenue, all of which was collected in cash. December 30 Paid $226,000 cash for this year's wages through December 31. (Ignore payroll taxes and payroll deductions.) December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) Heckler Machinery, reported the following account balances on January 1. Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Debit Credit $ 5,000 $ 30,000 116,000 2,000 0 Buildings 273,000 Cash 16,500 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 16,500 Retained Earnings 120,000 Treasury Stock 0 $294,500 $ 294,500 TOTALS The company entered into the following transactions during the year. January 15 Issued 18,000 shares of $1 par common stock for $76,000 cash. January 31 Collected $3,000 from customers on account. February 15 Reacquired 3,260 shares of $1 par common stock into treasury for $35,860 cash. March 15 Reissued 2,260 shares of treasury stock for $26,860 cash. August 15 Reissued 600 shares of treasury stock for $4,600 cash. September 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. October 1 Issued 100, 10-year, $1,140 bonds, at a quoted bond price of 101. October 3 Wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded $256,000 of service revenue, all of which was collected in cash. December 30 Paid $226,000 cash for this year's wages through December 31. (Ignore payroll taxes and payroll deductions.) December 31 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)