Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hulk Corporation is a small private corporation thatsells desktop printers to local businesses and schools. On May 1 , 2 0 2 4 , the

Hulk Corporation is a small private corporation thatsells desktop printers to local businesses and schools. On May 1,2024, the following were the account balances ofHulk Corporation:CashAccounts ReceivableInventory (340 units)VanFurniture & FixturesDebits324001200068000256007200Total Debits145200Allowance for Doubtful Accounts Accumulated Depreciation (Van)Accumulated Depreciation (Furniture & Fixtures)Accounts PayableCommon SharesRelained EarningsTotal CreditsCredits120024000160064008000104000145200During May 2024, the following transactions took place:May 1: Bought 160 desktop printers for $120 each on account.May 1: Boughta van, paying $6400 cash as a down paymentand signed a 7 month $12000,6% note payable for the balance. The company paid $480 to have its company logo printed on the side ofthe van. The residual value is $6400. The old van was sold for $8000; itcost$25600 and acculumated depreciation up to the date ofdis posal was $24000.May 10: Sold 128 printers to Slar Lord Inc.on account.May 12: Marvel Corporation agreed to sign a 60-day note receivable to replace a $1840 accounts receivable due thatday. The interestrate on the note is6.4%.May 20: Sold 2 printers to Thor Inc.using a VISAcard to pay for the transaction. A2.8% service fee is charged by VISA.May 22: Sold 76 printers to Tony Stark Public Schoolon account.May 24: Returned for credit 3 damaged printers from Star Lord Inc. cosfing $136 each.May 28: Received paymentin full from Star Lord Inc. for the balance owing.May 28: Wrote offas uncollectable $3000 ofaccounts receivable.May 29: Paid accounts payable, $7200.May 30: Recovered an accounts receivable thatwas written offin April, $400.May 31: Paid operating expenses totalling $36400.May 31: Raoder ears intone hares a pre us The an emeral in ears it or est lan on e and andfixtures.May 31: Recorded intereston the note payable.May 31: Recorded intereston the notes receivable.May 31: The company records the bad debtexpense based on the aging ofaccounts receivables, which follows:Number of Days Outstanding0-30 days 31-60 days 61-90 days90+ daysAccounts Receivable$28000$7200$2400$840Es tinated Percentage Uncollectable1.6%4%8%16%Other Information:1) The selling price for each of the printers is $440.2) Hulk Corporation uses the FIFO method under the perpetual inventory system to accountfor inventory.3) In the past, Hulk Corporation has used the following accounts on their financial statements: Bad Debt Expense, Costof Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, InterestExpense, InterestPayable, InterestReceivable, InterestRevenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Notall accounts have been used each period.Required:1) Prepare the journal entries for the transactions including any adjusting journal entries for the month ofMay 31,2024. Place your answer under"Requirement 1" in the "Answer" lab. Areminder to round all final numbers to the nearestdollar. Do notround during calculations. Ensure your spelling is accurate. Do notuse abbreviations for your accounts. Spell themoutin their entirety. Areminder to only use the accounts given in the question.Explanations are notrequired.2) Prepare an adjusted trial balance as atMay 31,2024. Place your answer under "Requirement2" in the "Answer" lab. Place your accountfiles in column H, debits in column land credits in column J. Ensure your spelling is accurate. Do notuse abbreviations for your accounts. Spell them outin their entirety. Areminder to only use the accounts given in the question.given in the question.4) Prepare a classified Balance SheetatatMay 31,2024. Place your answer under "Requirement4" in the "Answer" lab. Ensure your spelling is accurate. Do notuse abbreviations for your accounts. Spell them outin their entirety. A reminder lo only use the accounts given in the question.5) Assume Hulk Corporation overstated its ending inventory by $1520. How does this affectcostofgoods sold, gross profit, and netincome in the year it was discovered? If the error is undetected, whatis the impacton costofgoods sold, gross profit, and netincome for the following year. Place your answer under "Requirement5" in the "Answer" lab using the drop down menus. Enter the amountofthe over/unders tatement (ifany) in the designated spots.6) Assume thatHulk Corporation used the LCNRVio reportinventory on the balance sheet. The NRVof$480 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement" in the "Answer" lab. Ensure your spelling is accurate. Do notuse abbreviations for your accounts. Spell them outin their entirety. Areminder lo only use the accounts given in the question. Explanations are notrequired.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And Cost Accounting

Authors: Colin Drury

6th Edition

1844807037, 978-1844807031

More Books

Students also viewed these Accounting questions