Iron Man Corporation is a small private corporation that sells desktop printers to local businesses and...

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Iron Man Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2022, the following were the account balances of Iron Man Corporation: Debits Credits Cash 75750 Allowance for Doubtful Accounts 4500 Accounts Receivable 30000 Accumulated Depreciation (Van) 60000 Inventory (750 units) Accumulated Depreciation (Furniture & Fixtures Accounts Payable 142500 7500 Van 67500 18750 Furniture & Fixtures 22500 Common Shares 30000 Retained Earnings 217500 Total Debits 338250 Total Credits 338250 During May 2022, the following transactions took place: May 1: Bought 300 desktop printers for $225 each on account. May 1: Bought a van, paying S15000 cash as a down payment and signed a 7 month $22500, 6% note payable for the balance. The company paid $1200 to have its company logo painted on the side of the van. The residual value is $11250. The old van was sold for $15000; it cost $67500 and acculumated depreciation up to the date of disposal was $60000. May 10: Sold 180 printers to Okoye Inc. on account. May 12: Rand Enterprises agreed to sign a 60-day note receivable to replace a $1500 accounts receivable due that day. The interest rate on the note is 15% May 20: Sold 8 printers to Captain Marvel Inc. using a VISA card to pay for the transaction. A 3% service fee is charged by VISA. May 22: Sold 127.5 printers to Carol Danvers Public School on account. May 22: Sold 127.5 printers to Carol Danvers Public School on account. May 24: Returned for credit 9 damaged printers from Okoye Inc., costing $360 each. May 28: Received payment in full from Okoye Inc. for tha balance owing. May 28: Wrote off as uncollectable $6000 of accounts receivable. May 29: Paid accounts payable, $19500. May 30: Recovered an accounts recervable that was written off in April, $900. May 31: Paid operating expenses totalling $68250. 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 9 years. The furniture & fixtures are depreciated using the straight-line method over 9 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 recervable. 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 $40500 $13500 56375 $1425 Estinated Percentage Uncollectable 3% 7.5% 15% 30% Other Information: 1) The selling price for each of the printers is $675. 2) Iron Man Corporation uses the FIFO method under the perpetual inventory system to account for inventory Bed Deht Ex Cost of Goode Sold 3) In the past, Iron Man Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period. Required: 1) Prepare the joumal entries for the transactions including any adjusting journal entries for the month of May 31, 2022. 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. 2) Prepare an adjusted trial balance as at May 31, 2022. Place your answer under "Requirement 2" in the "Answer tab. Place your account titles in column H, debits in column I and credits in column J. 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. 3) Prepare the multi-step Income Statement for the month of May 2022. Ignore income taxes. Place your answer under "Requirement 3" in the "Answer" tab. 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. 4) Prepare a classified Balance Sheet at at May 31, 2022. Place your answer under "Requirement 4 in the "Answer" tab. 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. 5) Assume Iron Man Corporation overstated its ending inventory by $2550. How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place your answer under "Requirement 5 in the "Answer tab using the drop down menus. Enter any type responses in the designated spots. 6) Assume that Iron Man Corporation used the LCNRV to report inventory on the balance sheet The NRV of S825 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement 6" in the "Answer tab. 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. Iron Man Corporation is a small private corporation that sells desktop printers to local businesses and schools. On May 1, 2022, the following were the account balances of Iron Man Corporation: Debits Credits Cash 75750 Allowance for Doubtful Accounts 4500 Accounts Receivable 30000 Accumulated Depreciation (Van) 60000 Inventory (750 units) Accumulated Depreciation (Furniture & Fixtures Accounts Payable 142500 7500 Van 67500 18750 Furniture & Fixtures 22500 Common Shares 30000 Retained Earnings 217500 Total Debits 338250 Total Credits 338250 During May 2022, the following transactions took place: May 1: Bought 300 desktop printers for $225 each on account. May 1: Bought a van, paying S15000 cash as a down payment and signed a 7 month $22500, 6% note payable for the balance. The company paid $1200 to have its company logo painted on the side of the van. The residual value is $11250. The old van was sold for $15000; it cost $67500 and acculumated depreciation up to the date of disposal was $60000. May 10: Sold 180 printers to Okoye Inc. on account. May 12: Rand Enterprises agreed to sign a 60-day note receivable to replace a $1500 accounts receivable due that day. The interest rate on the note is 15% May 20: Sold 8 printers to Captain Marvel Inc. using a VISA card to pay for the transaction. A 3% service fee is charged by VISA. May 22: Sold 127.5 printers to Carol Danvers Public School on account. May 22: Sold 127.5 printers to Carol Danvers Public School on account. May 24: Returned for credit 9 damaged printers from Okoye Inc., costing $360 each. May 28: Received payment in full from Okoye Inc. for tha balance owing. May 28: Wrote off as uncollectable $6000 of accounts receivable. May 29: Paid accounts payable, $19500. May 30: Recovered an accounts recervable that was written off in April, $900. May 31: Paid operating expenses totalling $68250. 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 9 years. The furniture & fixtures are depreciated using the straight-line method over 9 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 recervable. 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 $40500 $13500 56375 $1425 Estinated Percentage Uncollectable 3% 7.5% 15% 30% Other Information: 1) The selling price for each of the printers is $675. 2) Iron Man Corporation uses the FIFO method under the perpetual inventory system to account for inventory Bed Deht Ex Cost of Goode Sold 3) In the past, Iron Man Corporation has used the following accounts on their financial statements: Bad Debt Expense, Cost of Goods Sold, Credit Card Fee, Depreciation Expense, Gain on Sale, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss on Sale, Notes Payable, Notes Receivable, Operating Expenses, Sales Returns, Sales Revenue. Not all accounts have been used each period. Required: 1) Prepare the joumal entries for the transactions including any adjusting journal entries for the month of May 31, 2022. 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. 2) Prepare an adjusted trial balance as at May 31, 2022. Place your answer under "Requirement 2" in the "Answer tab. Place your account titles in column H, debits in column I and credits in column J. 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. 3) Prepare the multi-step Income Statement for the month of May 2022. Ignore income taxes. Place your answer under "Requirement 3" in the "Answer" tab. 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. 4) Prepare a classified Balance Sheet at at May 31, 2022. Place your answer under "Requirement 4 in the "Answer" tab. 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. 5) Assume Iron Man Corporation overstated its ending inventory by $2550. How does this affect cost of goods sold, gross profit, and net income in the year it was discovered? If the error is undetected, what is the impact on cost of goods sold, gross profit, and net income for the following year. Place your answer under "Requirement 5 in the "Answer tab using the drop down menus. Enter any type responses in the designated spots. 6) Assume that Iron Man Corporation used the LCNRV to report inventory on the balance sheet The NRV of S825 is less than the FIFO cost. Prepare the journal entry. Place your answer under "Requirement 6" in the "Answer tab. 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.

Answer rating: 100% (QA)

Working FIFO Inventory Table Depreciation Schedul... View the full answer