Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100...

  

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Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet. Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet. Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet. Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet. Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet. Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet. Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet. Lionel, Inc. began Year 3 with the following account balances, in alphabetical order Accounts Payable 8,100 Accounts Receivable 13,000 Allowance for doubtful 650 accounts Cash 30,525 Common Stock 40,000 Inventory 11,150 Land 25.000 Note Receivable 10,000 Retained earnings 41,400 Supplies 475 The following summary transactions occurred during Year 3 for Lionel, Inc. (Round calculations to the nearest whole dollar.) 1. Purchased equipment for cash of $8,000. The company incurred $975 in transportation costs, $550 installation fees, and paid a $475 fine for illegal parking while the equipment was being delivered. 2. Paid $9,000 in advance to lease office facilities. 3. Purchased $300 of supplies on account to be used over the next several months by the business. 4. Purchased $30,000 of inventory on account, FOB destination point. 5. The responsible party paid $500 cash to the shipping company in event #4. 6. Sold inventory costing $10,000 for $35,000 on account with terms 1/15, n/30. 7. Paid $10,000 cash on accounts payable: 8. Collected $20,000 of accounts receivable on items sold in event # 6 after the discount period. 9. Paid dividends of $500. 10. Paid $1.200 for advertising expense for the year. 11. Wrote off an uncollectible account of $150. 12. On December 20, received $5,400 cash in advance for services to be performed during Year 4. 13. Sold the land for $37,000 cash. Year-end Adjustments 1. Accrued interest on the Note Receivable in the amount of $200. 2. The advance payment for rental of the office facilities (event #2) was made on April 1 for a one-year lease term. 3. Counted supplies on hand at the end of the period and determined that $500 had been used during the year. 4. Recognized $2,000 of depreciation on equipment. 5. Recognized uncollectible account expense for the year. Lionel uses the allowance method and estimates that 5% of the accounts receivable will not be collected. 3. Create an adjusted Trial Balance. 4. Using good form, prepare a multi-step income statement, statement of changes in stockholders' equity and a classified balance sheet.

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Working Note 1 A fine of 475 paid as a result of unautho... View the full answer