Below are the account balances of Nava Inc. on January 1, 2017. Nava Inc.'s fiscal year...

 

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Below are the account balances of Nava Inc. on January 1, 2017. Nava Inc.'s fiscal year ends on December 31. The accounts have normal debit and credit balances. Cash Additional paid-in capital Property, plant and equipment Common stock ($1 par value) Accounts payable Other current assets Inventory $2,400 1,860 1,050 240 79 500 300 Short-term securities Long-term note payable Long-term debt Retained earnings Other current liabilities Accounts receivable $870 640 490 1,946 115 250 In addition, the following events occurred during 2017: a. Earned $490 in sales, $400 was received in cash, the rest on account. Cost of goods sold is $215. b. Purchased a machine for $710 in exchange for a long-term note payable. c. Prepaid $75 for an insurance policy for 2018. Prepaid insurance is recorded in other current assets". d. Paid $180 in cash to employees as wages for work performed in 2017. e. Paid $60 to a supplier for an accounts payable balance. f. Cleaning supplies are presented as part of "other current assets". The beginning balance of cleaning supplies in 2017 was $114. During the year the company purchased additional supplies for $35 in cash. A physical count of the supplies at the end of 2017 showed supplies at the amount of $105. g. A customer paid one-fifth of the accounts receivable balance at the beginning of 2017. h. Nava Inc. paid off long-term debt at the amount of $335. The associated interest expense incurred and paid during 2017 was $33. i Sold $520 of short-term securities for $520 in cash. j. Issued 100 shares for $620 in cash k. Declared a $32 dividend in 2017. The dividend was paid in 2018. Dividend payable is part of "Other current liabilities". Required: 1. Prepare T-accounts for all the accounts listed above and enter the beginning balances. You will first need to determine for each account if it has a debit or credit balance. Set aside space for additional T-accounts for income statement accounts. 2. Record each of the transactions in the appropriate T-accounts. You will need to make new T- accounts for income statement accounts. The beginning balance for the income statement accounts is zero. 3. Prepare an income statement for 2017. Below are the account balances of Nava Inc. on January 1, 2017. Nava Inc.'s fiscal year ends on December 31. The accounts have normal debit and credit balances. Cash Additional paid-in capital Property, plant and equipment Common stock ($1 par value) Accounts payable Other current assets Inventory $2,400 1,860 1,050 240 79 500 300 Short-term securities Long-term note payable Long-term debt Retained earnings Other current liabilities Accounts receivable $870 640 490 1,946 115 250 In addition, the following events occurred during 2017: a. Earned $490 in sales, $400 was received in cash, the rest on account. Cost of goods sold is $215. b. Purchased a machine for $710 in exchange for a long-term note payable. c. Prepaid $75 for an insurance policy for 2018. Prepaid insurance is recorded in other current assets". d. Paid $180 in cash to employees as wages for work performed in 2017. e. Paid $60 to a supplier for an accounts payable balance. f. Cleaning supplies are presented as part of "other current assets". The beginning balance of cleaning supplies in 2017 was $114. During the year the company purchased additional supplies for $35 in cash. A physical count of the supplies at the end of 2017 showed supplies at the amount of $105. g. A customer paid one-fifth of the accounts receivable balance at the beginning of 2017. h. Nava Inc. paid off long-term debt at the amount of $335. The associated interest expense incurred and paid during 2017 was $33. i Sold $520 of short-term securities for $520 in cash. j. Issued 100 shares for $620 in cash k. Declared a $32 dividend in 2017. The dividend was paid in 2018. Dividend payable is part of "Other current liabilities". Required: 1. Prepare T-accounts for all the accounts listed above and enter the beginning balances. You will first need to determine for each account if it has a debit or credit balance. Set aside space for additional T-accounts for income statement accounts. 2. Record each of the transactions in the appropriate T-accounts. You will need to make new T- accounts for income statement accounts. The beginning balance for the income statement accounts is zero. 3. Prepare an income statement for 2017.

Answer rating: 100% (QA)

Answer Answer b Cash Inventory Other Current Assets Beg Bal 240000 7500 Prepaid Insurance c Beg Bal 30000 21500 Cost of Goods Sold a2 Beg Bal 50000 44... View the full answer