Rudler Associates, reported the following account balances on January 1. Debit Credit Accounts Receivable $ 5,000 Accumulated
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Question:
Rudler Associates, reported the following account balances on January 1.
Debit | Credit | |
---|---|---|
Accounts Receivable | $ 5,000 | |
Accumulated Depreciation | $ 30,000 | |
Additional Paid-in Capital | 130,000 | |
Allowance for Doubtful Accounts | 2,000 | |
Bonds Payable | 0 | |
Buildings | 287,000 | |
Cash | 20,000 | |
Common Stock, 10,000 shares of $1 par | 10,000 | |
Notes Payable (long-term) | 20,000 | |
Retained Earnings | 120,000 | |
Treasury Stock | 0 | |
TOTALS | $ 312,000 | $ 312,000 |
The company entered into the following transactions during the year.
January 15 | Issued 25,000 shares of $1 par common stock for $90,000 cash. |
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January 31 | Collected $3,000 from customers on account. |
February 15 | Reacquired 3,400 shares of $1 par common stock into treasury for $37,400 cash. |
March 15 | Reissued 2,400 shares of treasury stock for $28,400 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, $1,210 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 $270,000 of service revenue, all of which was collected in cash. |
December 30 | Paid $240,000 cash for this years 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.) |
Requirements:
Balance Sheet tab - Prepare the noncurrent liabilities and stockholders equity sections of the balance sheet at December 31. At the end of the year, the adjusted net income was $20,000.
Impact on Debt to Assets Ratio tab - Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio.
Posted Date: