Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common
Fantastic news! We've Found the answer you've been seeking!
Question:
Sage Inc. experienced the following transactions for Year 1, its first year of operations:
Transcribed Image Text:
1. Issued common stock for $110,000 cash. 2. Purchased $185,000 of merchandise on account. 3. Sold merchandise that cost $158,000 for $314,000 on account. 4. Collected $280,000 cash from accounts receivable. 5. Paid $165,000 on accounts payable. 6. Paid $64,000 of salaries expense for the year. 7. Paid other operating expenses of $80,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $20,400 8,500 1,700 1,700 1,780 Percent Likely to be Uncollectible 0.01 0.05 0.10 0.20 0.50 Allowance Balance Required a. Organize the transaction data accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? 1. Issued common stock for $110,000 cash. 2. Purchased $185,000 of merchandise on account. 3. Sold merchandise that cost $158,000 for $314,000 on account. 4. Collected $280,000 cash from accounts receivable. 5. Paid $165,000 on accounts payable. 6. Paid $64,000 of salaries expense for the year. 7. Paid other operating expenses of $80,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $20,400 8,500 1,700 1,700 1,780 Percent Likely to be Uncollectible 0.01 0.05 0.10 0.20 0.50 Allowance Balance Required a. Organize the transaction data accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1?
Expert Answer:
Answer rating: 100% (QA)
a Organize the transaction data in accounts under an accounting equation Accounting Equation Assets Liabilities Equity Issued common stock for 110000 cash Increase in Cash Assets 110000 Increase in Co... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $50,000 cash. 2. Purchased $140,000 of merchandise on account. 3. Sold...
-
Thorne Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $60,000 cash. 2. Purchased $210,000 of merchandise on account. 3. Sold...
-
Huggins Inc. experienced the following transactions for 2010, its first year of operations. 1. Issued common stock for $60,000 cash. 2. Purchased $210,000 of merchandise on account. 3. Sold...
-
According to Hostels.com. The average room rate for a New York City hotel was $204 in 2011. Suppose the Chamber of Commerce of New York City would like to test if this rate has changed recently by...
-
An ideal gas consisting of molecules of mass rn with concentration n has a temperature T. Using the Maxwell distribution function, find the number of molecules reaching a unit area of a wall at the...
-
Nest Company started Year 2 with a beginning balance of $11,000 in accounts receivable. During the year, revenue on account amounted to $17,000. The company incurred $5,000 of expenses on account and...
-
Specifically, we examine the 2004 Survey of Consumer Finances (SCF), a nationally representative sample that contains extensive information on assets, liabilities, income, and demographic...
-
During August 2014, Packer Manufacturing had the following cash receipts and disbursements: Cash received from customers .......... $319,000 Cash received from selling equipment ....... 11,200 Cash...
-
Let D= {(x, y): x + y < 1} C R and consider the Neumann BVP Au=0, (x,y) E D h, x + y = 1, where - Vu n denotes the normal derivative of u on OD, n is the unit normal vector to OD, and where h is a...
-
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2024, gains from selling trading securities totaled $8...
-
The following companies need your assistance in determining the accounting treatments for their properties. Kerem Bhd Kerem Bhd owns two properties in Changlun during the current reporting period....
-
For a calorically perfect gas, derive the relation \(c_{p}-c_{v}=R\). Repeat the derivation for a thermally perfect gas.
-
A \(0.250-\mathrm{kg}\) mass on a spring has velocity as a function of time given by \(v(x, t)=(4.70 \mathrm{~cm} / \mathrm{s}) \cos [(4.16 \mathrm{rad} / \mathrm{s}) t]\). Find the (a) the period;...
-
On average, Mars takes 687 days to make a complete revolution around the sun. Considering its orbit as nearly circular as seen by a distant observer standing in the plane of the orbit, what is the...
-
The period of a pendulum on the surface of the Earth is 1. It is then brought at a higher altitude. For it to maintain its period, should the length of the pendulum string be made longer or shorter?
-
A mass attached to a spring oscillates in simple harmonic motion along the \(x\)-axis. The limits of its motion are \(x=-5 \mathrm{~cm}\) and \(x=45 \mathrm{~cm}\) and it goes from one of these...
-
The formula to find the surface area of a cylinder is SA =2 279 5.) The formula to find the surface area of a cylinder is SA=2rr+ 2nrh. If the diameter of the base is 15 m and the cylinder stands 12...
-
Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the...
-
Wilkes Mutual Insurance Company issued a $100,000, 5%, 10-year bond payable at 111 on January 1, 2018. Interest is paid semiannually on January 1 and July 1. Requirements 1. Journalize the issuance...
-
When is an adjusted trial balance prepared, and what is its purpose?
-
McGregor Insurance Agency started the year with a beginning Retained Earnings balance of $27,500. During the year, McGregor Insurance Agency earned $34,000 of Service Revenue and incurred $23,500 of...
-
Distinguish between a heat engine, a heat pump, and a refrigerator.
-
Sketch and explain split air conditioner?
-
With a neat sketch of a room air-conditioner, explain its working principle.
Study smarter with the SolutionInn App