Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $180,000 of merchandise on account. 3. Sold merchandise that cost $162,000 for $322,000 on account. 4. Collected $288,000 cash from accounts receivable. 5. Paid $160,000 on accounts payable. 6. Paid $46,000 of salaries expense for the year. 7. Paid other operating expenses of $62,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Percent Likely to Be Allowance Past Due Amount Uncollectible Balance Current $20,400 0.01 0-30 8,500 0.05 31-60 1,700 0.10 61-90 1,700 0.20 Over 90 days 1,700 0.50 Required a. Organize the transaction data in 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? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sig Accounts Titles for Retained Earnings, leave the cell blank.) SAGE INC. Accounting Equation for the Year 1 Assets = Liabilities + Equity Event Cash + NRV Accounts Receivable + Merchandise Accounts Inventory + Payable Common Stock + Retained Earnings Accounts Titles for Retained Earnings 1. 2. 3a. 3b. 4. + + = + + + + + + 5. 6. +++++ +++++ 7. + + 8. + + Bal. + + + = ++++ +++++ + + + + + + Complete this question by entering your answers in the Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Req Sheet Casl Prepare the income statement for Sage Inc. for Year 1. SAGE INC. Income Statement For the Year Ended Year 1 Operating expenses Total operating expenses Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Prepare the statement of changes in stockholders' equity for Sage Inc. for Year 1. SAGE INC. Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Prepare the balance sheet for Sage Inc. for Year 1. (Be sure to list the ass SAGE INC. Assets Total assets Liabilities Total liabilities Stockholders' equity Balance Sheet As of the End of the Year 1 Total stockholders' equity Total liabilities and stockholders' equity Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Prepare the statement of cash flows for Sage Inc. for Year 1. (Cash outflows should be indicated w SAGE INC. Statement of Cash Flows For the Year Ended Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C What is the net realizable value of the accounts receivable at December 31, Year 1? Net realizable value Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $180,000 of merchandise on account. 3. Sold merchandise that cost $162,000 for $322,000 on account. 4. Collected $288,000 cash from accounts receivable. 5. Paid $160,000 on accounts payable. 6. Paid $46,000 of salaries expense for the year. 7. Paid other operating expenses of $62,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Percent Likely to Be Allowance Past Due Amount Uncollectible Balance Current $20,400 0.01 0-30 8,500 0.05 31-60 1,700 0.10 61-90 1,700 0.20 Over 90 days 1,700 0.50 Required a. Organize the transaction data in 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? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sig Accounts Titles for Retained Earnings, leave the cell blank.) SAGE INC. Accounting Equation for the Year 1 Assets = Liabilities + Equity Event Cash + NRV Accounts Receivable + Merchandise Accounts Inventory + Payable Common Stock + Retained Earnings Accounts Titles for Retained Earnings 1. 2. 3a. 3b. 4. + + = + + + + + + 5. 6. +++++ +++++ 7. + + 8. + + Bal. + + + = ++++ +++++ + + + + + + Complete this question by entering your answers in the Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Req Sheet Casl Prepare the income statement for Sage Inc. for Year 1. SAGE INC. Income Statement For the Year Ended Year 1 Operating expenses Total operating expenses Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Prepare the statement of changes in stockholders' equity for Sage Inc. for Year 1. SAGE INC. Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Prepare the balance sheet for Sage Inc. for Year 1. (Be sure to list the ass SAGE INC. Assets Total assets Liabilities Total liabilities Stockholders' equity Balance Sheet As of the End of the Year 1 Total stockholders' equity Total liabilities and stockholders' equity Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Prepare the statement of cash flows for Sage Inc. for Year 1. (Cash outflows should be indicated w SAGE INC. Statement of Cash Flows For the Year Ended Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C What is the net realizable value of the accounts receivable at December 31, Year 1? Net realizable value
Expert Answer:
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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...
-
In your opinion, which companies (healthcare or non-healthcare related) provide superior customer service? Which companies provide average or mediocre customer service? Name the factors most...
-
1. Describe MHC's strategy in terms of market position. Also, identify the type of external environment MHC is operating in and the degree to which the strategy matches the environment. 2. Identify...
-
Select three banks, savings banks, or credit unions in your community. Contact each to gather information on the types of checking accounts they offer and the basic rules of the accounts, including...
-
When a suspected drunk driver blows 188 mL of his breath through the fuel-cell breathalyzer described in Section 20.7, the breathalyzer produces an average of 324 mA of current for 10 s. Assuming a...
-
Pop Corporation acquired 70 percent of the outstanding common stock of Son Corporation on January 1, 2016, for $350,000 cash. Immediately after this acquisition the balance sheet information for the...
-
What is the return on an Investment that costs $500 today and will return $800 at the end of 4 years? What long will it take a $100 investment to double to $200 if the interest rate is 6%?
-
The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2020, is shown below: The Cash account in the general ledger appeared as follows on June 30: A list of deposits made and...
-
(a) Employ superposition to determine the individual contribution from each independent source to the voltage v as labeled in the circuit shown in Fig. 5.57. (b) Compute the power absorbed by the ?...
-
Do you feel that the period immediately after the end of the Spanish flu of 1918 provides a good indicator as to how the economy is likely to function in the years of recovery after the COVID-19...
-
Sydney Inc. (a calendar year end corporation) uses accrual basis accounting. After all transactions are recorded for the year ended December 31, 2023, but before any adjustments are made, the...
-
When using the Sales Receipt transaction window, what actions are occurring behind the scenes?
-
How to revised This type of profit over public safety shows that supplement companies have no interest in protecting the public as long as they are seeing profits from the merchandise that is being...
-
Why is it important to establish an effective system for cost and performance monitoring and control? Explain.
-
Write a paper about The Status of Christian and Jewish Communities in the Islamic Middle East BEFORE 1800 C.E?
-
MgO prevents premature evaporation of Al in a furnace by maintaining the aluminum as Al2O3. Another type of matrix modifier prevents loss of signal from the atom X that readily forms the molecular...
-
Wisconsin Tool Company Wisconsin Tool Company (WTC) is a business located in Madison, WI that manufacturers tool and die equipment. WTC executed three sales in Year 23. See Sale Agreements in the...
-
Saenz-Qualified Business Income Javier and Maria Saenz, married filing jointly, have several investments. Their adjusted gross income and taxable income for 2023 is \( \$ \) 300,000 and \( \$ \)...
-
Find the Laplace transform of the following signals and locate the poles and zeros of \(F(s)\). (a) \(f(t)=-10 \mathrm{~d} \delta(t) / d t\) (b) \(f(t)=120 \cos (377 t) u(t)\). (c)...
Study smarter with the SolutionInn App