3) a) Please write out the journal entries for all C Time Management Corporation transactions b)...

 

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3) a) Please write out the journal entries for all C Time Management Corporation transactions b) Create the C Time Management Corp Income statement, Cash flow statement and year end BS. C Time Management Corporation has the following Balance sheet at the beginning of the year. Cash 100 A/P A/R, net Revolving credit drawn - 5% Accrued expenses Taxes Payable Current liabilities Inventory Pre-paid Total Current Assets PPE, gross less accumulated deprec PPE, net 125 300 50 575 700 (100) 600 1,175 Long-term debt - 10% Total Assets C Time Management Corp has the following transaction during the year: Common Stock Retained earnings Total O/E 4 Buys new plant for $100 (pays in cash) 5 Sells $200 of its inventory for $500 (all on account). 6 Collects $525 of its accounts receivable Liabilities plus O/E 1 On the first day of the year raises $100 of new long term debt with a 10% coupon. 2 The company then pays down the revolver to zero. 3 Buys $50 of inventory on account. 7 Accrues interest on its debt and pay the entire amount in cash. 8 Recognizes another $70 of depreciation expense. 9 Estimates for the year the company will have bad debt expense of 50 10 Hires an advertising agency. The company pays the advertising agency $150 in cash. The ad agency only completes $85 worth of work in the year. 11 Accrues $50 of additional SG&A expenses and pays for 45 worth in cash. 12 Accrues its taxes for the year (assume a 40% tax rate). Only pays for $5 worth. 300 20 50 370 100 400 305 705 1,175 1 of 2 3) a) Please write out the journal entries for all C Time Management Corporation transactions b) Create the C Time Management Corp Income statement, Cash flow statement and year end BS. C Time Management Corporation has the following Balance sheet at the beginning of the year. Cash 100 A/P A/R, net Revolving credit drawn - 5% Accrued expenses Taxes Payable Current liabilities Inventory Pre-paid Total Current Assets PPE, gross less accumulated deprec PPE, net 125 300 50 575 700 (100) 600 1,175 Long-term debt - 10% Total Assets C Time Management Corp has the following transaction during the year: Common Stock Retained earnings Total O/E 4 Buys new plant for $100 (pays in cash) 5 Sells $200 of its inventory for $500 (all on account). 6 Collects $525 of its accounts receivable Liabilities plus O/E 1 On the first day of the year raises $100 of new long term debt with a 10% coupon. 2 The company then pays down the revolver to zero. 3 Buys $50 of inventory on account. 7 Accrues interest on its debt and pay the entire amount in cash. 8 Recognizes another $70 of depreciation expense. 9 Estimates for the year the company will have bad debt expense of 50 10 Hires an advertising agency. The company pays the advertising agency $150 in cash. The ad agency only completes $85 worth of work in the year. 11 Accrues $50 of additional SG&A expenses and pays for 45 worth in cash. 12 Accrues its taxes for the year (assume a 40% tax rate). Only pays for $5 worth. 300 20 50 370 100 400 305 705 1,175 1 of 2

Answer rating: 100% (QA)

Balance Sheet of CTime Management Corporation after considering the transactions Assets Amount Liabilities Amount Cash 385 Accounts Payable 350 Accoun... View the full answer