The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had...
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The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had the following adjusted trial balance: Account Notes Payable Wages Payable Additional Paid In Capital Common Stock at par value A/P PP&E (at cost) Inventory Cash Unearned Revenues Accumulated Depreciation Account Receivables Retained Earnings Balance ($) 20,000 8,000 300,000 60,000 60,000 110,000 62,000 419,000 10,000 10,000 ? 230,000 During 2021 the following transactions occurred: 1. A dividend of $20,000 was declared during 2021. These dividends will be paid in 2022. 2. During the year the company performed and delivered services and billed its clients for $900,000. Collections from customers were $800,000. 3. In addition to the transactions described in items 3 above, products were shipped to the customers who paid $10,000 in advance (see December 31, 2020 balances). The selling price was $80,000 and the customer paid the balance in 2021. 4. The company purchased $350,000 worth of inventory, on account. Payments on accounts payable were $200,000. 5. Miscellaneous expenses in the amount of $24,000 were paid in cash 6. Based on a physical count, inventory balance as of December 31, 2020 was $71,000. 7. The employees earned $200,000 as wages. Cash wage payments to employees were $190,000. 8. Additional PP&E worth $30,000 was purchased in cash. Depreciation for the year equals $10,000. 9. 10,000 shares at par value of $1 were issued and sold for $20 per share. 10. The note worth of $20,000 was paid with an additional Interest expense of $200. 11. The company incurred $24,000 in rent expenses and paid $22,000 of it. 12. The company calculated its tax obligations for 2021. Tax in the amount of $40,000 is due for the entire year of which $30,000 was paid in the previous quarters of 2021. Revenues COGS Wages Expense Depreciation Expense Interest Expense Rent Expense Miscellaneous Expenses Tax Expense NET INCOME The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had the following adjusted trial balance: Account Notes Payable Wages Payable Additional Paid In Capital Common Stock at par value A/P PP&E (at cost) Inventory Cash Unearned Revenues Accumulated Depreciation Account Receivables Retained Earnings Balance ($) 20,000 8,000 300,000 60,000 60,000 110,000 62,000 419,000 10,000 10,000 ? 230,000 During 2021 the following transactions occurred: 1. A dividend of $20,000 was declared during 2021. These dividends will be paid in 2022. 2. During the year the company performed and delivered services and billed its clients for $900,000. Collections from customers were $800,000. 3. In addition to the transactions described in items 3 above, products were shipped to the customers who paid $10,000 in advance (see December 31, 2020 balances). The selling price was $80,000 and the customer paid the balance in 2021. 4. The company purchased $350,000 worth of inventory, on account. Payments on accounts payable were $200,000. 5. Miscellaneous expenses in the amount of $24,000 were paid in cash 6. Based on a physical count, inventory balance as of December 31, 2020 was $71,000. 7. The employees earned $200,000 as wages. Cash wage payments to employees were $190,000. 8. Additional PP&E worth $30,000 was purchased in cash. Depreciation for the year equals $10,000. 9. 10,000 shares at par value of $1 were issued and sold for $20 per share. 10. The note worth of $20,000 was paid with an additional Interest expense of $200. 11. The company incurred $24,000 in rent expenses and paid $22,000 of it. 12. The company calculated its tax obligations for 2021. Tax in the amount of $40,000 is due for the entire year of which $30,000 was paid in the previous quarters of 2021. Revenues COGS Wages Expense Depreciation Expense Interest Expense Rent Expense Miscellaneous Expenses Tax Expense NET INCOME
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Answer rating: 100% (QA)
Solution Revenues 980000 COGS 62000350000 71000 341000 Gross profit 639000 Wages expense 200000 ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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