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American Laser, Inc., reported the following account balances on January 1.

	Debit			Credit
Accounts Receivable	$	5,000
Accumulated Depreciation				$	30,000
Additional Paid-in Capital					122,000
Allowance for Doubtful Accounts					2,000
Bonds Payable					0
Buildings		279,000
Cash		18,000
Common Stock, 10,000 shares of $1 par					10,000
Notes Payable (long-term)					18,000
Retained Earnings					120,000
Treasury Stock		0
TOTALS	$	302,000		$	302,000

The company entered into the following transactions during the year.

Jan.		15		Issued 21,000 shares of $1 par common stock for $82,000 cash.
Jan.		31		Collected $3,000 from customers on account.
Feb.		15		Reacquired 3,320 shares of $1 par common stock into treasury for $36,520 cash.
Mar.		15		Reissued 2,320 shares of treasury stock for $27,520 cash.
Aug.		15		Reissued 600 shares of treasury stock for $4,600 cash.
Sept.		15		Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock.
Oct.		1		Issued 100, 10-year, $1,010 bonds, at a quoted bond price of 101.
Oct.		3		Wrote off a $2,000 balance due from a customer who went bankrupt.
Dec.		29		Recorded $262,000 of service revenue, all of which was collected in cash.
Dec.		30		Paid $232,000 cash for this years wages through December 31. Ignore payroll taxes and payroll deductions.
Dec.		31		Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)

Dec.

31

Close the revenue and expense accounts.

Dec.

31

Close the dividends account.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Balance Sheet
• Debt to Assets Ratio

General Journal tab - Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs.

General Ledger tab - Each journal entry is posted automatically to the general ledger.

Trial Balance tab - The option you choose will be the values used to populate the balance sheet tabs.

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.

General Journal tab - Prepare a closing journal entry for the income statement accounts, assuming the events on December 2931 were the only transactions to affect income statement accounts. General Journal tab - After preparing the financial statements, record the closing entry for Dividends. Impact on Debt to Assets Ratio tab - Calculate the Debt to Assets Ratio and analyze the impact of the Debt to Assets Ratio.

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