80.2K

Verified Solution

Link Copied!

Part 1 20x1 is the first year of operations for Vandelay Industries. Consider the following transactions: 1-Jan value) Edmunds 11th edition Reference (with Date: Transactions during 20x1 chapters) 1-Jan Acquired $75,000 cash from the issue of common stock at par value Proprietorships, Partnerships, etc. - Ch11 Paid $15,000 cash for computer (3 year useful life and no salvage Acct. Long-Term Operational Assets - Ch8 16-Feb Purchased $10,000 of inventory on account. Acct. for a Merchandising Business - Ch4 30-Mar Paid $1,800 of accounts payable. Acct. for a Merchandising Business - Ch4 Sold merchandise for $37,000 on account. The merchandise 20-Jul originally cost $7,000. Acct. for a Merchandising Business - Ch4 1-Aug Received $25,000 cash from accounts receivable Acct. for a Merchandising Business - Ch4 19-Nov Paid a dividend of $6,000 cash to the stockholders. Proprietorships, Partnerships, etc. - Ch11 31-Dec Record straight-line depreciation on computer system. Acct. Long-Term Operational Assets - Che A) Prepare the journal entry for the transaction on July 20h when the company sold merchandise for $37,000 on account. The merchandise originally cost $7,000. Account title Debit Credit ORDER DOES NOT MATTER B) Prepare the journal entry to record the straight-line depreciation as of December 31 (3 year useful life and no salvage value). Account title Debit Credit C. Prepare an income statement for 20x1. Vandelay Industries Income Statement Sales Cost of Goods Sold Gross Margin 0 0 0 Less: Operating Expenses Depreciation Expense Net Income 0 D. Prepare a balance sheet as of December 31, 20X1. Vandelay Industries Balance Sheet 77,200 12,000 3,000 92,200 0 Current Assets Cash Accounts Rec. Merchandise Inventory Long-term Assets Computer Equipment Total Assets Current Liabilities Accounts Payable Stockholders' Equity Common Stock Retained Earnings 8,200 75,000 19,000 94,000 Total Liabilities and Stockholders' Equity 102,200

Answer & Explanation Solved by verified expert

See Answer