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income statement

statement of retained earnings

balance sheet

journal entries

adjusted journal entries

World Series Inc. Statement of Financial Position As of December 31, 2018 ASSETS LIABILITIES Cash 445,000 Acc. Rec. 35,000 Inventory 70,000 Supplies 600 Building $400,000 Acc. Depr. (7,600) 392,400 Land 28,000 Note Payable 6% $10,000 Ace. Payable 24.000 Mortgage Payable 296,000 Total Liabilities $330,000 STOCKHOLDER EQUITY $2 Par Total Assets $971,000 Common Stock Excess of Par Retained Earnings 120,000 80,000 441,000 Total Equity $641,000 Total Liability & Equity $971,000 Jan. 1- Purchased Equipment for $180000. World Series Inc. paid $10,000 as a down payment and an 8% note signed for the balance of the purchase price. This equipment has a useful life of five years. Jan. 3 - Advertising expense contract was entered into this date but the contract period covered two years. Total cash payment was $30,000. Advertising campaigns for World Series products placed on Facebook sites throughout the two-year period of the contract. Jan. 5 - A two-year insurance policy secured for $12,000. A cash payment made and the policy effective period was January 1, 2019 to December 31, 2020. Jan. 31 - January's mortgage payment of $10,000 paid. Rate of interest was at a fixed rate of 10%. 5. Jan. 31 - Sold on account, various finished goods to customers for $200,000. Terms were 9/60 net 90. Cost of goods sold not accounted for at this date. 6. Feb. 1 - $70,000 of salary paid in cash. Feb. 4-A customer returned $8,000 of merchandise; the customer's account was credited for the entire purchase price of $8,000. World Series sold 300,000 shares of common stock at S7 per share. Cash was sent to company's bank account by the investment broker this date. 10. Feb. 12 - Purchased $64,000 worth of inventory only $5,000 paid at the time of purchase. 11. Feb 20 - Sold additional 200,000 shares of common stock for $12 per share. 12. Feb 28 - $10,000 monthly payment made on the note created on Jan. 1. 13. Mar. 1 - Received full payment for the goods sold on January 31. Mar. 5 - Paid in full the amount due for the inventory acquired on February 12. an Mar. 10 - Sales to customers were $60,000 and terms were 10/30 net 60. Payment was made in cash at this date. Mar. 20 - Declared a dividend of 50 cents per share. 17. Mar. 30 - End of the year supply inventory was $100. 18. Mar. 30 - End of the year merchandise inventory was $50,000. Mar. 30 - Income Tax Rate was 20%. 19. 20. Building has a 20-year useful life. Ending Inventory is $10,000 PREPARE THE: *Income Statement; *Statement of Retained Earnings; *Statement of Financial Position (Balance Sheet] *Journal Entries *Adjusted Journal Entries World Series Inc. Statement of Financial Position As of December 31, 2018 ASSETS LIABILITIES Cash 445,000 Acc. Rec. 35,000 Inventory 70,000 Supplies 600 Building $400,000 Acc. Depr. (7,600) 392,400 Land 28,000 Note Payable 6% $10,000 Ace. Payable 24.000 Mortgage Payable 296,000 Total Liabilities $330,000 STOCKHOLDER EQUITY $2 Par Total Assets $971,000 Common Stock Excess of Par Retained Earnings 120,000 80,000 441,000 Total Equity $641,000 Total Liability & Equity $971,000 Jan. 1- Purchased Equipment for $180000. World Series Inc. paid $10,000 as a down payment and an 8% note signed for the balance of the purchase price. This equipment has a useful life of five years. Jan. 3 - Advertising expense contract was entered into this date but the contract period covered two years. Total cash payment was $30,000. Advertising campaigns for World Series products placed on Facebook sites throughout the two-year period of the contract. Jan. 5 - A two-year insurance policy secured for $12,000. A cash payment made and the policy effective period was January 1, 2019 to December 31, 2020. Jan. 31 - January's mortgage payment of $10,000 paid. Rate of interest was at a fixed rate of 10%. 5. Jan. 31 - Sold on account, various finished goods to customers for $200,000. Terms were 9/60 net 90. Cost of goods sold not accounted for at this date. 6. Feb. 1 - $70,000 of salary paid in cash. Feb. 4-A customer returned $8,000 of merchandise; the customer's account was credited for the entire purchase price of $8,000. World Series sold 300,000 shares of common stock at S7 per share. Cash was sent to company's bank account by the investment broker this date. 10. Feb. 12 - Purchased $64,000 worth of inventory only $5,000 paid at the time of purchase. 11. Feb 20 - Sold additional 200,000 shares of common stock for $12 per share. 12. Feb 28 - $10,000 monthly payment made on the note created on Jan. 1. 13. Mar. 1 - Received full payment for the goods sold on January 31. Mar. 5 - Paid in full the amount due for the inventory acquired on February 12. an Mar. 10 - Sales to customers were $60,000 and terms were 10/30 net 60. Payment was made in cash at this date. Mar. 20 - Declared a dividend of 50 cents per share. 17. Mar. 30 - End of the year supply inventory was $100. 18. Mar. 30 - End of the year merchandise inventory was $50,000. Mar. 30 - Income Tax Rate was 20%. 19. 20. Building has a 20-year useful life. Ending Inventory is $10,000 PREPARE THE: *Income Statement; *Statement of Retained Earnings; *Statement of Financial Position (Balance Sheet] *Journal Entries *Adjusted Journal Entries

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