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record transactions 1. Owners invested $ 75,000 in the Des...

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Accounting

record transactions

1. Owners invested $ 75,000 in the Des Plaines Company.

2. Sales were $150,000, of which 75% were on account and the rest were cash sales.

3. Cash collections from credit customers were $ 91,000.

4. Raw materials of $ 82,000 was purchased, all on account.

5. Cash payments for raw materials were $71,000 (refers to 4 above).

6. Wages earned by employees during 1998 were $51,000, of which $7,000 remains unpaid at the end of the year.

7. Cash received from customer for work to be performed in 2009 was $8,000.

8. Fixed assets of $ 45,000 were purchased for cash at the beginning of 2008. It was estimated that the assets would have a useful life of 9 years.

9. On January 1, 2008, $ 10,800 was paid in advance for 18 months of rent.

10. Calculate depreciation and pre-paid expenses.

11. Ending inventory of raw materials at December 31, 2008 was $5,200.

12. Taxes on income are calculated using a tax rate of 30%.

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