first of all, prepare journal entry with debit, credit
Listed below are the accounts and their respective balances for J & K,Inc.at December 31,2004:
Cash Accounts Receivable Inventory (15 @$3,000 each) Prepaid Insurance Security Deposit Furniture &Fixtures Accumulated Depreciation Accounts Payable Wages Payable Taxes Payable Rent Payable Note Payable Common Stock (3,000 shares) Retained Earnings
$50,000 35,000 45,000 5,000 1,000 110,000 20,000 12,000 7,000 5,000 2,000 80,000 30,000 90,000
During 2005 the following transactions occurred: Paid beginning accounts payable. Received all beginning accounts receivable Purchased 10 Things at $4,000 each. Paid 25% down and will pay the rest later. Sold 18 Things for $10,000 each at 70% down (cash) and the other 30% due later. Paid 2004 taxes payable. Paid cash for wages of $25,000. (Includes the $7,000 owed at the end of 2004). Received additional payments from customers of $20,000. Paid 14 months' rent, $28,000 Paid additional $10,000 to creditors. Issued 600 shares of common stock for $6,000 on October 1st. Paid $2,000 advertising for 2005 Paid a $1.00 per share dividend to shareholders on December 31st, Paid annual payment on Note Payable of $20,000 principal plus interest at 8% on December 31st Bought a piece of land for $50,000 on December 31st,putting $10,000 down and mortgaging the rest. There are no principal payments due until 2009
Also,during the year the company paid 50% of the 2005 taxes.The tax rate is 30%. The Company uses the FIFO inventory system. At December 31,2005 the company owed $10,000 in wages which had not yet been paid. The prepaid insurance at 12/31/04 was for a policy that had exactly two years left to run (05,06 The Furniture & Fixtures originally cost $110,000, had a twenty year life and were expected to be worth $10,000 at the end. The market price per share is $80
Prepare transactions using NAC, BS, CF and IS
