Corporate Finance Assignment/ Professional Essay Writers

Tarkington Freight Service provides delivery of the merchandise to retail grocery stores in the Northeast. At the beginning of 2009, the following account balances were available:

Cash ………………………………………………… $ 92,100
Accounts Receivable ……………………………….. 361,500
Supplies …………………………………………….. 24,600
Prepaid Advertising ………………………………… 2,000
Building, Warehouse ………………………………… 2,190,000
Accumulated Depreciation, Warehouse …………….. 280,000
Equipment …………………………………………… 795,000
Accumulated Depreciation, Equipment ……………… 580,000
Land ………………………………………………….. 304,975
Accounts Payable …………………………………….. 17,600
Wages Payable ……………………………………….. 30,200
Notes Payable (due in 2013) …………………………. 1,000,000
Common Stock ……………………………………….. 1,400,000
Retained Earnings, 12/31/2008 ……………………….. 462,375

During 2009 the following transactions occurred:

a. Tarkington delivered the merchandise to customers, all on credit, for $2,256,700.
Tarkington also made cash deliveries of merchandise for $686,838.

b. There remains $286,172 of accounts receivable to be collected on December 31, 2009.

c. Tarkington purchased advertising of $138,100 during 2009 and debited the amount to prepaid advertising.

d. Supplies of $27,200 were purchased on credit and debited to the supplies account.

e. Accounts payable at the beginning of 2009 were paid early in 2009. There remains $5,600 of accounts payable unpaid at year-end.

f. Wages payable at the beginning of 2009 were paid early in 2009. Wages were earned and paid during 2009 in the amount of $666,142.

g. During the year, Trish Hurd, a principal stockholder, purchased an automobile costing $42,000 for her personal use.

h. One-half year’s interest at 6 percent was paid on the note payable on July 1, 2009.

i. Property taxes were paid on the land and buildings in the amount of $170,000.

j. Dividends were declared and paid in the amount of $25,000.

2. The following data are available for adjusting entries:
Supplies in the amount of $13,685 remained unused at year-end.
Annual depreciation on the warehouse building is $70,000.
Annual depreciation on the warehouse equipment is $145,000.
Wages of $60,558 were unrecorded and unpaid at year-end.
Interest for six months at 6 percent per year on the note is unpaid and unrecorded at year-end.
Advertising of $14,874 remained unused at the end of 2009.
The income tax rate is 30 percent.

Required:

1. Post the 2009 beginning balances to T-accounts. Prepare journal entries for transactions a through k and post the journal entries to T-accounts adding any new T-accounts you need.

2. Prepare the adjustments and post the adjustments to the T-accounts adding any new T-accounts you need.

3. Prepare an income statement.

4. Prepare a statement of changes in retained earnings.

5. Prepare a classified balance sheet

6. Prepare closing entries.

7. Did you include transaction g among Tarkington’s 2009 journal entries? Why or why not?  Get FInance Help Today