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 â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ $ 92,100
Accounts Receivable â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 361,500
Supplies â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 24,600
Prepaid Advertising â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 2,000
Building, Warehouse â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦… 2,190,000
Accumulated Depreciation, Warehouse â€¦â€¦â€¦â€¦â€¦.. 280,000
Equipment â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 795,000
Accumulated Depreciation, Equipment â€¦â€¦â€¦â€¦â€¦â€¦ 580,000
Land â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 304,975
Accounts Payable â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 17,600
Wages Payable â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 30,200
Notes Payable (due in 2013) â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦. 1,000,000
Common Stock â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 1,400,000
Retained Earnings, 12/31/2008 â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. 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 yearâ€™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.
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 Tarkingtonâ€™s 2009 journal entries? Why or why not? Get FInance Help Today