Harriets Hats Template Spring 2017 Solution PDF

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Harriets Hats Template Spring 2017 Solution...

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Harriet's Hats Journal Entries For the Year Ended December 31, 2016 Date

Account Accounts Receivable Sales

$

Cash Accounts Receivable

$

Allowance for Doubtful Accounts Accounts Receivable

$

Purchases Accounts Payable

$

Accounts Payable Cash

$

Inventory Cost of Goods Sold Purchases

$ $

Property, Plant, and Equipment Cash

$

Depreciation Expense Accumulated Depreciation

$

Cash Accumulated Depreciation Loss on Sale Property, Plant, and Equipment

$ $ $

Depreciation Expense Accumulated Depreciation

$

Interest Payable Interest Expense Cash

$ $

Interest Expense Cash

$

Debit 984,000

Credit $

984,000

$

721,000

$

21,050

$

568,990

$

549,040

$

568,990

$

32,000

$

1,425

$

60,000

$

17,425

$

3,000

$

3,000

721,000

21,050

568,990

549,040

7,310 561,680

32,000

1,425

6,750 47,025 6,225

17,425

2,500 500

3,000

Harriet's Hats Journal Entries For the Year Ended December 31, 2016 Date

Account Note Payable Cash

$

Cash Note Payable

$

Interest Expense Interest Payable

$

Rent Expense Prepaid Rent

$

Prepaid Rent Cash

$

Rent Expense Prepaid Rent

$

Wages Expense Wages Payable Cash

$ $

Wages Expense Wages Payable

$

Other Expenses Cash

$

Income Taxes Payable Cash

$

Dividends Cash

$

Cash Common Stock Additional Paid In Capital

$

Bad Debts Expense Allowance for Doubtful Accounts

$

Income Taxes Expense Income Taxes Payable

$

Debit 75,000

Credit $

75,000

$

120,000

$

1,800

$

29,750

$

57,000

$

23,750

$

125,000

$

7,500

$

22,400

$

32,500

$

10,000

$ $

10,000 50,000

$

45,245

$

57,320

120,000

1,800

29,750

57,000

23,750

120,000 5,000

7,500

22,400

32,500

10,000

60,000

45,245

57,320

Harriet's Hats Journal Entries For the Year Ended December 31, 2016 Date

Account CLOSING ENTRIES

Debit

Sales Revenue Retained Earnings

$

Retained Earnings

$

984,000

$

$

984,000

$

6,225 561,680 53,500 5,300 45,245 18,850 127,500 22,400 57,320

$

10,000

898,020

Loss on Sale Cost of Goods Sold Rent Expense Interest Expense Bad Debts Expense Depreciation Expense Wages Expense Other Operating Expenses Income Tax Expense Retained Earnings Dividends

Credit

10,000

Harriet's Hats T-Accounts For the Year Ended December 31, 2016 $ $ $ $ $

Cash 53,000 721,000 $ 6,750 $ 120,000 $ 60,000 $ $ $ $ $ $ $

549,040 32,000 3,000 3,000 75,000 57,000 125,000 22,400 32,500 10,000

$ $

Accounts Receivable 223,000 984,000 $ 721,000 $ 21,050

$

$

51,810

$

$ $

Prepaid Rent 29,750 57,000 $ 29,750

$ $

Inventory 38,500 7,310

$ $

$

45,810

$

$ $

Accumulated Depreciation $ 155,975 $ 47,025 $ 1,425 $ 17,425

$

1,800

Common Stock $ 5,000 $ 10,000

$

$

127,800

Interest Payable $ 2,500 2,500 $ 1,800

$

464,950

$

46,495

Property, Plant, and Equipment 200,000 32,000 $ 60,000

23,750

33,250

$

Allowance for Doubtful Accounts $ 22,300 21,050 $ 45,245

15,000

Accounts Payable $ 54,000 549,040 $ 568,990

$

$

73,950

Income Taxes Payable $ 32,500 32,500 $ 57,320

$

65,000

Wages Payable $ 5,000 $

$

$

57,320

Additional Paid In Capital $ 15,000 $ 50,000

$

$

172,000

Notes Payable $ 75,000 $

$

$ $

Retained Earnings $ 898,020 $ 10,000

$

5,000 7,500

7,500

75,000 120,000

120,000 176,975 984,000

252,955

Harriet's Hats T-Accounts For the Year Ended December 31, 2016 Sales Revenue $ $

Rent Expense 29,750

$

23,750 $

$ $

$

$

-

$

$ $ $ 53,500

-

$

Depreciation Expense 1,425 17,425 $ 18,850

-

$ $

$

Gain/Loss on Sale of Equipment $

568,990

$ $

$

$

984,000

984,000

$

Cost of Goods Sold

Purchases

6,225 6,225

$

-

-

561,680

$

Interest Expense 500 3,000 1,800 $ 5,300 -

$

-

$

$

-

-

22,400 $

22,400

Dividends

$ $

45,245

Other Expenses

$

57,320

45,245 $

$

Wages Expense 120,000 7,500 $ 127,500

Bad Debts Expense

Income Tax Expense $

$

561,680

568,990

10,000

57,320

$

$

-

10,000

Harriet's Hats Income Statement For the Year Ended December 31, 2016 Sales $ 984,000 Less: Cost of Goods Sold 561,680 Gross Profit $ 422,320 Operating Expenses Rent Expense Interest Expense Bad Debts Expense Depreciation Expense Wages Expense Other Operating Expenses Total Operating Expenses

$

53,500 5,300 45,245 18,850 127,500 22,400 $ 272,795

Other gains and losses Loss on sale of equipment

$

Income before income taxes Income taxes Net Income

$ 143,300 57,320 $ 85,980

Basic Earning s Per Share

$

(6,225)

5.73

Harriet's Hats Statement of Retained Earnings For the Year Ended December 31, 2016 Beginnin g Retained Earnings $ 176,975 Plus: Net Income 85,980 Less: Dividends 10,000 Ending Retained Earnings $ 252,955

Harriet's Hats Balance Sheet As of December 31, 2016 Assets Cash Accounts Receivable Less: Allowance for Doubtful Accounts Net Accounts Receivable Prepaid Rent Inventory Total Current Assets Property, Plant, and Equipment Less: Accumulated Depreciation Net Property, Plant, and Equipment Total Assets Liabilities and Owner’s Equity Accounts Payable Wages Payable Interest Payable Income Taxes Payable Notes Payable Total Current Liabilities Common Stock (15,000 Shares Outstanding, $1 par) Additional Paid In Capital Retained Earnings Total Liabilities and Owner’s Equit y

$

51,810

$

418,455 33,250 45,810 549,325

$

44,200 593,525

464,950 (46,495)

172,000 (127,800)

$

$ $

73,950 7,500 1,800 57,320 120,000 260,570 15,000

65,000 252,955 $

593,525...