Reference no: EM131737368

Problem - MRyan Co., purveyor of fine, fine things, had the following balances at December 31,2015

Cash	40,000
Accounts Receivable	60,000
Allowance for doubtful accts	1,000
Inventory	50,000 (1 thing)
Equipment	190,000
Accumulated Depreciation-Equipment	60,000
Land	50,000
Patent	20,000
Accounts Payable	40,000
Salary Payable	1,000
Rent Payable	2,000
Taxes Payable	3,000
Long Term Debt	80,000
Common Stock ($1 per share)	90,000
Retained Earnings	133,000

During 2016 the following transactions occurred:

Jan 1, received all beg A/R and paid all Beg A/P

Mar 1, bought 2 things for $60,000 each, (paid 25% down and the rest payable in   one year)

April 15, paid year 2015 taxes payable

May 1, sold one thing for $80,000 (paid 25% down and rest payable in one year)

July 1, company wrote off $600 in bad debts

July 1, sold one thing for $160,000 (received 75% down and the rest will be paid in one year)

Aug 1, purchased piece of equipment for $10,000 cash

Sept 1, exchanged  40,000 shares of common stock for piece of land worth $40,000.

Dec 1, declared and paid $.10 per share dividend

Dec 31, paid an annual payment on long term debt-$28,000. Of that amount, $8,000 was for interest and $20,000 was for principal

During the year the company paid 15 months' rent of $15,000. Also during the year the company paid salaries of $12,000 in cash, and at the end of the year they owned $3,000 for salaries, Depreciation for the year is $10,000. The long-term debt is payable in $20,000 principal  payments plus interest  of 10% each December 31. The tax rate us 30% and during the year the company paid 2015 taxes payable and the 50% of 2016 taxes. The company uses the FIFO inventory system. The company estimates the 2% of its receivables will ultimately be uncollectible. Journalize the above transactions and post them to T-Accounts. Prepare any necessary adjustments. Prepare a P&L, Statement of Owners Equity, Balance Sheet and Cash Flow Statement for the year 2016.