Reference no: EM131794823
Problem
[The following information applies to the questions displayed below]
The following post-closing trial balance was drawn from the accounts of Hardwood Timber Co. as of December 31. 2013:
|
Debit
|
Credit
|
Cash
|
$ 6.140
|
|
Accounts receivable
|
18.225
|
|
Allowance for doubtful accounts
|
|
$ 1.590
|
inventory
|
25.380
|
|
Accounts payable
|
|
8.645
|
Common stock
|
|
21.200
|
Retained earnings
|
|
18.310
|
Totals
|
$ 49.745
|
$49745
|
Transactions for 2014
1. Acquired an additional $10.600 cash from the Issue of common stock.
2. Purchased $59.200 of inventory on account.
3. Sold inventory that cost $61.200 for $96.600. Sales were made on account
4. Wrote off $1.040 of uncollectible accounts.
5. On September 1. Hardwood loaned $7.500 to Pine Co. The note had a 8 percent Interest rate and a one-year term.
6. Paid $16.120 cash for salaries expense.
7. Collected $86.380 cash from accounts receivable.
8. Paid 551.600 cash on accounts payable.
9. Paid a $4.800 cash dividend to the stockholders.
10. Estimated uncollectible accounts expense to be 1.50 percent of sales on account.
11. Recorded the accrued interest at December 31. 2014.