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.