Sinthu 2626
Mar 13, 2009, 12:30 PM
5 Issued 2,100, $4.00 preferred shares in exchange for a truck. The shares are valued at $19.50 per share. The truck is expected to have a 250,000 km life, a residual value of $4,000, and is amortized using units of production.
5 Received an office building in exchange for 25,000 common shares. The shares are trading at $15.20. The building has a 40 year life with no residual value and is amortized using the straight line method. The appraised value of the building was $315,000.
6 Purchased $550,000 of inventory, paying half in cash and half on account. Fortune uses
a perpetual inventory system.
31 Sales for the month were $450,000, 90% of sales were on account. Gross margin is 45% of sales.
31 Paid salaries for the month, $30,000, accrued salaries $1500.
Nov. 1 Issued $200,000 of 6%, 10-year bonds payable with semi-annual interest payments on May 1, and Nov. 1. At the date of issue the interest rate is 8%. Bonds are amortized using the effective interest rate method.
2 Paid $500,000 on account.
8 Purchased $575,000 of inventory, paying $360,000 cash and the remainder on account.
15 Collected half of all the accounts receivable.
20 Repurchased 10,000 Fortune common shares at $13 per share. Assume that the repurchased shares are from the October 1 issue, and that the shares are canceled after the repurchase.
30 Sales for the month were $590,000, 85% of sales were on account. Gross margin is 45% of sales.
30 Paid $31,500 for salaries, accrued salaries in the amount of$1,750.
Dec. 12 Collected 75% of accounts receivable.
13 Paid 65% of the accounts payable balance.
. 30 Sold merchandise for $750,000, 80% of this was on account. Gross margin is 45% of sales. Fortune uses a perpetual inventory system.
30 Paid salaries $31,750, accrued salaries in the amount of $1750.
30 Operating expenses for the quarter were $405,000 and were paid in cash.
30 Repurchased 12,500 Fortune’s common shares at $16.75 per share. Assume that the repurchased shares are from the October 1 issue, and that the shares are canceled after the repurchase.
30 Fortune had found that the truck acquired on October 5 was too small. At this point it had been driven for 23,000 km. They acquired a new truck with a list price of $65,000 and were given a trade in allowance of $32,000 for the old truck with the difference to be paid in cash. The fair value of the old truck had been determined to be $35,000. The new truck is expected to have a useful life of 300,000 km, a residual value of $8,000 and will be amortized using units of production method.
31 Aging of Accounts Receivable estimated that $36,000 were at risk of not being collected.
31 Income tax is calculated at a tax rate of 35%. Income taxes that must be paid to the CRA amount to $80,000.
31 Declared a quarterly cash dividend of $10,000. Record date is January 10, with payment scheduled for January 2
5 Received an office building in exchange for 25,000 common shares. The shares are trading at $15.20. The building has a 40 year life with no residual value and is amortized using the straight line method. The appraised value of the building was $315,000.
6 Purchased $550,000 of inventory, paying half in cash and half on account. Fortune uses
a perpetual inventory system.
31 Sales for the month were $450,000, 90% of sales were on account. Gross margin is 45% of sales.
31 Paid salaries for the month, $30,000, accrued salaries $1500.
Nov. 1 Issued $200,000 of 6%, 10-year bonds payable with semi-annual interest payments on May 1, and Nov. 1. At the date of issue the interest rate is 8%. Bonds are amortized using the effective interest rate method.
2 Paid $500,000 on account.
8 Purchased $575,000 of inventory, paying $360,000 cash and the remainder on account.
15 Collected half of all the accounts receivable.
20 Repurchased 10,000 Fortune common shares at $13 per share. Assume that the repurchased shares are from the October 1 issue, and that the shares are canceled after the repurchase.
30 Sales for the month were $590,000, 85% of sales were on account. Gross margin is 45% of sales.
30 Paid $31,500 for salaries, accrued salaries in the amount of$1,750.
Dec. 12 Collected 75% of accounts receivable.
13 Paid 65% of the accounts payable balance.
. 30 Sold merchandise for $750,000, 80% of this was on account. Gross margin is 45% of sales. Fortune uses a perpetual inventory system.
30 Paid salaries $31,750, accrued salaries in the amount of $1750.
30 Operating expenses for the quarter were $405,000 and were paid in cash.
30 Repurchased 12,500 Fortune’s common shares at $16.75 per share. Assume that the repurchased shares are from the October 1 issue, and that the shares are canceled after the repurchase.
30 Fortune had found that the truck acquired on October 5 was too small. At this point it had been driven for 23,000 km. They acquired a new truck with a list price of $65,000 and were given a trade in allowance of $32,000 for the old truck with the difference to be paid in cash. The fair value of the old truck had been determined to be $35,000. The new truck is expected to have a useful life of 300,000 km, a residual value of $8,000 and will be amortized using units of production method.
31 Aging of Accounts Receivable estimated that $36,000 were at risk of not being collected.
31 Income tax is calculated at a tax rate of 35%. Income taxes that must be paid to the CRA amount to $80,000.
31 Declared a quarterly cash dividend of $10,000. Record date is January 10, with payment scheduled for January 2