Dr. Supplies Expense 737,000
Cr. Supplies 737,000
At the beginning of the year you had 467,000, plus the 750,000 of purchases, less what you have at then end of the year 480,000.
Dr. AFDA 75,000
Cr. AR 75,000
That leaves a debit balance of 25,000 in your AFDA though.
Dr. Bad Debt Expense 25,000
Cr. AFDA 25,000
Fixed Assets 850,000 / 10 = 85,000
Only include Fixed Assets, NOT inventory
Dr. Amortization Expense 85,000
Cr. Accumulated Amortization 85,000
Dr. Insurance Expense 20,000
Cr. Prepaid Insurance 20,000
60,000 x 1 / 3 = 20,000
Dr. Interest Expense 50,000
Cr. Cash 50,000
500,000 x .1 = 50,000
If they are to have paid it on Dec. 31, would it not be cash? Although assuming interest payable is fine as well.
6.the company's tax rate is 35%.All income tax charges are recorded at the end of the year.
You have to calculate your company's net income for the year. Then take 35 of that amount as tax.
7. $200,000 shares of common stock were outstanding during 2006.
That's nice, really you only need this for when you calculate EPS.
Where did 8 and 9 come from?