CAPTAIN JET INC. BALANCE SHEET DECEMBER 31, 2013 Current Assets Cash 41,200 Note
ID: 2429945 • Letter: C
Question
CAPTAIN JET INC.
BALANCE SHEET
DECEMBER 31, 2013
Current Assets
Cash 41,200
Notes Receivable 16,000
Accounts Receivable 41,800
Less: Allowance for Doubtful Accounts (3,000)
Inventories 40,000
Prepaid Insurance 540
Prepaid Rent 500
Total Current Assets 137,040
Non-Current Assets
Long-term Investments
Investments in held-for-maturity securities 51,000
Land held for future development 45,500
Property, Plant, and Equipment
Land 85,000
Buildings 675,000
Less: Accumulated Depreciation (187,500)
Intangible Assets
Capitalized Development Costs 8,000
Goodwill 76,000
Other Identifiable Intangible Assets 48,000
Total Non-Current Assets 801,000
Total Assets 938,040
Current Liabilities
Notes Payable 110,000
Accounts Payable 33,500
Unearned Revenues 12,000
Income Taxes Payable 8,440
Property Taxes Payable 6,600
Interest Payable 1,500
Total Current Liabilities 172,040
Non-Current Liabilities
Provisions Related to Pensions 84,000
Bonds Payable 300,000
Total Non-Current Liabilities 384,000
Total Liabilities 556,040
Stockholders' Equity
Common Stock 100,000
Preferred Stock 100,000
Paid-in-capital - Common Stock 27,500
Paid-in-capital - Preferred Stock 10,000
Retained Earnings 152,250
Accumulated Other Comprehensive Income 5,000
Less: Treasury Stock (12,750)
Total Stockholders' Equity 382,000
Total Liabilities and Stockholders' Equity 938,040
TRIAL BALANCE SHEET
Debit Credit
Cash
Notes Receivable
Accounts Receivable
Allowance for Doubtful Accounts
Inventories
Prepaid Insurance
Prepaid Rent
Investments in held-for-maturity securities
Land held for future development
Land
Buildings
Accumulated Depreciation
Capitalized Development Costs
Goodwill
Other Identifiable Intangible Assets
Salary and Wages Payable
Interest Payable
Accounts Payable
Utilities Payable
Income Tax Payable
Property Tax Payable
Notes Payable
Unearned Revenues
Provisions Related to Pensions
Bonds Payable
Common Stock
Preferred Stock
Paid-in-capital - Common Stock
Paid-in-capital - Preferred Stock
Retained Earnings
Accumulated Other Comprehensive Income
Treasury Stock
Sales Revenue
Cash Dividends
Utilities Expenses
Sales Return
Sales Discount
Interest Expenses
Salary and Wages Expenses
Supplies Expenses
Rent Expenses
Depreciation Expenses
Income Tax Expenses
Cost of Goods Sold
Bad Debt Expenses
Total *Please make sure your total debits equal your total credits
The 2013 balance sheet of the Captain Jet Inc. is attached. During 2014, the following events occurred. 1. On January 10, sell merchandise on account to Rayms $9,600 and Fischer $8,800. Terms 2/10, n/30. Freight $100 for each sale, F.O.B. shipping point. 2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 1/10, n/30. Freight $120 for each sale, F.O.B. destination. 3. Receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account after discount period has lapsed. 4. On January 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount. 5. On January 16, issue credit of $400 to Fieber for merchandise returned. 6. Summary daily cash sales total $15,500. 7. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12. 8. On Feburary 9, receive payment in full from Rayms and Fischer. 9. On March 1, pay rent of $6,000 for a two-year term. 10. On April 1, sell merchandise on account to Dunlap $1,600, term 2/10, n/30. Freight $80, F.O.B. shipping point. 11. Pay $400 cash for office supplies. 12. Cash dividends totaling $800 are declared on June 13 and paid to stockholders on June 23. 13. Issue a note of $120,000 to bank (one year, annual interest rate 3%) for cash. 14. On July 5, purchase merchandise from Maida $33,000, terms 3/10, n/30. 15. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000. 16. On July 8, return $200 of merchandise to Maida and receive credit. 17. On August 1, sell merchandise to Lachey on account $80,000, term 1/10, n/30. Freight $1,500, F.O.B. shipping point. 18. Pay off the balance to Maida on August 4. 19. On August 10, receive half of the payment from Lachey. 20. On August 14, write off $1,300 bad debt for one account, Tooket. 21. Pay utitlities expense, $10,902. 22. On August 31, Lachey pays off its balance. 23. On September 1, pay cash $7,500 to Farmington for merchandise purchased last year. 24. On October 1, pay off notes payable $110,000 and associated accrued interest $6,000, of which $1,500 was shown on the balance sheet. 25. Over the year, sales and office employees earned $45,500 in salaries and wages, of which $1,500 was still payable at the end of year. 26. An unpaid utilities bill (December, $1,250) is due on January 10 next year. Additional Information at the end of the year: 1. Depreciation expense for the year was $14,250. 2. The company estimated that it has to pay federal income tax, $3,250. 3. After physically counting, the company decided that the ending inventories worth $40,146. 4. Based on its historical data, the company estimated that the bad debts were about 1% of net credit sales. 5. Unearned revenue is decreased by $10,000. 6. The company expenses all of the supplies purchased during the year. 7. No insurance policy is effective during the year. 8. The company used the gross method to record its purchases and sales on credit. 9. The company adopts the periodic inventory system. Instructions: 1. Prepare journal entries for each event. (6 pts) 2. Prepare adjusting entries. (3 pts) 3. Prepare adjusted trial balance. (3 pts)Explanation / Answer
Answer;-
Advantage of Sachet take Discount on payment of August 10, but not take advantage of Discount on payment of September. 1
Journal entries
Date
account titles
debit
Credit
Aug 1
Account Receivable
$80,000
Sales
$80,000
(To record sales)
Aug 10
Cash
$39,600
Sales discount (40000×1%)
$400
Account Receivable
$40,000
(To record the payment received)
Sep 1
Cash
$40,000
Account Receivable
$40,000
FOB shipping point: cost will be paid by buyer.
Date
account titles
debit
Credit
Aug 1
Account Receivable
$80,000
Sales
$80,000
(To record sales)
Aug 10
Cash
$39,600
Sales discount (40000×1%)
$400
Account Receivable
$40,000
(To record the payment received)
Sep 1
Cash
$40,000
Account Receivable
$40,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.