Extra Credit 3 - Due in TA 4th floor mailbox Saturday May 14 at 10pm. CIlkonCorp

Question

Extra Credit 3 - Due in TA 4th floor mailbox Saturday May 14 at 10pm. CIlkonCorpoion 3n3115 orekeonik orporation 9 heet at 12 31/15 is presented below. Citikonk Corporation Merchandise Inventory Prepaid Insurance Equipment Accumualed depreciation $16,500 21,300 1,400 110,000 Accounts payable Common stock (S1 par) Paid in capital in excess of par Retained eanings $ 22,530 8,000 64,000 During 2016, the following transactions occurred: 1. Purchased $123,600 inventory on account. Perpetual is used. 2. Sales made on account to customers for S 180,000 plus 5.5% sales tax. Cost of sales were S 111,300. 3. Received $10,000 cash down payment for orders to be shipped next year. 4. Issued 10 year, $40,000 face, 8% bonds on 7/2/16 at 103. The bonds pay interest every 1/1 and 7/1 5. Collected $160,000 on account. 6. Paid other operating expenses of $27,500 7. Paid $121,030 on account. 8. Paid $8,000 to the state for some of the sales tax collected from customers. 9. On 1/1/16 sold equipment which cost $20,000 with accumulated depreciation of $8,500 for $4,000 cash. 10. Issued 1,100 shares of $100 par 8% preferred stock for $160,000 cash. 11. Purchased equipment on 7/1/16 for $80,000 for cash. 12. Purchased 400 shares of Citikonk common stock from a disgruntled shareholder for $40 per share 13. Recorded wages and payroll taxes. Gross wages were $20,000, FICA tax was withheld at a 7.55% rate. federal income taxes (FIT) of $2,000 were withheld, state income taxes (SIT) of $500 were withheld The Federal unemployment tax (FUTA) rate is 0.9% and the state unemployment (SUTA) rate is 3.5%. The net wage checks were given immediately to employees. The payroll taxes will be paid to the IRS and state in early January. Requirement A: i - Journalize 1 13 above ii - Post to the ledger ii Prepare an unadjusted trial balance which will be used as the first 2 columns of a worksheet. (See Requirement B.) *Four Optional solution templates have been prepared to assist you. They can be accessed by clicking on the Solution tabs below. Use of Microsoft Excel is optional. Hand prepared solutions are also acceptable

Explanation / Answer

Requirement A Journal Entries in the books of Citikonk Corporation in $ in $ No. Particulars Debit Credit 1. Inventory Account Debit 123,600.00 Accounts Payable Credit 123,600.00 Being Inventory purchased. 2. Accounts Receivable Debit 189,900.00 Sales tax Payable Credit 9,900.00 Revenue Credit 180,000.00 Being Sales made on account. Cost of Goods Sold Debit 111,300.00 Inventory Credit 111,300.00 Being Cost of Goods Sold recorded. 3. Cash Debit 10,000.00 Unearned Revenue Credit 10,000.00 Being cash received for the services to be provided. 4. Cash Debit 40,000.00 Premium on BondsPayable Debit 1,200.00 Bonds Payable Credit 41,200.00 Being 10 Year bonds issued at premium. 5. Cash 10,000.00 Accounts Receivable Debit 10,000.00 Being Cash collected on Account. Credit 6. Operating Expenses payable Debit 27,500.00 Cash Credit 27,500.00 Being Operating expenses paid. 7. Accounts Payable Debit 121,030.00 Cash Credit 121,030.00 Being cash paid on account. 8. Sales Tax Payable Debit 8,000.00 Cash Credit 8,000.00 Being Sales tax paid to Government. 9. Cash Debit 4,000.00 Accumulated Depreciation Debit 8,500.00 Loss on Sale of Equipment Debit 7,500.00 Equipment Credit 20,000.00 Being Equipment sold on loss. 10. Cash 160,000.00 Premium on Preferred Stock 50,000.00 8% Preferred Stock 110,000.00 Being 8% preferred stock issued on premium. 11. Equipment 80,000.00 Cash 80,000.00 Being Equipment purchased for Cash.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.