TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Fran
ID: 2608832 • Letter: T
Question
TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Francisco Giants baseball player. The company was formed in 2015. The post-closing trial balance of that company for the end of operations in that first year is:
TimmyL Baseball Card Co.
Trial Balance
December 31, 2015
Account Debit Credit
Cash $250,000
Accounts Receivable 80,000
Allowance for Bad Debts $ 8,000
Inventory 600,000
Supplies 10,000
Prepaid Advertising 9,000
Land 200,000
Building 500,000
Accumulated Depreciation-B. 8,000
Patent 95,000
Accounts Payable 100,000
Dividends Payable 30,000
Income Tax Payable 75,000
Interest Payable 3,000
Salaries Payable 20,000
Notes Payable 120,000
Common Stock ($10 par value) 100,000
Paid in Capital in Excess of Par 900,000
Retained Earnings 380,000
Total $1,744,000 $1,744,000
1/5 Paid the salaries due from the previous year.
1/30 The beginning inventory of 2016 consists of 10,000 baseball cards at a cost of $60 each. TimmyL sold 5,000 of these cards, on account, at a price of $200 each. TimmyL uses a perpetual inventory system and uses FIFO as a cost flow assumption.
2/1 Paid our suppliers the entire amount owed on the trade accounts payable from the previous year.
2/15 Collected $900,000 in accounts receivable from customers.
3/1 Paid shareholders the dividend declared in 2015.
3/31 Paid the Notes Payable plus all accrued interest. The Notes Payable account consists of a $120,000, 10 percent, 6 month obligation from the bank on 10/1/15.
4/1 Incurred and paid the utilities bill of $10,000.
4/15 Paid the government the taxes due from 2015.
5/1 Purchased on account 3,000 new baseball cards at a cost of $70 each.
5/15 Paid $200,000 of the amount owed on trade accounts payable.
6/1 Purchased $15,000 in supplies for cash and debited a permanent (real) account [instead of a temporary (nominal) account].
6/15 One customer owing $10,000 was declared bankrupt. TimmyL wrote off this account as uncollectable.
7/1 Purchased online advertising for one year at a cost of $2,000 per month for cash and debited a temporary (nominal) account [instead of a real (permanent) account].
7/5 Sold 5,000 new shares of common stock at a market price of $150 per share.
8/1 Lent the CEO of TimmyL $200,000 and accepted an eight month, eight percent note receivable.
8/15 Paid $50,000 salaries.
8/31 Sold 5,000 baseball cards on account at a price of $250 per card.
9/1 Purchased a computer system for $70,000 by making a $10,000 down payment and issuing a six month six per cent note for the balance.
9/15 Sold a quarter of the land owned by TimmyL for a cash price of $300,000.
10/1 Received $1,200,000 due from customers.
11/1 Received $100,000 in advance from a customer for the future sale of an extra special baseball card that TimmyL will acquire in 2017. TimmyL credited a permanent (real) account [instead of a temporary (nominal) account].
12/15 Declared an annual cash dividend of $5 per common share to shareholders payable in ninety days.
Accounting Cycle : Prepare an unadjusted trial balance at fiscal year end 2016.
Explanation / Answer
Working
Trial Balance After Adjustment Account Debit Credit Cash 2,393,000 Accounts Receivable 140,000 Allowance for Bad Debts - 8,000 Inventory 840,000 Supplies 25,000 Prepaid Advertising 21,000 Advertising 12,000 Land 150,000 Building 500,000 Accumulated Depreciation-B. 8,000 Patent 95,000 Accounts Payable 10,000 Dividends Payable 75,000 Income Tax Payable - Interest Payable 1,500 Salaries Payable - Notes Payable 60,000 Common Stock ($10 par value) 150,000 Paid in Capital in Excess of Par 1,600,000 Retained Earnings 380,000 Cost of Good Sold 300,000 Utilities 10,000 Interest Income Receivable 6,667 Interest Income 6,667 Bad Debts 10,000 Notes Receivable 200,000 Salaries 50,000 Computers 70,000 Interest Expenses 1,500 Advance from Customers 100,000 Gain on sale of Land 250,000 Dividends 75,000 Sales 2,250,000 4,899,167 4,899,167Related Questions
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