Business, 05.05.2020 01:28 iwannabewinston
Kelley Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.
KELLEY CORPORATION
Comparative Balance Sheets
December 31, 2017 and 2016
2017 2016
Assets
Cash $ 335,000 $ 216,000
Accounts receivable 118,000 101,000
Inventory 624,000 546,000
Total current assets 1,077,000 863,000
Equipment 378,000 329,000
Accum. depreciation—Equipment (178,000 ) (114,000 )
Total assets $ 1,277,000 $ 1,078,000
Liabilities and Equity
Accounts payable $ 111,000 $ 91,000
Income taxes payable 30,000 27,000
Total current liabilities 141,000 118,000
Equity
Common stock, $2 par value 712,000 668,000
Paid-in capital in excess of par value, common stock 253,000 187,000
Retained earnings 171,000 105,000
Total liabilities and equity $ 1,277,000 $ 1,078,000
KELLEY CORPORATION
Income Statement
For Year Ended December 31, 2017
Sales $ 2,185,000
Cost of goods sold 1,324,000
Gross profit 861,000
Operating expenses
Depreciation expense $ 64,000
Other expenses 602,000 666,000
Income before taxes 195,000
Income taxes expense 59,690
Net income $ 135,310
Additional Information on Year 2017 Transactions
Purchased equipment for $49,000 cash.
Issued 22,000 shares of common stock for $5 cash per share.
Declared and paid $69,310 in cash dividends.
Answers: 3
Business, 21.06.2019 17:30
Following are the transactions for valdez services. the company paid $2,000 cash for payment on a 6-month-old account payable for office supplies. the company paid $1,200 cash for the just completed two-week salary of the receptionist. the company paid $39,000 cash for equipment purchased. the company paid $800 cash for this month’s utilities. the company paid $4,500 cash in dividends to the owner (sole shareholder). examine the above transactions and identify those that create expenses for valdez services. prepare general journal entries to record those transactions that created expenses in the above given order.
Answers: 2
Business, 22.06.2019 02:00
What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond
Answers: 1
Business, 22.06.2019 09:00
Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit
Answers: 1
Business, 22.06.2019 16:00
Arnold rossiter is a 40-year-old employee of the barrington company who will retire at age 60 and expects to live to age 75. the firm has promised a retirement income of $20,000 at the end of each year following retirement until death. the firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. what is barrington's annual pension contribution to the nearest dollar for mr. rossiter? (assume certainty and end-of-year cash flows.)
Answers: 2
Kelley Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales ar...
Mathematics, 29.06.2019 17:10
Mathematics, 29.06.2019 17:10
Mathematics, 29.06.2019 17:10
Physics, 29.06.2019 17:10