purchased 129 500 inventory on account rudolf konknosed reindeer inc uses the perpet 244429

1. Purchased $129,500 inventory on account. Rudolf Konknosed Reindeer Inc. uses the perpetual method for valuing inventory. 2. $200,000 in sales, plus 5.6% sales tax, were made to customers on account. Cost of the goods sold were $115,600. 3. Received $13,000 cash down payment for orders that will be shipped next year. 4. Issued 10 year, $40,000 face value, 8% bonds on 7/1/11 at 106. The bonds pay interest every 1/1 and 7/1. 5. Collected $155,000 on account. 6. Paid other operating expenses of $28,700. 7. Paid $121,030 on account. 8. Paid $10,000 to the state for a portion of the sales tax collected from customers. 9. On 1/1/12 sold equipment with an original cost of $25,000 for $5,000 cash. The equipment’s accumulated depreciation is $8,500. 10. Issued 1,200 shares of $125 par 8% preferred stock for $180,000 cash. 11. Purchased equipment on 7/1/12 for $95,000 cash. 12. Purchased 500 shares of Rudolf Konknosed Reindeer Inc. common stock from a disgruntled shareholder for $35 per share. 13. Recorded wage and payroll taxes. Employee gross wages were $40,000, FICA tax was withheld at a 7.65% rate, federal income taxes (FIT) of $1,800 were withheld, and state income taxes (SIT) of $600 were withheld. Additionally, the Federal unemployment tax (FUTA) rate is 0.9% and the state unemployment (SUTA) rate is 3.5%. The net wage checks were cut and immediately given to employees. The payroll taxes are not due to be remitted until after year end. Requirement A: i – Journalize 1 – 13 above ii – Post to the ledger iii – 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 tabs below. Use of Microsoft Excel is optional. Hand prepared solutions are also acceptable.

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12/31/2011 12400 23600 21800 10000 1800 60000 150000 50400 -42000 144000 144000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 960 -960 -960 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 960 960 960 960 960 0 0 960 0 -960 0 960 960 960 960 0 0 0 0 0 0 0 0 0 Balance Sheet Cash Accounts payable Retained earnings Accounts Receivable Accounts Payable Common Stock Retained Earnings Equipment Accumulated depreciation CASH DR CR BALANCE Beginning ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE COMMON STOCK RETAINED EARNINGS UNEARNED REVENUE EQUIPMENT OPERATING EXPENSES item 2 item 3 item 4 item 5 item 6 item 7 item 9 item 1 item 8 item 11 item 10 Merchandise Inventory Prepaid Insurance Common stock ($1 par) Paid in capital in excess of par (See Requirement B.) Extra Credit 3- SOLUTION Sales Tax Payable Unearned Revenue Bonds Payable Operating Expenses Preferred Stock MERCHANDISE INVENTORY COST OF GOODS SOLD SALES TAX PAYABLE BONDS PAYABLE ACCUMULATED DEPRECIATION SALES PAID IN CAPITAL IN EXCESS OF PAR G E N E R A L L E D G E R Page 2 G E N E R A L L E D G E R Page 1 Work Sheet Paid in Capital in Excess of Par Cost of Goods Sold Sales PREPAID INSURANCE Unadjusted Trial Balance Account Title Adjustments Adjusted Income Statement Balance Sheet Additional accounts: Depreciation Expense a Interest Expense Interest payable b Insurance Expense c Totals Statement of Cash Flows Net Cash From Operations Net Cash From Investing Net Cash From Financing CASH FROM INVESTNG ACTIVITIES: CASH FROM FINANCING ACTIVITIES: CASH FROM OPERATING ACTIVITIES: NET INCREASE IN CASH Cash at beginning…

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