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question archive The following balances are Suzie and Jarrett’s Nugget Co

The following balances are Suzie and Jarrett’s Nugget Co

Subject:AccountingPrice: Bought3

The following balances are Suzie and Jarrett’s Nugget Co., as of December 31, 2015:Cash87,000Accounts Receivable40,000Inventory80,000(4Nuggets)Prepaid Rent4,000Equipment200,000Accumulated Depreciation60,000Security Deposit10,000Account Payable70,000Wages Payable5,000Interest Payable5,000Taxes Payable8,000Bond Payable100,000Common Stocks ($1 par)6,000Paid in Capital54,000Retained Earning111,000For 2016:Received all beginning accounts receivable and paid all beginning accounts payable.Bought four Nuggets at $25,000 each, 20% down, rest next year.Sold five Nuggets, $60,000 each, 60% down, 40% next year.Paid cash wages of $50,000 and at the end of the year owed employees $2,000.Paid utilities of $12,000 and advertising of $10,000.On June 30th, they paid the annual payment of $10,000 principal plus interest on the Note Payable. The note was taken out on June 30th of the previous year. (Can you figure out the Interest rate?)On August 1, purchased a new wagon for delivery of the Nuggets for $20,000.On December 1, they declared and paid a dividend of $5,000.During the year they paid $16,000 in rent (rent is $2,000 per month)During the year, the company sold a piece of equipment that originally cost $5,000 and had accumulated depreciation at the date of the sale of $2,000. They sold the bike for a loss of $1,000.The company uses the FIFO inventory flow assumption.The depreciation for the year was $50,000.The tax rate is 30%. During the year the company paid all of last year’s taxes and 50% of 2016 taxes.PREPARE FINANCIAL STATEMENTS


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