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The comparative balance sheets and an income statement for Wang Beauty Products, Inc., are shown below.
1. Purchased land for $112,000.
2. Purchased new equipment for$100,000.
3. Sold old equipment that cost $132,000 with accumulated depreciation of$112,000 for $20,000 cash.
4. Issued common stock for$50,000.
Prepare the statement of cash flows for 2017 using the indirect method.
Journals and selected accounts payable, accounts receivable, and general ledger accounts for Innovative Solutions are given in the Working Papers.
- Journalize the following transactions during December of the current year. Use page 12 of a general journal, page 12 of a sales journal, page 12 of a purchases journal, page 12 of a cash receipts journal, and page 15 of a cash payments journal. The company offers sales terms of 2/10, n/30. The sales tax rate is 6%. Post the following transactions when journalized: (a) transactions impacting the accounts receivable or accounts payable subsidiary ledgers, (b) transactions recorded in the general journal, and (c) cash payments entered in a general amount column of the cash payments journal. Source documents are abbreviated as follows: check, C; memorandum, M; purchase invoice, P; receipt, R; sales invoice, S; terminal summary, TS; debit memorandum, DM; credit memorandum, CM.
Dec. 1. Sold merchandise on account to Larry Simpson, $4,780.00, plus sales tax. S395.
2. Paid cash to Perkins Properties for rent,$800.00. C518.
3. The board of directors declared a dividend of $0.20 per share; capital stock issued is 20,000 shares. M68.
4. Received cash on account from Coastal County Schools,$814.80, less 2% sales discount. R289.
5. Paid cash to Ulman Paper for office supplies, $169.00. C519.
6. Paid cash on account to Jing Corporation for$2,618.00, less 2% discount. C520.
7. Purchased merchandise on account from Wilson Metals, $9,000.00, less a 60% trade discount. P315.
8. Bought office supplies on account from Barger Office Supply,$148.00. M69.\