Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales. The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020. SOLAR SOLUTIONS Adjusted Trial Balance 12/31/2020 2020 2019 Account Title Adjusted Trial Balance Debit Post-Closing Trial Balance $ 125,600 Credit Debit Credit 35,000 |Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment 122,200 125,600 6,000 55,000 35,000 6,000 15,600 47,000 21,000 5,000 46,000 15,600 63,000 59,000 (16,000) $ 234,200 47,000 Machinery & Tools Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable 21,000 21,000 16,000 16,800 11,200 2,600 2,700 2,000 4,000 Note Payable-Long Term Common Stock, $10 par Retained Earnings Dividends Sales Revenue |Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Advertising Expense Depreciation Expense Interest Expense 31,000 240,000 28,600 22,100 160,000 28,600 10,000 235,000 127,600 20,000 36,000 11,800 6,000 5,000 1,800 Income Tax Expense 3,000 $ 571,400 $ 571,400 $ 250,200 250,200 Transaction Data for 2020 (Note, these transactions were included in the trial balance numbers above.) 6,000 Cash paid for purchase of office equipment Cash paid for purchase of tools Acquisition of Machinery with Notes Payable-Long-term 10,000 38,000 Payment on Long Term Debt Cash payment of dividends 10,000 Cash receipt from issuance of 10,000 shares of common stock 80,000
Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales. The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020. SOLAR SOLUTIONS Adjusted Trial Balance 12/31/2020 2020 2019 Account Title Adjusted Trial Balance Debit Post-Closing Trial Balance $ 125,600 Credit Debit Credit 35,000 |Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment 122,200 125,600 6,000 55,000 35,000 6,000 15,600 47,000 21,000 5,000 46,000 15,600 63,000 59,000 (16,000) $ 234,200 47,000 Machinery & Tools Accumulated Depreciation Accounts Payable Salaries Payable Sales Tax Payable 21,000 21,000 16,000 16,800 11,200 2,600 2,700 2,000 4,000 Note Payable-Long Term Common Stock, $10 par Retained Earnings Dividends Sales Revenue |Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Advertising Expense Depreciation Expense Interest Expense 31,000 240,000 28,600 22,100 160,000 28,600 10,000 235,000 127,600 20,000 36,000 11,800 6,000 5,000 1,800 Income Tax Expense 3,000 $ 571,400 $ 571,400 $ 250,200 250,200 Transaction Data for 2020 (Note, these transactions were included in the trial balance numbers above.) 6,000 Cash paid for purchase of office equipment Cash paid for purchase of tools Acquisition of Machinery with Notes Payable-Long-term 10,000 38,000 Payment on Long Term Debt Cash payment of dividends 10,000 Cash receipt from issuance of 10,000 shares of common stock 80,000
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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