ALL homework assignments must be completed by using some type of computer software program, e.g., word.
CREDIT WILL BE GIVEN FOR LATE HOMEWORK.
When completing your homework assignments, DO NOT
use abbreviations, e.g., spell out Accounts Payable instead of simply writing AP.
As discussed during class, you can
work on these homework assignments in groups or as an individual.
Pederson Service Company’s balance sheet as of 12-31-09 is presented below:
Property, plant, and equipment – at cost
Accrued property taxes payable
Common stock and additional paid-in-capital
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
During the year ended 12-31-10, Pederson entered into the following events/transactions:
Borrowed an additional $1,500,000 on a long-term basis.
Purchased on account $250,000 of office furniture (property, plant, and equipment).
Performed $800,000 of services for customers on an account basis.
Performed $200,000 of services for customers on a cash basis.
Incurred and paid wage expenses of $333,000.
Paid off its outstanding accrued property taxes payable.
Used up the prepaid insurance.
Collected $950,000 of accounts receivable.
Recorded $42,000 of depreciation expense.
Incurred and paid $40,000 of interest expense.
Journalize the events/transactions describe in items a) through j).
When you make the journal entries, make sure
that you identify each account you debit and credit as EITHER an asset, a liability, an equity, a revenue, OR an expense
In addition, prepare an income statement for the year ended 12-31-10 AND a balance sheet as of 12-31-10.
Assume a 0% income tax rate.