HWK__3 - the purchase price g Borrowed $50,000 from the...

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HOMEWORK #3 DUE JAN. 28 6 points Green & White Corporation has been operating for ten years. The December 31, 2009 account balances are: Cash………………. . $ 40,000 Other assets (non-current). $ 10,000 Accounts receivable. . 25,000 Accounts payable……… 45,000 Inventory …………. . 20,000 Notes Payable-short-term 20,000 Prepaid Expenses … 15,000 Notes Payable -long-term 90,000 Equipment…………. 70,000 Contributed Capital …… 80,000 Factory Building…… 120,000 Retained Earnings ……. 65,000 During the year 2010, the company had the following activities: a. Paid $20,000 due on short-term notes that matured. b. Issue an additional 5,000 shares of stock for $40,000 cash. c. Collected $8,000 of outstanding accounts receivable. d. Purchased additional inventory of $10,000, paying $5,000 cash and the remainder on account. e. Paid off the outstanding accounts payable from part d) f. Bought a new building to expand operations for $75,000; signed a three-year note for
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Unformatted text preview: the purchase price. g. Borrowed $50,000 from the bank during December. The note matures in November of 2011. h. Completed negotiations to purchase additional equipment in 2011. The purchase price is expected to be $22,500. INSTRUCTIONS: A. Prepare journal entries for each transaction (list letter, then the accounts and amounts debited and credited- in good form) For example: Acquired Equipment for cash of $10,000. (do not enter this) Example: Equipment +A 10,000 Cash -A 10,000 a. ??????? ?????? etc. B. Create T accounts for each account, put in the beginning balances given above on the correct debit or credit side of the account. C. Post the effects of the transactions for 2010 to the T accounts affected. (Like example on Exhibit 2-7, P. 65 in textbook) D. Prepared a classified balance sheet. (see page 70 in textbook)...
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