No pre 1989 bad debt reserve remained on rals books

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Unformatted text preview: sources: U.S. Treasury notes Municipal bonds Total interest 18,000 98,000 $ 3,000 2,200 5,200 Dividends arose from the following sources: Taxable domestic corporation Clove Corp. Ramo Corp. Sol Corp. (stock sold 1/10/94) Real Estate Investment Trust Mutual Fund Corp. (capital gains dividends only) Money Market Fund (invests only in interest-paying securities) Total dividends Date stock acquired 7-1-87 9-1-89 12-1-93 6-1-92 % owned by Ral 30.0 10.0 5.0 1.0 $ 7,000 6,000 1,000 2,700 4-1-91 0.1 400 3-1-90 0.1 2,100 $ 19,200 Operating expenses include the following: • Bonus of $5,000 paid to Ral's sales manager on January 31, 1994. This bonus was based on a percentage of Ral's 1993 sales and was computed on January 25, 1994, under a formula in effect in 1993. • Estimate of $10,000 for bad debts. Actual bad debts for the year amounted to $8,000. No pre-1989 bad debt reserve remained on Ral's books since January 1, 1989. • Keyman life insurance premiums of $4,000. Ral is the beneficiary of the p...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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