Reference no: EM132318459

Please use the endingbalances from 20X2 as the beginning balances in 20X3.

Miller Corporation - Year 20X3
During the year, you paid the amounts owed for Motorcycles at the end of year 20X2 and collected all the amounts owed by customers for 20X2. You purchased 25 more Motorcycles for $6,000 each and at the same terms as in 20X2. During the year, you sold 22 Motorcycles for $11,000 each at the sameterms as 20X2. You paid the money owed to suppliers (Accounts Payable) at the beginning of the year and collected all money due you at the beginning of the year (Accounts Receivable).You use the FIFO inventory system.

On January 1, 20X3, you purchased furniture and fixtures for $55,000. You put $15,000 down and financed the remaining amount at 10%. You will make annual payments on December 31st for four years that include the interest accrued to date plus $10,000 on the principal each year. You estimate that you will use them for 10 years and then they will be worth $5,000.

On June 30th, you paid $3,600 for a twoyear insurance policy; office expenses of $12,000; $4,500 for advertising in The Post; utilities of $6,000; and Supplies of $1,500.You also paid $26,000 for 13 months of rent. You paid your worker $18,000 (includes amount owed from prior year) and owed her $2,000 more at the end of the year.

On December 31st, you paid the first payment on the furniture and fixtures loan. Paid Uncle Mike his interest and paid the principal balance owed on December 31st.

This year you declared and paid a dividend of $4,000 to your shareholders. On October 1st you issued 30 shares of common stock for $3,000.You paid the 20X2 taxes. The 20X3 taxes will be paid in 20X4. The tax rate is 21%.

Prepare the Journal Entries (including the closing entry), T-accounts, and all four Financial Statements (in good form).

Miller Corporation - Year 20X4 During the year, you bought 31 more Motorcycles for $6,500 each and sold 29 for $12,000 each, same terms as last year. You paid the money owed to suppliers (Accounts Payable) at the beginning of the year and collected all money due you at the beginning of the year (Accounts Receivable).

On January 1st, you purchased a delivery truck for $41,000. You made a down payment of $10,000 and financed the balance at 7%. You will make four equal payments that include interest @ 7%.You makethe first payment on December 31st of this year. You estimate the truck will last about 6 years and then be worth $5,000.

You paid your worker $17,000 (includes amount owed from prior year) and owed her $2,000 more at the end of the year. You paid eleven months of rent @ $2,000 per month. You paid office expenses of $18,000; $6,000 for advertising in The Post; utilities of $6,000; and Supplies of $2,000.

On December 31st, you paid the furniture and fixtures loan payment.
The tax rate is still 21% and during 20X4 you paid 20X3 taxes. Taxes for 20X4 will be paid the following year. On April 1, 20X4, issued 300 shares of common stock for $30,000. At the end of the year, you paid a dividend to shareholders of $6,000.

Prepare the Journal Entries (including the closing entry), T-accounts, and all four Financial Statements(in good form).

PART I LAST WEEK

Miller Corporation - Year 20X1
You have decided to go into the business of selling Motorcycles. You have incorporated your business under the name of Miller Corporation
On January 1, 20X1, you begin by depositing $50,000 cash in the new corporate bank account - $30,000 of the money is yours and $20,000 is borrowed from your Uncle Mike. For the $30,000, which is yours, you (as Miller Corporation) issue yourself 300 shares of common stock. For the $20,000 borrowed from your uncle, you sign a note agreeing to pay back that amount on December 31, 20X3 and promise to pay interest of 8% at the end of each year. In addition to the cash you invested on January 1st, you also invested a piece of land that you own into the business on August 1st that is worth $60,000 in exchange for 600 more shares of stock.

On January 1, 20X1, you bought 20 Motorcycles for $4,000 each. During the year, you sold 16Motorcycles for $8,500 each.

You also paid a security deposit of $2,000 (when you rented your office space); advertising expense of $6,000; 12 months' rent of $24,000; utilities of $4,000; and Supplies of $2,000.

You pay the first year's interest to Uncle Mike on December 31, 20X1.

Your tax rate is 21% of your income before taxes and you pay 50% of these taxes.

Prepare the Journal Entries (including the closing entry), T-accounts, and all four Financial Statements (in good form).

Miller Corporation - Year 20X2 During the second year, you bought 24 Motorcycles and sold 26, same cost and retail prices as the first year, but you have arranged terms with your supplier that allow you to pay 25% of the purchase price in cash and the rest in one year. Because of your new financing arrangement with your vendor, you now sell Motorcycles for 60% down and the rest will be paid for by your customers next year. You paid the same rent. You paid office expenses of $8,000. You also paid $3,000 for advertising in The Post; utilities of $6,000; and Supplies of $1,000. You paid the interest to Mike on December 31st. You hired a worker whom you paid $15,000 (includes amount owed from prior year). You owe your employee $2,000 more in wages at the end of the year. On February 1st, you issued 50 shares of common stock for $5,000. At the end of the year, you paid a dividend of $1,000. Tax rate is the same (21% of taxable income). Paid 20X1 taxes. You will pay 20X2 taxes next year.

Prepare the Journal Entries (including the closing entry), T-accounts, and all four Financial Statements (in good form).

Attachment:- Accounting Cycles Problems Assignment.rar