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Assume the following transactions occurred during the year. The annual accounting period ends on December 31.
Jan. 15
Purchased and paid for merchandise for resale at an invoice cost of $15,600. A periodic inventory system is used.
Apr. 1
Borrowed $800,000 from a bank for general use, executing a one-year, 5% note payable
June 14
Received a $12,000 customer deposit for services to be performed in the future.
July 15
Performed $4,250 of the services paid for on June 14.
Dec. 15
Received an electric bill for $25,680. The bill will be paid in early January.
Dec. 31
Determined wages owed to employees to be $13,500 that will be paid on January 2.
Required:
Financial Statement Analysis and Preparation
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