Ask Question, Ask an Expert


Ask Cost Accounting Expert

problem: Mulder Corporation's balance sheet at December 31, 2006, is given below.

MULDER CORPORATION Balance Sheet December 31, 2006



Accounts payable


Accounts receivable


Common Stock


Allowance for doubtful accounts


Retained earnings


Merchandise inventory


Total L&SE


Total Assets




During January 2007, the following transactions occurred. Mulder uses the perpetual inventory method.



 Mulder accepted a 4-month, 12% note from Alien Company in payment of Alien's $1,000 account.



Mulder wrote off as uncollectible the accounts of Ex Corporation ($450) and Files Company ($230).



 Mulder purchased $17,200 of inventory on account.



 Mulder sold for $25,000 on account inventory that cost $15,000.



Mulder sold inventory that cost $ 600 to Ben Borke for $1,000. Borke charged this amount on his Visa First Bank card. The services fee charged Mulder by First Bank is 3%.



 Mulder collected $21,900 from customers on account.



 Mulder paid $16,300 on accounts payable.



 Mulder received payment in full ($230) from Files Company on the account written off on January 3.



 Mulder purchased advertising supplies for $1,400 cash.



 Mulder paid other operating expenses, $4,218.

Adjustment information:

[A] Interest is recorded for the month on the note from January 1.
[B] Bad debts are expected to be 6 percent of the January 31, 2007, accounts receivable.
[C] A count of advertising supplies on January 31, 2007, reveals that $560 remains unused.
[D] The income tax rate is 30 percent (Suggestion: Make income statement up to "Income before taxes" and multiply by 30% to compute the amount.)

[You may want to set up T accounts to estimate ending balances.] 
[A] Make journal entries for the transactions listed above and adjusting entries.
[B] Make an adjusted trial balance at January 31, 2007. 
[C] Make an income statement and a retained earnings statement for the month ending January 31, 2007, and a classified balance sheet as of January 31, 2007.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922631

Have any Question? 

Related Questions in Cost Accounting

Cool ride skis ltd case studyit is the end of 2015 and

COOL RIDE SKIS LTD CASE STUDY It is the end of 2015 and Grace Miller, senior management accountant for Cool Ride Skis Ltd has been analysing the Victorian division's 2015 results. Both she and the company's Managing Dire ...

Assignmentproblem 1 cvp analysisthe owners of cobbs gym

Assignment Problem 1: CVP analysis The owners of Cobb's Gym currently are working on their operating plan for the coming year, and they have provided you with the following average membership and cost data for the previo ...

Learning outcomes1 identify and critically analyse

Learning Outcomes 1. Identify and critically analyse principles and trends in Performance Measurement and Control. 2. Determine the different budgeting techniques and critically evaluate their use in short term decision ...

Module cost of capital worksheetthe assignment in this

Module Cost of Capital Worksheet The assignment in this module builds on the idea of forecasting and valuation theory from Chapters 6 and 7 in Module Six by valuing a company through calculations using real data. This wi ...

In your accounting career you will be required to analyse

In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume that you are ...

This consists of a series of short answers to given

This consists of a series of short answers to given questions or statements. In a single Word document, provide 1-2 paragraphs about each of the following: 1. Explain and provide an example of each step of the five-step ...

Assessment requirementsthis assessment has four primary

ASSESSMENT REQUIREMENTS This assessment has four primary aims: 1. To provide you with an opportunity to develop your understanding of standard costing and variance analysis; 2. To provide you with the means to further re ...

Abc costing1 assume you own a business that makes two

ABC COSTING 1. Assume you own a business that makes two complementary products for which you allocated manufacturing overhead proportionally. A competitor is trying to undercut your price for one of the products. How mig ...

Part aemu electronics is an electronics manufacturer

Part A Emu Electronics is an electronics manufacturer located in Box Hill, Victoria. The company's managing director is Shelly Chan, who inherited the company from her father. The company originally repaired radios and o ...

The cost of capitalassume that you are a member of an

The Cost of Capital Assume that you are a member of an aerospace company's newly formed executive committee that has been given the role of reviewing requests for major capital expenditures. The committee chairman has la ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate