Problem
[The following information applies to the questions displayed below]
The following post-closing trial balance was drawn from the accounts of Hardwood Timber Co. as of December 31. 2013:
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Debit
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Credit
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Cash
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$ 6.140
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|
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Accounts receivable
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18.225
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Allowance for doubtful accounts
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$ 1.590
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inventory
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25.380
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Accounts payable
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8.645
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Common stock
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21.200
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Retained earnings
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18.310
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Totals
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$ 49.745
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$49745
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Transactions for 2014
1. Acquired an additional $10.600 cash from the Issue of common stock.
2. Purchased $59.200 of inventory on account.
3. Sold inventory that cost $61.200 for $96.600. Sales were made on account
4. Wrote off $1.040 of uncollectible accounts.
5. On September 1. Hardwood loaned $7.500 to Pine Co. The note had a 8 percent Interest rate and a one-year term.
6. Paid $16.120 cash for salaries expense.
7. Collected $86.380 cash from accounts receivable.
8. Paid 551.600 cash on accounts payable.
9. Paid a $4.800 cash dividend to the stockholders.
10. Estimated uncollectible accounts expense to be 1.50 percent of sales on account.
11. Recorded the accrued interest at December 31. 2014.