1. Business
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  3. only part g in other information thanks...

Question: only part g in other information thanks...

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only part g in other information
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Part II: Comprehensive (45 points) This is the balance sheet for Fremont Artisenal Soda (FAS), a local purveyor of Unusual Carbonated Beverages Their business includes selling beverages. and providing promotional services. The balance sheet is for the quarter ended December 31, 2014. Fremont Artisanal Soda Balance Sheet Demember 31,2014 ASSETS Current Assets Cash Accounting receivable Inventory Prepaid advertising 18.400 22.500 96.700 13.500 51,100 Total Current Assets Building (net) Equipment (net) 180,000 30,000 Total Assets 361,100 LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities: Accounts payable Interest payable Income tax payable Uneamed revenue 18,900 675 4.225 24.750 48,550 Total Current Liabilities Long-Term Debt Total Liabilities Sharehokders Equity 60,000 108.550 Common stock Retained earnings 120,000 132,550 Total Liabilities and Shareholders Equity 361.100
The following transactions take place during January, February, and March of 2015 (the f quarter) FAS sells 10,400 cases of soda. The selling price is $22 per case, and the cost is $8 per case, 90% of the sales are account to local stores. The remaining 10% are in cash direct to customers 1. 2. FAS purchases an additional 9 500 cases of soda for $8.50 per case, purchased with cash 3. FAS provides services during the quarter worth $40,000. $30,000 is in cash, and the remainder is on account. 4. Employee salaries for the quarter total $21 400, all paid in cash during the quarter 5. FAS incurs various operating expenses during the quarter, including utilities, shipping, and supplies. These total $34,700 and are paid in cash. FAS pays $600 for quarterly dues in the Ballard-Fremont Council of Businesses; this payment in in cash FAS collects $207,000 from sales on account FAS pays $77,900 for purchases on account FAS purchases new equipment for $10,000 on March 31, 2015. They sign a note for the purchase, requiring quarterly payments commencing June 30, 2015 6. 7. 8. 9. 10. FAS has 10,000 shares of common stock held by investors. They declare a dividend of $0.50 per share on March 15, 2015, to be paid on June 15, 2015. Other information: The Prepaid Advertising was originally paid for on October 1, 2014. On that date, FAS paid $18,000. The advertising covers one year (until September 30, 2015) The Building reported on the balance sheet was originally purchased for $300,000 on January 1, 1995. It has an expected useful life of 50 years. The Equipment reported on the balance sheet was purchased on July 1,2012 and has a five-year useful life a. b. c. d. The Equipment purchased in transaction (9) has a useful life of seven years e, The Long-Term Debt on the balance sheet has an annual interest rate of 9%. Interest payments are made quarterly on February 15, May 15, August 15, and November 15. The debt principal of $60,000 must be repaid on December 31, 2027 FAS received $27,000 on December 1, 2014 to provide services to customers for a six month period beginning December 15, 2014. Assume the service is provided equally over this period The income tax rate on positive pretax income is 35%. Taxes incurred during 2015 are payable on April 15,2016. f. g. Required: Record all necessary journal entries related to activities for the first quarter (ended March 31,2015.)
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