Homework Questions? Ask a Tutor for Answers ASAP
Not a Homework Question?
How JustAnswer Works:
Ask an Expert
Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
Get a Professional Answer
Via email, text message, or notification as you wait on our site.
Ask follow up questions if you need to.
100% Satisfaction Guarantee
Rate the answer you receive.
Ask Scott Your Own Question
MIT Graduate (Math, Programming, Science, and Music)
Type Your Homework Question Here...
Scott is online now
Apache Motors Corporation - Accounting II - Spring 2012
Susan Apache decided to form a corporation from her sole proprietorship, Apache Motors’ Company. The state of Delaware allowed her to incorporate on January 1, 2009. The corporate charter authorizes Apache Motors’ Corporation to issue 1 million shares of $1 par value common stock as well as 200,000 shares of no par preferred stock. During the 1st quarter, as a corporation, Apache completed the following selected transactions:
January 1- Incorporated as Apache Motors’ Corporation.
• Issued 50,000 shares of $1 par value common stock to Susan Apache. Susan Apache purchased these shares with her Owner’s Equity in Apache Motor’s Company and cash of $265,950. (Hint: Zero out the owner’s capital account.)
• Issued $200,000 of 9%, 10 year bonds paying interest semiannually when the market rate of interest was 8%
• Interest paid on note payable
January 5 - Issued 2,000 shares of no-par preferred stock, receiving cash of $100,000
January 12 – Paid salaries from December 31, 2008.
February 2 - Purchased 11,000 shares of Apache common stock for the treasury at $5 per share
February 19 - A building in California was destroyed by a tornado. The building had a cost of $100,000, Accumulated Depreciation of $40,000, and insurance proceeds from the destruction were $50,000. This item is considered to be both unusual in nature and infrequent in occurrence. (Ignore tax savings until Adjustments!)
March 1 - Sold 1,000 share of treasury stock for cash of $6.25 per share
March 1 – a) Purchased an office complex for $200,000 cash. It has a 20 year life and will have zero salvage value.
b) Paid off the note payable (Ignore additional Interest).
c) Obtained a delivery vehicle by signing a note payable for $50,000. The vehicle has a 5 year life with a $3,000 salvage value.
March 31 - Sold merchandise for $700,000 (70% paid in cash, 30% on account). Cost of goods sold was $400,000.
- Operating Expense were $170,000 with $160,000 of this amount paid. Apache uses a perpetual inventory system.
March 31 – Adjusting Entries
• Prepaid insurance expired $100
• Amortization of the patent $2,400 per year.
• Depreciation expense - Office Equipment $5,000
• Depreciation expense on the Delivery Vehicle & Office Complex
• Supplies on hand at year end $900
• Accrued interest and amortized the discount (effective interest method) on the bonds payable
• Accrued income tax of $35,000, less the tax savings from the Extraordinary Loss on 2/19 (35% Tax Rate)
• Unearned revenue from December 31, 2008 =$0
• Declared a quarterly cash dividend of $1.00 per share on preferred stock. Date of record is April 11 with payment scheduled for April 19.
a) Record the transactions in the general journal and ledger accounts of Apache Motors January 1st thru March 31, 2009. (15 points)
b) Prepare a trial balance as of March 31, 2009 (5 points)
c) Prepare a complete amortization schedule for the bond (10 points)
d) Record the adjusting entries and prepare an adjusted trial balance as of March 31, 2009
Due Date: April 8, 2012
a) Prepare the Financial statements of Apache Motors’ Corporation: (35 points)
1) Prepare a multi step income statement including earnings per share for the quarter ended March 31, 2009. Determine how many shares of Apache common stock outstanding.
2) Prepare a Statement of Stockholder’s Equity
3) Prepare a Classified Balance Sheet
4) Prepare a Statement of Cash Flow, using the DIRECT METHOD for Operating Activities
5) Prepare the closing entries for the corporation and post closing trial balance for the corporation.
b) Write a letter to the board of directors describing the corporation’s 1st Quarter performance (1 pg) (10 points)
Due Date: April 28, 2012
Note: All submissions are to be done in a professional manner. Please refer to your textbook for examples as well as your syllabus.
Format and print the project. The Grade Sheet is after the Balance on the Next Page
Apache Motors Corporation
December 31, 2008
Short-term investments 2,000
Accounts receivable 7,000
Prepaid insurance 580
Total current assets $443,280
Property, plant, and equipment
Less: Accumulated depreciation 40,000 60,000
Office equipment $24,000
Less: Accumulated depreciation 5,000 19,000 89,000
Total assets $542,580
Liabilities and Owner’s Equity
Accounts payable $452,100
Salaries payable 1,600
Unearned revenue 900
Interest payable 450
Total current liabilities $455,050
Mortgage payable 41,000
Notes payable 12,480 53,480
Total long-term liabilities
Total liabilities 508,530
Susan Apache, Capital 34
4 years ago.
Share this conversation
replied 4 years ago.
Welcome to JA, it will be my pleasure to do the assignment, keeping in view its length, technciality and descriptive nature, the fair price is $110. Please also mention your deadline, thanks.
Ask Your Own Homework Question
Share this conversation
Related Homework Questions
For LogicPro - Remote help"
For LogicPro only
Can you assist
Write 5 page on the struggle for civil rights in the United
Stem cells. Your friend had a spinal cord injury after a bad
Firewall Inbound and Outbound Rules, you are given a set-up
I need ideas of short term goal sand term goals for a
Is there an article that shows that people with bipolar
NOT GLENN PLEASE According to what I have read, the prose
I need help with Java HW, i finished it but their are still
Ask a Tutor
Get a Professional Answer. 100% Satisfaction Guaranteed.
33 Tutors are Online Now
Type Your Homework Question Here...
Terms of Service
Privacy & Security
© 2003-2016 JustAnswer LLC