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C11-1 Financial Reporting of Depreciation, Write-off, Bond Issuance and Common Stock Issuance, Purchase, Reissuance, and Cash Dividends (Chapters 4, 8, 9, 10, and 11) [LO 4-2, 4-5, 8-2, 9-3, 10-3, 11-2, 11-3]

American Laser, Inc., reported the following account balances on January 1.

	Debit			Credit
Accounts Receivable	$	5,000
Accumulated Depreciation				$	30,000
Additional Paid-in Capital					90,000
Allowance for Doubtful Accounts					2,000
Bonds Payable					0
Buildings		247,000
Cash		10,000
Common Stock, 10,000 shares of $1 par					10,000
Notes Payable (long-term)					10,000
Retained Earnings					120,000
Treasury Stock		0
TOTALS	$	262,000		$	262,000

The company entered into the following transactions during the year.

Jan.		15		Issued 5,000 shares of $1 par common stock for $50,000 cash.
Jan.		31		Collected $3,000 from customers on account.
Feb.		15		Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash.
Mar.		15		Reissued 2,000 shares of treasury stock for $24,000 cash.
Aug.		15		Reissued 600 shares of treasury stock for $4,600 cash.
Sept.		15		Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock.
Oct.		1		Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101.
Oct.		3		Wrote off a $2,000 balance due from a customer who went bankrupt.
Dec.		29		Recorded $230,000 of service revenue, all of which was collected in cash.
Dec.		30		Paid $200,000 cash for this years wages through December 31. Ignore payroll taxes and payroll deductions.
Dec.		31		Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.)

the amount of Retained earnings. At the end of the year, the adjusted net income was $20,000.

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the amount of Retained earnings. At the end of the year, the adjusted net income was $20,000.

UnadjustedAdjustedPost-closing

	AMERICAN LASER, INC Classified Balance Sheet At December 31 Assets Current Assets $0 0 0 0 0 0 0 Total Assets $0 Liabilities Current Liabilities Noncurrent Liabilities 0 0 0 Noncurrent Liabilities 0 0 0 0 0 0 Stockholders' Equity Stockholders' Equity 0 0 0 Total Liabilities and Stockholders' Equity 0 Interest Receivable Total 0 0 0 Total Liabilities and Stockholders' Equity $0

	AMERICAN LASER, INC Classified Balance Sheet At December 31 Assets Current Assets $0 0 0 0 0 0 0 Total Assets $0 Liabilities Current Liabilities Noncurrent Liabilities 0 0 0 Noncurrent Liabilities 0 0 0 0 0 0 Stockholders' Equity Stockholders' Equity 0 0 0 Total Liabilities and Stockholders' Equity 0 Interest Receivable Total 0 0 0 Total Liabilities and Stockholders' Equity $0

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