60.1K

Verified Solution

Link Copied!

Prepare Retained Earnings Statement.

IMEN-341 Accounting & Finance for Engineers Project: Part 1 - Financial Statements Preparation Chart of Accounts for Moderno Engineering Company Assets: 101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance 125 Warehouse Building 130 Equipment Liabilities: 201 Account Payable 205 Note Payable 210 Wages Payable 215 Loan Payable 220 Interest Payable Owners' Equity: 301 Capital Stock 310 Dividends Revenues: 401 Sales Revenue 405 Interest Revenue Expenses: 501 Cost of Goods Sold 505 Wages Expense 510 Utilities Expense 515 Insurance Expense 520 Income Tax Expense 530 Depreciation Expense = Historical cost - Salvage Value Useful Life Professor: Csar Javier Snchez Dvila, MBA, ME, JD, CPA, CBM, PE, LSSBB UNIVERSIDAD ANA G. MENDEZ School of Engineering DEPARTMENT OF INDUSTRIAL AND MANAGEMENT ENGINEERING IMEN-341 Accounting & Finance for Engineers Assume the following: Moderno Engineering Company had the following transactions: Jan-01 Issued capital stock for $955,000. Jan-01 Purchased a Packaging Equipment for $20,000 with a useful life of 5 years and a Salvage value of $2,500. Jan-01 Jan-03 Jan-05 Jan-07 Purchased an Insurance Policy (1 year) for $30,000. Purchased a Machine, paying $10,000 in cash and issuing a note of $20,000. Purchased $23,000 of inventory on account. Sold inventory costing $4,000 for $50,000 on account. Paid $1,000 for inventory purchased on account (from Jan-05). Collect $15,550 of accounts receivable from customers (from Jan-07). Paid utility bills totaling $1,000. Jan-11 Jan-15 Jan-17 Jan-23 Paid wages for $10,000. Jan-25 Collect $3,000 in bank interest. Jan-30 Paid $12,580 due to income taxes. Jan-31 Adjust the Insurance account and depreciation expense at the end of the month

Answer & Explanation Solved by verified expert

See Answer