Question 1:
Record the above transactions in general journal form and post to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Question 2: Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Roth Inc. for 2016.(Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)
Question 3: What is the net realizable value of the accounts receivable at December 31, 2016?
Roth Inc. experienced the following transactions for 2016, its first year of operations:
1. Issued common stock for $80,000 cash.
2. Purchased $250,000 of merchandise on account.
3. Sold merchandise that cost $156,000 for $310,000 on account.
4. Collected $258,000 cash from accounts receivable.
5. Paid $235,000 on accounts payable.
6. Paid $62,000 of salaries expense for the year.
7. Paid other operating expenses of $51,000.
8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule:
Number of Days
Past Due Amount Percent Likely to
Be Uncollectible Allowance
Balance
Current $ 31,200 .01
0-30 13,000 .05
31-60 2,600 .10
61-90 2,600 .20
Over 90 days 2,600 .50