ACCOUNTING CYCLE REVIEW PROBLEM II MFE6110 THIS IS YEARS THREE

AND FOUR (A CONTINUATION OF THE PREVIOUS PROBLEM)–

Jones, Inc. Year 2018 During the year, you paid the amounts owed for Widgets at the end
of year 2017 and collected all the amounts owed by customers for 2017. You purchased
twelve more Widgets for $4,000 each and at the same terms as in 2017. During the year
you sold 11 Widgets for $8,000 each at the same terms as 2017. On January 1, 2018, you
purchased furniture and fixtures for $45,000. You put $15,000 down and financed the
remaining amount at 10%. You will make annual payments on December 31st for three
years that include the interest accrued to date plus $10,000 on the principal each year.
You estimate that you will use them for 10 years and then they will be worth $5,000. On
June 30th, you paid $4,800 for a two-year insurance policy. You paid your worker $8,000
and owed her $2,000 more at the end of the year. You also paid $13,000 for 13 months of
rent. This year you declared and paid a dividend of $5,000 to your shareholders. On
October 1st you issued 10 shares of common stock for $3,000. On December 31st, you
paid the first payment on the furniture and fixtures loan. Also on December 31st, you
paid Mike his interest. You paid the 2017 taxes. The tax rate is 30%. The 2018 taxes will
be paid in 2019. You use the FIFO inventory system. Prepare the Journal Entries, T-
accounts, and all four Financial Statements. Jones, Inc. Year 2019 During the year, you
bought 11 more Widgets for $5,000 each and sold 12 for $9,000 each, same terms as last
year. You paid the money owed to suppliers (Accounts Payable) at the beginning of the
year and collected all money due you at the beginning of the year (Accounts Receivable).
On January 1st, you purchased a delivery truck for $30,000. You made a down payment
of $10,000 and financed the balance at 7%. You will make 4 equal payments that include
interest @ 7%. You make the first payment on December 31st of this year. You estimate
the truck will last about 6 years and then be worth $6,000. You paid your worker $14,000
and owed her $3,000 more at the end of the year. You paid eleven months of rent @
$1,000 per month. On December 31st, you paid the furniture and fixtures loan payment.
Paid Uncle Mike his interest and also paid the principal balance owed on December 31st.
On April 1, 2019, issued 100 shares of common stock for $20,000. The tax rate is still
30% and during 2019 you paid 2018 taxes. Taxes for 2019 will be paid the following
year. At the end of the year, you paid a dividend to shareholders of $8,000. Prepare the
Journal Entries, T-accounts, and all four Financial Statements.

THIS IS YEARS THREE AND FOUR

(A CONTINUATION OF THE PREVIOUS PROBLEM)–
Jones, Inc. Year 2018
During the year, you paid the amounts owed for Widgets at the end of year 2017 and
collected all the amounts owed by customers for 2017. You purchased twelve more
Widgets for $4,000 each and at the same terms as in 2017. During the year you sold 11
Widgets for $8,000 each at the same terms as 2017. On January 1, 2018, you purchased
furniture and fixtures for $45,000. You put $15,000 down and financed the remaining
amount at 10%. You will make annual payments on December 31st for three years that
include the interest accrued to date plus $10,000 on the principal each year. You
estimate that you will use them for 10 years and then they will be worth $5,000. On June
30th, you paid $4,800 for a two-year insurance policy. You paid your worker $8,000 and
owed her $2,000 more at the end of the year. You also paid $13,000 for 13 months of
rent. This year you declared and paid a dividend of $5,000 to your shareholders. On
October 1st you issued 10 shares of common stock for $3,000. On December 31st, you
paid the first payment on the furniture and fixtures loan. Also on December 31st, you
paid Mike his interest. You paid the 2017 taxes. The tax rate is 30%. The 2018
taxes will be paid in 2019. You use the FIFO inventory system.
Prepare the Journal Entries, T-accounts, and all four Financial Statements.
Jones, Inc. Year 2019
During the year, you bought 11 more Widgets for $5,000 each and sold 12 for $9,000
each, same terms
as last year. You paid the money owed to suppliers (Accounts Payable) at the beginning
of the year
and collected all money due you at the beginning of the year (Accounts Receivable). On
January 1st,
you purchased a delivery truck for $30,000. You made a down payment of $10,000 and
financed the
balance at 7%. You will make 4 equal payments that include interest @ 7%. You make
the first
payment on December 31st of this year. You estimate the truck will last about 6 years
and then be
worth $6,000. You paid your worker $14,000 and owed her $3,000 more at the end of the
year. You
paid eleven months of rent @ $1,000 per month. On December 31st, you paid the
furniture and
fixtures loan payment. Paid Uncle Mike his interest and also paid the principal balance
owed on
December 31st. On April 1, 2019, issued 100 shares of common stock for $20,000. The
tax rate is still
30% and during 2019 you paid 2018 taxes. Taxes for 2019 will be paid the following
year. At the end
of the year, you paid a dividend to shareholders of $8,000.
Prepare the Journal Entries, T-accounts, and all four Financial Statements.