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Please do the T-account, and journal entry for the following question SeBASS has total sales for the year of $2,115,000...

Please do the T-account, and journal entry for the following question

  1. SeBASS has total sales for the year of $2,115,000. Included in the total sales figure are $317,250 of cash sales. During the year, the firm received $1,130,000 of payments on account.
  2. During the year, the firm determined that accounts totaling $4,900 were uncollectible. Moreover, a $1,000 receivable written off during the year was subsequently collected. The $1,000 is not included in cash collections in “A.” above.
  3. SeBASS uses the allowance method to record bad debts. Specifically, the firm uses the percentage of receivables method to compute the allowance for doubtful accounts. For the year ended June 30, 2019, SeBass estimates the required allowance for doubtful accounts to be 10% of the gross accounts receivable balance at June 30, 2019.
  4. SeBASS, Inc. purchased $1,100,000 of additional inventory on account during the year. The purchases are charged to accounts payable. Total payments made on account for the year were $1,007,000. Inventory at June 30, 2019 totaled $98,950.
  5. SeBASS has an outstanding 2.5% note payable (in long-term debt) as of June 30, 2018. Interest is paid annually on June 30th.
  6. Abbee Company 4% Bonds were acquired at $300,000 face (par) value during fiscal 2017. The bonds pay interest semi-annually on January 1stand July 1st. SeBASS correctly classified the bonds as Available-for-Sale Securities (AFS).
  7. On July 1, 2018, the SeBASS put a new roof on the administrative building. The cash cost of the new roof was $27,000 and is expected to add 6 years to the life of the building from the date of installation. The firm also repainted the exterior of the building. The cash cost of the painting, which the firm does every four years, was $7,000.
  8. Annual liability insurance premiums are payable on January 1stof each year. The premium amount paid in January 2019 was $36,000.
  9. On April 1st, SeBASS purchased Sales Building 4 costing $480,000. SeBass paid forty-five percent (45%) of the building’s cost in cash and issued a 3% 5-year note payable for the balance. The note requires annual interest payments. The expected life of the facility is 20 years, with no salvage value. SeBASS uses the straight-line method of depreciation. The book values (as of June 30, 2018) of other PP&E currently on the books (also with no salvage value) are as follows:

Historical

Accumulated

Remaining

Asset

Cost

Depreciation

Life

Land

$   251,450

$             -

-

Sales Building 1

468,000

280,800

8

Sales Building 2

404,000

181,800

11

Sales Building 3

445,000

133,500

14

Administration Building

156,000

39,000

15

Total

$1,724,450

$ 635,100

  1. Administrative and Sales employee wages of $260,000 were earned and paid during fiscal 2019. In addition, during July 2018, SeBASS paid wages owed from the prior year. Unpaid wages for Fiscal 2019, which will be paid in July 2019, amount to $24,900.
  2. On June 30, 2019, SeBASS sold Sales Building 2 for $195000. The firm received payment in cash.
  1. On June 30, 2019, the ABBEE 6% bonds have a fair market value of $305,900.
  1. During June 2019, SeBASS paid $19,500 cash to acquire its own shares. These shares were correctly classified as Treasury Shares.
  2. During May 2019, SeBASS’s board of directors declared $31,500 of dividends. At June 30, 2019, the Dividend Payable account balance was $2,400.
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ReportAnswer #1

Bank & Cash A/c Trade receivables A/c Sales A/c Credit Debit Bank & Cash 317,250 Debit CreditDebit Credit Trade Receivables 1

30 F Bank & Cash 12,000 Interest income Abbe company 4% bond Depreciation Acc Dep PPE 32 Debit Credit Debit CreditDebit Credi

57 Interest expenses Unpaid wages Gain on Investment Loss on PPE Credit Debit 59 3% 5-year note payable Debit CreditDebit Cre

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