Prepare T account only
Extracted text: Charleigh Co., purveyor of fine, fine things, had the following balances at December 31, 2019: Cash Accounts Receivable Allowance for doubtful accts Inventory Equipment Accumulated Depreciation-Equipment Land Patent Accounts Payable Salary Payable Rent Payable Taxes Payable Long-Term Debt Common Stock ($1 per share) Retained Earnings 44,000 60,000 1,000 50,000 (1 thing) 190,000 60,000 50,000 20,000 42,000 4,000 2,000 2,000 80,000 90.000 133,000 During 2020 the following transactions occurred: Jan 1, Mar 1, received all beg A/R and paid all Beg A/P bought 2 things for $60,000 each, (Paid 25% down and rest payable in one year) 2. 6go00 120,000 April 15, paid year 2019 taxes payable May 1, May 15, bought 1 thing for $80,000 (Paid 25% down and rest payable in one year) July 1, July 1, sold one thing for $120.000 (received 3/4 down and the rest in one year) company wrote off $600 in bad debts n sold one thing for $160,000 (received 75% down and the rest will be paid in one year) Aug 1, purchased piece of equipment for $10,000 cash. Sept 1, Sold 40,000 shares of.common stock for $40.000 Oct 1 Dec 1, Dec 31, paid an annual payment on long term debt- $28,000. Of that amount, $8,000 Purchased a piece of land for $50.000 declared and paid $.20 per share dividend, was for interest and $20,000 was for principal. During the year the company paid 15 months' rent of $15,000. Also during the year the company paid salaries of $12,000 in cash, and at the end of the year they owed $3,000 for salaries, Depreciation for the year is $10.000. The long-term debt is payable in $20.000 principal payments plus interest of 10% each December 31. The tax rate is 30% and during the year the company paid 50% of 2020 taxes. The company uses the FIFO inventory system. The company estimates that 3% of its receivables will ultimately be uncollectible.