Business, 25.03.2020 02:32 bellad0124outlookcom

Star Wars, Inc. sold a used Star Destroyer to Chewbacca and Sons Co. for $30,100 cash. The original cost of the Star Destroyer was $200,000 with a salvage value of $25,000, a useful life of 10 years, and accumulated depreciation of $100,000 through the end of the last fiscal year. Note: you will need to record 1/2 year's depreciation for this year before recording the sale (the company policy is to depreciate assets for 1/2 year in the year of acquisition and disposal). Star Wars, Inc. uses the straight-line method to depreciate Star Destroyers. Note: record depreciation expense first, then the disposal.

1. On Dec. 28: Paid the A/P balance to Tattoine Inc from the 12/19 purchase. No discount applies.
2. On Dec. 28: The Board of Directors of Star Wars Inc. declares a $2.50 per share cash dividend to be paid in January of the next year. You will need to determine the number of shares outstanding. See instructions for the beginning amount and don't forget to take into account previous transactions involving new shares issued. Take the amount directly out of retained earnings.
3. On Dec. 28: Paid bill for advertisements run on Dec. 15th. The bill was for $9,150.
4. On Dec. 28: Received payment from Vader Enterprises from the Dec. 13 sale. No discount applies.
5. On Dec. 30 Purchased 280 units of product from Hyperspace Unlimited for $385 per unit on credit, terms n/30
6. On Dec. 31 Sold 180 units to Vader Enterprises for $830 each on credit.
7. On Dec. 31The petty cash custodian performs the month-end reconciliation and totals the receipts as follows:

Postage stamps used $58
Courier costs $73
Company lunch costs $61
Office decorations $30
$68 of cash remained on hand.

8. On Dec. 31 Deposited $30,000 in a bond sinking fund (related to paying back bonds payable). Use the Other assets account for the debit.
9. On Dec. 31 Record the journal entry to decrease the petty cash fund to $250 from $300.

Required:
Record the entry to reimburse the petty cash fund. Book any overage or shortage to Petty Cash Overage/Shortage. Use Misc. expense for all costs noted above.

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Star Wars, Inc. sold a used Star Destroyer to Chewbacca and Sons Co. for $30,100 cash. The original...

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