This workbook is Financial Accounting by Antle amp; Garstka.
APANY FINANCIAL ACCOUNTINGPrepare the debits and credits to annals the cancelment of the up-front costs of1, 2004.E2-7 On December 31, 2004, Sellit, Inc.:(1) Obtains $20,000 specie by selling contemptible hoard. Assume that the hoard is sold atpar appreciate.(2) Obtains $40,000 specie from Loanit Bank. The hypothecation is due on December 31, 2007, andinterest of 10 percent per-annum on the estimate is due on January 1 of each year, ex-cluding January 1, 2005.(3) Buys plant, paying $5,000 specie.(4) Hires supervisor to initiate labor on January 1, 2005. The remuneration is $1,000 per month,payable on the leading of each month, initiatening February 1, 2005.(5) Prepays six-months' divulsion on a manageable edifice, paying $3,000 specie.a. Prepare a estimate sheet for Sellit as of the bar of interest on December 31, 2004(i.e., refecting the prior transactions).b. If Sellit were liquidated (i.e., all liabilities were remunerated and all cherishing goods were soldwith the allowance arranged to contemptible hoard shareholders) at the commencement of busi-ness on January 1, 2005, how ample specie would the shareholders hold?c. Could Sellit pay a specie dividend to contemptible hoard shareholders on January 1, 2005?How enlightened could that dividend be? Would anyone mitigated be overthrow if Sellit remunerated a enlightenedspecie dividend on January 1, 2005? Who?P2-1 You are unmanageable to parallel Oshkosh B'Gosh's financial position at December 29, 2001