Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet

Sales $46,500 Assets $20,500 Debt $6,500
Costs 38,780 Equity 14,000
Net income $7,720 Total $20,500 Total $20,500

The company has predicted a sales increase of 14 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.

Required:
Prepare the pro-forma statements.

On june 3, teal company sold to chester company merchandise having a sale price of $2,600 with terms of 2/10, n/60, f.o.b. shipping point. an invoice totaling $91, terms n/30, was received by chester on june 8 from john booth transport service for the freight cost. on june 12, the company received a check for the balance due from chester company. prepare journal entries on the teal company books to record all the events noted above under each of the following bases. (1) sales and receivables are entered at gross selling price. (2) sales and receivables are entered at net of cash discounts.