wk1 Homework Record those accruals and deferrals Create financial statements

Sentry, incorporated was started on January 1, Year 1. Year 1 Transactions Acquired $20, 000 cash by issuing common stock Earned S 62, 000 of revenue on account. On October 1, Year 1, borrowed $12, 000 cash from the local bank. Incurred $3,700 of operating expenses on account, Collected $5, 000 cash from accounts receivable Paid $2, 900 cash to pay off a portion of the accounts payable. On December 31, Year 1, Sentry recogrized accrued interest expense. The note had a one-year term and an 8 percent annual interest rate. Year 2 Transactions Collected cash for the remaining balance in accounts receivable. Paid cash to settle the remaining balance of accounts payable. On September 30, Year 2, recognized accrued interest expense. On September 30, Year 2, paid cash to settle the balance of the interest payable account. On September 30, Year 2, paid cash to settle the notes payable. Required: Record the everits for Year 1 and Year 2 in an accounting equation. At the end of Year 1, total the…

Journalize the following: 1. On the books & records of Company A: On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April                                                                                       May   2. On the books & records of Company A: In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. In March, Company A sold Investment in XYZ for $150. Payment was received in cash.     3. On the books & records of Company A: On April 1st, Company A paid $1,200 for insurance expense that covers the year 4/1/17-3/31/18. Record 4/1/17 entry for payment of $1,200 Record 4/30/17 journal entry     4. There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund…

Georgia Corporation incorporated on September 2, current year. The company engaged in the following transactions during its first month of operations. Sept. 2 Issued capital stock in exchange for $1,17e,e00 cash. Sept. 4 Purchased land and a building for $1,080,000. The value of the land was $240,eee, and the value of the building was $840,000. The company paid $120,000 cash and issued a note payable for the balance. Sept. 12 Purchased office supplies for $600 on account. The supplies will last for several months. Sept. 19 Billed clients $216,000 on account. Sept. 29 Recorded and paid salary expense of $72, e00. Sept. 30 Received $132,0ee from clients billed on September 19. A partial list of the account titles used by the company includes the following. Cash Accounts Receivable Office Supplies Land Building Notes Payable Accounts Payable Capital Stock Client Revenue Salary Expense a. Prepare journal entries for the above transactions. b. Post each entry to the appropriate ledger…

Line following information applies to the questions displayed below.j The following transactions apply to Park Company for Year 1: 1. Received $31,000 cash from the issue of common stock. 2. Purchased inventory on account for $143,000. 3. Sold inventory for $172,500 cash that had cost $105,500. Sales tax was collected at the rate of 8 percent on the inventory sold. 4. Borrowed $24,000 from First State Bank on March 1, Year 1. The note had a 8 percent interest rate and a one-year term to maturity. 5. Paid the accounts payable (see transaction 2). 6. Paid the sales tax due on $153,500 of sales. Sales tax on the other $19,000 is not due until after the end of the year. 7. Salaries for the year for one employee amounted to $28,000. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income tax withheld was $5,300. 8. Paid $2,600 for warranty repairs during the year. 9. Paid $12,000 of other operating expenses during the year. 10. Paid a…

Sentry, Inc. was started on January 1, Year 1.Year 1 Transactions Acquired $20,000 cash by issuing common stock. Earned $62,000 of revenue on account. On October 1, Year 1, borrowed $12,000 cash from the local bank. Incurred $3,700 of operating expenses on account. Collected $5,000 cash from accounts receivable. Paid $2,900 cash to pay off a portion of the accounts payable. On December 31, Year 1, Sentry recognized accrued interest expense. The note had a one-year term and an 8 percent annual interest rate. Year 2 Transactions Collected cash for the remaining balance in accounts receivable. Paid cash to settle the remaining balance of accounts payable. On September 30, Year 2, recognized accrued interest expense. On September 30, Year 2, paid cash to settle the balance of the interest payable account. On September 30, Year 2, paid cash to settle the notes payable. Requireda. Record the events for Year 1 and Year 2 in an accounting equation. At the end of Year 1, total the columns…

Pomona, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $30,000, 60 day, six percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received an $18,000, 120 day, seven percent note from B. Shore Company on account. Dec.16 Received a $14,400, 45 day, eight percent note from C. Judd on account. Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore’s account as uncollectible. Ponoma, Inc. uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $24,500. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,300. Dec.31 Made the appropriate adjusting entries for interest. RequiredRecord the…

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At the beginning of Year 2, Better Corporation's accounting records had the following general ledger accounts and balances. Event Beginning Balance 01/01/Year 2 Cash 22,000 Assets Required A Required B Land BETTER CORPORATION Accounting Equation Liabilities 32,000 13, 200 Better Corporation completed the following transactions during Year 2: 1. Purchased land for $11,000 cash. 2. Acquired $37,000 cash from the issue of common stock. 3. Received $76,000 cash for providing services to customers. 4. Paid cash operating expenses of $40,800. 5. Borrowed $22,000 cash from the bank. 6. Paid a $11,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $47,000. Required C Notes Payable Complete this question by entering your answers in the tabs below. Stockholders Equity Common Stock 8,200 Retained Earnings Required a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends…

Yi Min started an engineering firm called Min Engineering. He began operations and completed seventransactions in May, which included his initial investment of $18,000 cash. After those seven transactions,the ledger included the following accounts with normal balances. Cash . . . . . . . . . . . . . . . . . . $37,600Office supplies. . . . . . . . . . 890Prepaid insurance. . . . . . . 4,600Office equipment. . . . . . . $12,900Accounts payable. . . . . . . 12,900Y. Min, Capital. . . . . . . . . . 18,000Y. Min, Withdrawals . . . . . . . . . . . $ 3,370Engineering fees earned. . . . . . . 36,000Rent expense. . . . . . . . . . . . . . . . 7,540 Required 1. Prepare a trial balance for this business as of the end of May. 2. The following seven transactions produced the account balances shown above. a. Y. Min invested $18,000 cash in the business. b. Paid $7,540 cash for monthly rent expense for May. c. Paid $4,600 cash in advance for the annual insurance premium beginning the next period. d.…

Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the business and received 5,800 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $70,150; December 31, current year, amounts due from customers from sales of books, $41,000; unused portion of store and office equipment, $78,000; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,200. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet as of the end of the current year. Some information has been given below. 2. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income…

ll. Subject :- Accounting

Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the business and received 4,700 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,650; December 31, current year, amounts due from customers from sales of books, $39,500; unused portion of store and office equipment, $73,500: December 31, current year, amounts owed to publishers for books purchased, $12,600; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet as of the end of the current year. Some information has been given below. 2. What was the amount of net income for the year? (Hint: Use the retained earnings equation (Beginning Retained Earnings + Net Income…

The following transactions apply to Pecan Co. for Year 1, its first year of operations: 1. Received $40,000 cash in exchange for issuance of common stock. 2. Secured a $111,000 ten-year installment loan from State Bank. The interest rate is 6 percent and annual payments are $15,081. 3. Purchased land for $25,000. 4. Provided services for $80,000. 5. Paid other operating expenses of $49,000. 6. Paid the annual payment on the loan. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement and balance sheet for Year 1. c. What is the interest expense for Year 2? Year 3? Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Bal Sheet Req A Reg C Prepare a balance sheet for Year 1. PECAN COMPANY Balance Sheet As of December 31, Year 1 Assets

Record each transaction in a journal entry. Explanations are not required.

Required information [The following information applies to the questions displayed below.] The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable Numerator: Year 1 $ 54,017 29,321 4,625 141,979 55,558 3. Compute the Year 2 year-end debt ratio. 1 0 0 77,085 0 Debt Ratio Denominator: Year 2 $ 10,358 22,988 3,388 151, 235 64,558 185,208 46,216 38, 232 131,424 = = Debt Ratio Debt ratio 0

During its first year of operations, a company entered into the following transactions: • Borrowed $5,150 from the bank by signing a promissory note. • Issued stock to owners for $11,500. • Purchased $1,150 of supplies on account. Paid $550 to suppliers as payment on account for the supplies purchased. What is the amount of total assets at the end of the year? Multiple Choice O O $17,250 $17,800 $5,750 $16,650

The following transactions apply to Pecan Co. for Year 1, its first year of operations: 1. Received $33,000 cash in exchange for issuance of common stock. 2. Secured a $101,000 ten-year installment loan from State Bank. The interest rate is 6 percent and annual payments are $13,723. 3. Purchased land for $27,000. 4. Provided services for $95,000. 5. Paid other operating expenses of $49.000. 6. Paid the annual payment on the loan. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement and balance sheet for Year 1. c. What is the interest expense for Year 2? Year 3? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Req C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.)

Accounting question: If you are doing a balance sheet with notes payable of 96,600. Assuming 13,600 of the note payable will be paid the following year. Where are how do you enter it.  Long Term Liability?

Record each transaction in a journal entry. Explanations are not required.

the effects on the accounting equation under the accrual basis. A sample is provided. a. (Sample) Received $9,900 cash for consulting services rendered in January. b. Issued common stock to investors for $18,000 cash. c. Purchased $21,400 of equipment, paying 25 percent in cash and owing the rest on a note due in two years. d. Received $8,500 cash for consulting services to be performed in February. e. Bought and received $1,200 of supplies on account. f. Received utility bill for January for $1,680, due February 15. g. Consulted for customers in January for fees totaling $18,400, due in February. h. Received $21,500 cash for consulting services rendered in December. i. Paid $600 toward supplies purchased in (e). Required: Indicate the accounts, amounts, and direction of the effects on the accounting equation under the accrual basis. A sample provided. (Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minus sign.)

Record the Year 1 transactions in general journal form.

The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable Numerator: Year 1 $ 48,814 26,497 4,180 128,303 50,206 3. Compute the Year 2 year-end debt ratio. 1 1 / 0 0 69,660 0 Year 2 Debt Ratio Denominator: $ 8,493 20,773 3,061 136,668 59,206 167,368 41,767 34,550 109, 135 = = Debt Ratio Debt ratio

Required information  [The following information applies to the questions displayed below.] Roth Incorporated experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $235,000 of merchandise on account. Sold merchandise that cost $164,000 for $326,000 on account. Collected $274,000 cash from accounts receivable. Paid $220,000 on accounts payable. Paid $46,000 of salaries expense for the year. Paid other operating expenses of $35,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule.   Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $31,200 0.01   0 to 30 13,000 0.05   31 to 60 2,600 0.10   61 to 90 2,600 0.20   Over 90 days 2,600 0.50     Required a. Record the given transactions in general journal form and post to T-accounts. Record the given transactions in general journal form.  Record entry…

The following transactions pertain to the operations of Ewing Company for Year 1: Acquired $22, 300 cash from the issue of common stock. Provided $19, 100 of services on account. Paid $14, 400 cash on accounts payable. Performed services for $40, 500 cash. Collected $5, 650 cash from accounts receivable. Incurred $7, 600 of operating expenses on account. Paid $24,000 cash for one year's rent in advance. Paid $7,200 cash dividend to the stockholders. Paid $2,000 cash for supplies to be used in the future. Recognized $34,500 of accrued salaries expense. Required: Classify the cash flows from these transactions as operating activities (OA), investing activities (IA), or financing activities (FA). Prepare a statement of cash flows. (There is no beginning cash balance.)

a.  On September 2nd, purchased equipment (in cash) for $15,400     b.  On September 5th, purchased inventory on account for $3,200     c.  On September 7th, paid employee wages of $24,550       d.  On September 22nd, borrowed $15,000 from a bank on a 5-year notes payable   e.  On September 28th, issued common stock to new stockholders for $35,000   f. On September 30th, paid a $2,550 cash dividend to stockholders                       1.  Prepare a SEPARATE journal entry for each transaction.

Assume the following: Lomo Engineering Company had the following transactions: Jan-01    Issued capital stock for $965,000. Jan-01          Purchased a Packaging Equipment for $20,000. Jan-01          Purchased an Insurance Policy (1 year) for $30,000. Jan-03      Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-05          Purchased $28,000 of inventory on account. Jan-07          Sold inventory costing $6,000 for $50,000 on account. Jan-11          Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15          Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17          Paid utility bills totaling $1,500. Jan-23          Paid wages for $13,000. Jan-25          Collect $8,000 in bank interest. Jan-30     Paid $12,590 due to income taxes. Chart of Accounts for Lomo Engineering Company Assets:   101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance…

Assume the following: Lomo Engineering Company had the following transactions: Jan-01    Issued capital stock for $965,000. Jan-01          Purchased a Packaging Equipment for $20,000. Jan-01          Purchased an Insurance Policy (1 year) for $30,000. Jan-03      Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-05          Purchased $28,000 of inventory on account. Jan-07          Sold inventory costing $6,000 for $50,000 on account. Jan-11          Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15          Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17          Paid utility bills totaling $1,500. Jan-23          Paid wages for $13,000. Jan-25          Collect $8,000 in bank interest. Jan-30     Paid $12,590 due to income taxes. Chart of Accounts for Lomo Engineering Company Assets:   101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance…

Assume the following: Lomo Engineering Company had the following transactions: Jan-01           Issued capital stock for $965,000. Jan-01          Purchased a Packaging Equipment for $20,000. Jan-01          Purchased an Insurance Policy (1 year) for $30,000. Jan-03          Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-05          Purchased $28,000 of inventory on account. Jan-07          Sold inventory costing $6,000 for $50,000 on account. Jan-11          Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15          Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17          Paid utility bills totaling $1,500. Jan-23          Paid wages for $13,000. Jan-25          Collect $8,000 in bank interest. Jan-30     Paid $12,590 due to income taxes.               Required: Record the above transactions in General Journal (Journal Entries). Record the transactions in General Ledger format (T-Accounts). Prepare a…

Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $1,700 of cash revenue. 2. Borrowed $2,700 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1, had a one-year term and an 6 percent annual interest rate. Required a. What is the amount of interest expense in Year 1? b. What amount of cash was paid for interest in Year 1? c. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (I) or decreases (D), or if there is no effect, leave the cell blank. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction has been recorded as an example. Complete this question by entering your answers…

Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000 cash from National Bank. 3. Earned cash revenues of $48,000 for performing services. 4. Paid cash expenses of $45,000. 5. Paid a $1,000 cash dividend to the stockholders. 6. Acquired an additional $20,000 cash from the issue of common stock. 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $53,000 cash to purchase land. 9. Determined that the market value of the land is $75,000. f. Determine the percentage of assets that were provided by investors, creditors, and earnings. Note: Round your answers to 2 decimal places. Assets Investors % Creditors % Earnings %

Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000 cash from National Bank. 3. Earned cash revenues of $48,000 for performing services. 4. Paid cash expenses of $45,000. 5. Paid a $1,000 cash dividend to the stockholders. 6. Acquired an additional $20,000 cash from the issue of common stock. 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $53,000 cash to purchase land. 9. Determined that the market value of the land is $75,000. e. Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would report on the Year 1 statement of cash flows. Note: Enter cash outflows as negative amounts. Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities

Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation. 1. Earned $1,800 of cash revenue. 2. Borrowed $2,400 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1, had a one-year term and an 8 percent annual interest rate. Required: a. What is the amount of interest expense in Year 1? b. What amount of cash was paid for interest in Year 1? c. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases, decreases, or increases and decreases each element of the financial statements. In the Statement of Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction has been recorded as an example. Complete this question…