HW2

.pdf

School

Pennsylvania State University, World Campus *

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Course

471

Subject

Accounting

Date

Apr 3, 2024

Type

pdf

Pages

Uploaded by JudgeFlagRaven37

1/24/24, 12:04 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmludFVSTCI6Imh0dHBzOlwvXC9lenRvLm1oZWR1Y2F0aW9uLmNv… 1/4 Score: 100/100 Points 100 % [The following information applies to the questions displayed below.] The following are independent situations. a. A new company is formed and sells 100 shares of $1 par value stock for $12 per share to investors. b. A company purchases for $18,000 cash a new delivery truck that has a list, or sticker, price of $21,000. c. A women’s clothing retailer orders 30 new display stands for $300 each for future delivery. d. A company orders and receives 10 personal computers for oﬃce use for which it signs a note promising to pay $25,000 within three months. e. A construction company signs a contract to build a new $500,000 warehouse for a corporate customer. At the signing, the corporation writes a check for $50,000 to the construction company as the initial payment for the construction (receiving construction in progress). Answer from the standpoint of the corporation (not the construction company). f. A publishing firm purchases for $40,000 cash the copyright (an intangible asset) to a manuscript for an introductory accounting text. g. A manufacturing firm declares a $100,000 cash dividend to be distributed to stockholders next period. h. A company purchases a piece of land for $50,000 cash. An appraiser for the buyer values the land at $52,500. i. A manufacturing company acquires the patent (an intangible asset) on a new digital satellite system for television reception, paying $500,000 cash and signing a $400,000 note payable due in one year. j. A local company is a sole proprietorship (one owner); its owner buys a car for $10,000 for personal use. Answer from the local company’s point of view. k. A company purchases 100 shares of Apple Incorporated common stock as an investment for $5,000 cash. l. A company borrows $1,000 from a local bank and signs a six-month note for the loan. m. A company pays $1,500 principal on its note payable (ignore interest).

1/24/24, 12:07 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmludFVSTCI6Imh0dHBzOlwvXC9lenRvLm1oZWR1Y2F0aW9uLmNv… 2/5 11. Award: 9.09 out of 9.09 points Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $ 6,400 Accounts payable $ 9,600 Accounts receivable 32,000 Unearned revenue 3,840 Supplies 1,500 Long-term note payable 48,500 Equipment 9,500 Common stock 1,600 Land 7,400 Additional paid-in capital 7,000 Building 25,300 Retained earnings 11,560 a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash. b. Received a $600 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $850 for rent in January. d. Received $7,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $400 to be paid in February. f. Ordered $960 in supplies. g. Paid $2,300 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. i. Paid $16,500 in wages to employees who worked in January. j. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f) . l. Paid $320 in interest expense on the long-term note payable. Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).

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