ABC Company started its business operations on November 2, 2021. The following were the transactions during the month: The owner made a cash investment to the business amounting to P2,000,000. Nov. 2, 2021 Obtained a P500,000 loan and issues a promissory note to Nov. 5, 2021 Citibank. Nov. 8, 2021 Acquired land costing P1,000,000 on cash basis. Nov.16, 2021 Rendered services worth P1,200,000 on account, Nov.30, 2021 Paid salaries of the workers amounting to P280,000. How much is the owner's capital balance at the end of its first month of operation?
Q: January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10 %…
A: The Accounting cycle is completed, being starting from identification of financial transactions to…
Q: On December 31, a partnership has total partnership capital as follows: Partner #1,…
A: Introduction Partnership is the association of two or more persons who have agreed to share profit…
Q: A company provides each of its directors with a car. It has purchased these at £35,000 each. After 4…
A: Residual Value after 4 years = Cost x 40% = £35000 x 40% = £14000 Annual Rate of Depreciation = 1 -…
Q: Explain the fuel benefit and the income tax and national insurance contributions consequences of an…
A: Where the employer pays for any fuel used privately by the employee, there is an additional scale…
Q: to reflect the fact that DD could no longer devote any time to the store’s operations. The new…
A: partnership is considered we one of the most easiest way of doing business which involved agreement…
Q: ABC Company started its business operations on November 2, 2021. The following were the transactions…
A: Owner capital balance means the amount that belong to the owner of the business. It increase with…
Q: explain why payback period is not a preferred method
A: The payback period is a period in which the total costs of an investment are recovered through cash…
Q: Question 15 The accountant's work sheet: serves as the basis for completing the adjusting process B…
A: Solution Accountant worksheet is a worksheet which is used with in the accounting department to…
Q: otal assets of the Company are $81000 and its owner's equity is $61000. What is the amount of it
A: Liabilities = Assets - Owner's equity
Q: 15. Preliminary plans are under way for the construction of a new stadium for a major league…
A: Break even point means the situation where there is no profit no loss. It means that a point where…
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 31,000 rolls annually…
A: In make or buy decision making, that option should be adopted which is less costly.
Q: Using the declining-balance method, complete the table as shown (twice the straight-line rate):…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new…
A: “The minimum amount due on a credit card is the minimum amount that we are required to pay before…
Q: A. Calculate the differential Cost ol ACme? B. Should Almond Treats make or buy the almond cereal?
A: This whole question is based on the concept Relevant cost What is Relevant cost? In simple words,…
Q: he next fiscal year. Expenditures—Capital…
A: A journal entry is the act of recording or keeping track of any financial or non-financial action.…
Q: Explain double taxation, its elements, and its types
A: Governments in practically every country throughout the world levy forced charges on persons or…
Q: Determine the net income (loss) of ABC Company on its first month of operation.
A: Net income refers to the amount of profit earned by the company from selling its goods or providing…
Q: Question 13: Match each mandatory deduction with its description. Federal income tax Provides…
A: Solution Tax liability is the liability in which a person,business and company are paid an amount…
Q: Q.No. 2 Abuhatim LLC has given the following particulars. You are required to prepare a cash budget…
A: Cash budget refers to the statement record of cash flows of business. It record all cash outflows…
Q: The functional presentation of expenses in the income statement is usually shown by grouping into…
A: Under functional presentation, the expenses are categorized in the income statement on the basis of…
Q: Sybil is a self-employed artist who uses 10% of her residence as a studio. The shudio portion of her…
A: The tax deduction is the expenses that are allowed to be subtracted from the taxable income and…
Q: CBA Ltd sells smartphones. The following information relates to its best-selling model Tex for the…
A: FIFO states that the inventory purchased first would be sold first by the company. Whereas, LIFO…
Q: In June 2021, A.B. Malinaw established a photography business. Transactions that transpired during…
A: Transaction No. Assets = Liabilities + Equity Cash Accounts Receivable Photo…
Q: Financial info to be used by first names with initials (D, T, L, U) Auga Company Ltd…
A: Balance Sheet- The balance sheet is a financial statement that shows an organization's assets,…
Q: On March 1, 2021, Brown-Ferring Corporation issued $100.0 million of 15% bonds, dated January 1,…
A: Accrued Interest- In accounting, accrued interest refers to the sum of interest that has been…
Q: 1d. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…
A: As per MACRS depreciation table, the depreciation for the second year considering asset belongs to…
Q: A non profit organization has two programs (A and B), each of which has its own fund. The…
A: Accounting equation is the one which denotes that for every transaction, one or two sides of…
Q: Consider the two mutually exclusive investment projects given in the table below for which MARR =…
A: MARR- 15% Project A Project B 0 $ (4,000) $ (9,500) 1 $ 2,000 $…
Q: The functional presentation of expenses in the income statement is usually shown by grouping into…
A: Solution 1: True, The functional presentation of expenses in the income statement is usually shown…
Q: An asset is purchased for $90,000. It is expected to have a useful life of six years and a salvage…
A: Solution... Cost of asset = $900,000 Salvage value = $18,000 Life = 6 years
Q: Khaki shorts pairs Khaki pants pairs
A: Calculation of Contribution margin per pair of shorts per minute and giving rank to the products…
Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of…
A: Interest on loan payable is based on the loan amount, interest rate, and total duration of the loan…
Q: Viktor Hovland purchases land with natural gas reserves for $500,000. He expects to extract 2,000…
A:
Q: 19. $ How much are the current assets? 20. $ How much are the total assets? 21. $ How much are the…
A: Answer:
Q: The past year's income statement of a business showed a bottom line of P100,000 net profit. What…
A: Net profit = Revenue + other income- Expenses
Q: 1c. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…
A: First of all depreciation rate under straight line method will be calculated: Depreciation rate…
Q: On a recent trip to Hongkong, Brian Santos, sales manager of Micro- electronic Devices, took his…
A: Income Statement- The income, expenses, and profits of a corporation are shown in income statements…
Q: Question #2 - Post the transactions to the Ledger PLEASEE HELP ME HURRU.I AM IN DESK Wanda, the…
A:
Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…
A: Transfer price is a price at which a transaction of two related divisions of the same corporation…
Q: a) Carefully explain the major differences between the Keynes' and Fisher's models of consumption.…
A: You have posted multiple-part questions, so as per Bartleby policy only the first three interlinked…
Q: A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone.…
A: Annual profit = Contribution margin - Annual overhead costs where, Contribution margin = (Sales per…
Q: Profit will by $
A: This whole question is based on the concept Relevant cost What is Relevant cost? In simple words,…
Q: An asset is purchased for $90,000. It is expected to have a useful life of six years and a salvage…
A: Introduction: Depreciation: Decreasing value of fixed Assets over its useful life period called as…
Q: The assets and liabilities of Thompson Computer Services at March 31, the end of the current year,…
A:
Q: John Lee Company Income Statement For the year ended Decembet 31, 2021 Revenues 5,400,000 Cost of…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: equirements Reconstruct the company’s comparative balance sheet for 2020/2021 using the information…
A: Comparative balance sheet A comparative balance sheet is very useful as it provides insights to the…
Q: ne that in the first step of t Corp. will exchange $6,071 stock plus land with a fair 6,714 for all…
A: The answer has been mentioned below.
Q: Prepare the cash budget with the projected income statement of ABC Company from March to June
A: Cost of Goods Sold = 100000 Gross Profit = 20% Based on Sales Sales = 20% i.e 1/5 on Sales i.e. 1/4…
Q: Required information [The following information applies to the questions displayed below.] In 2021,…
A: Tax Deduction refer to the claim made to reduce your taxable income ,arising from various investment…
Q: This functions as a financial diary of a business and ensures that the double-entry bookkeeping…
A: Solution 1: "Trial balance" functions as a financial diary of a business to ensure that the double…
Step by step
Solved in 2 steps
- Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.
- Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1.Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1.Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1.Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2.Received 1,000 cash from customers on account. 3.On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3.Paid 250 to creditors on account. 4.Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5.Purchased office equipment on account from Office Mart, 7,500. 8.Paid for a newspaper advertisement, 200. 11.Received 1,000 for serving as a disc jockey for a party. 13.Paid 700 to a local audio electronics store for rental of digital recording equipment. 14.Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22.Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23.Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27.Paid electric bill, 915. 28.Paid wages of 1,200 to receptionist and part-time assistant. 29.Paid miscellaneous expenses, 540. 30.Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31.Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2019.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Music's checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music: store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 cash from customers on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 to creditors on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 11. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31. Withdrew l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts receivable 1,000 14 Supplies 170 15 Prepaid insurance 17 Office Equipment 21 Accounts payable 250 23 Unearned Revenue 31 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies Expense 300 54 music Expense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1.Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2.Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3.Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4.Prepare an unadjusted trial balance as of July 31, 2019.
- Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days after delivery. At what point would the event be recorded in Taylors accounting system? When Taylor signs the agreement with the seller When Taylor receives an invoice (a bill) from the setter When Taylor receives the asset from the seller When Taylor pays $2.000 cash to the sellerDomingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
- Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange. B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed. C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid. E. The electric bill in C is paid.Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?