Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a carrepair shop in the Boston region. They began business on January 1, 2021 with the followingtransactions occurred during the month of January. Prepare journal entries, T-accounts, and abalance sheet as of January 31, 2021 for A&D. Organize your T-accounts by following the order ofassets, liabilities, equity, revenues, and expenses. Each T-account should start with a beginningbalance and end with an ending balance for each reporting period. (Note: for T-accounts, you may usea table like the one below. Create a table using the "Insert" or "Table" function in the ribbon. Cells can bemerged from the "Table" function in the ribbon. You can access more format functions when you click thethree dots on the right side above the text entry box.)Name of account 1Name of account 2Name of account 31. (a) Adam contributed $100,000 to A&D in exchange for 1,000 shares of A&D common stock. (b)David transferred to A&D title to a shop space, valued at $100,000, in exchange for 1,000 sharesof A&D common stock.2. A&D bought tools and supplies for $9,000 from X Corp., charging the purchase to its account.3. A&D ordered $2,000 in a used equipment from a supplier (Y Corp.). The terms of the orderpermitted A&D to cancel the order without any obligation whatsoever up until the time ofdelivery.4. A&D borrowed $8,000 from a local bank, a one-year loan with 10% annual interest rate. Theloan agreement specifies that interest and principle will be paid on the loan's maturity date.S. Y Corp. delivered the equipment A&D ordered. A&D paid Y Corp. for the equipment when it wasdelivered.6. A&D paid X Corp. $3,000 on its account.7. A&D realized that it ordered one repair tool too many from X Corp.. It sold the extra tool to alocal garage (Z LLC) for $800, which is what A&D paid for it. Z LLC gave A&D a note, payable byZ LLC to A&D in 30 days.

Name: Adam and David are two entrepreneurs who agreed to form a corporation
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Description: Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a carrepair shop in the Boston region. They began business on January 1, 2021 with the followingtransactions occurred during the month of January. Prepare journ

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Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a car repair shop in the Boston region. They began business on January 1, 2021 with the following transactions occurred during the month of January. Prepare journal entries, T-accounts, and a balance sheet as of January 31, 2021 for A&D. Organize your T-accounts by following the order of assets, liabilities, equity, revenues, and expenses. Each T-account should start with a beginning

Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a car repair shop in the Boston region. They began business on January 1, 2021 with the following transactions occurred during the month of January. Prepare journal entries, T-accounts, and a balance sheet as of January 31, 2021 for A&D. Organize your T-accounts by following the order of assets, liabilities, equity, revenues, and expenses. Each T-account should start with a beginning

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter6: Accounting Periods And Other Taxes

Section: Chapter Questions

Problem 5MCQ: Which of the following entities is required to report on the accrual basis? An accounting firm...

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For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account…
For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1.           The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600.           Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account…
For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1.           The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600.           Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account…
For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1.           The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600.           Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account…