On August 1 Company purchased supplies on account for $ 15,000. On August 31, Company purchased additional supplies for $ 5,000 for cash and paid one third of the balance due on August 1, The August 31 transaction wil A. None of the options are correcta B. Decrease Equity by $ 10,000 C. Increase Expenses by $ 10,000 D. Decrease Assets by $ 10,000 E. Increase Liabilities by $ 10.000
Q: Events Affecting the Year 1 Accounting Period 1. Acquired $77,000 cash from the issue of common…
A: As per accounting equation concept: Assets = Liabilities + Capital In absence of information it has…
Q: X Company purchased Supplies for $12,000. It paid $7,000 in cash and agreed to pay the remaining…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: View Policies Current Attempt in Progress Transactions made by Pharoah Ltd, a law fitm. for the onth…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Date Transaction March 1 Caleb invested P50,000 cash and P20,000 equipment to his Kaizen Consultancy…
A: The journal entries are prepared by a company to record all the non-economic and economic…
Q: sugey communication has a balance at december 31 cash $37,000 office equipment $51,250 building…
A: Balance sheet It is a part of the financial statements which shows any company’s standings with…
Q: The following information relates to Zync Inc. Calculate the ending balance of assets on December…
A: Net Equipment = Beginning value of Equipment + Equipment purchased - Depreciation = $7,000 + $4,500…
Q: Assume current assets totaled $120,000 and the current liabilities totaled $80,000 before the…
A:
Q: Events Affecting the Year 1 Accounting Period 1. Acquired $77,000 cash from the issue of common…
A: As per accounting equation concept: Assets = Liabilities + Capital
Q: 14. At October 1, Arcade Fire Enterprises reported owner's equity of $35,000. During October, no…
A: Ans. Drawings is referred to as the capital withdrawn from the business from total equity in the…
Q: Journalize the following transactions for Blossom Company. Sept. 1 Purchased supplies for $1,000…
A: Journal: Journal is the book of original entry. Journal consists of the day-to-day financial…
Q: Sept. 2 Issued capital stock in exchange for $900,000 cash. Sept. 4 Purchased land and a building…
A: A corporation is nothing but a group of people working for the same firm or company and running…
Q: March 1 Invested OMR 10,000 as capital March 3 Purchased office fumiture for OMR 3,000 from Blossom…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Kai Co paud $18,000 of accounts payable owed to Coat Co by giving cash of 4,500 and isusing a note…
A: Correct answer is Option (a) i.e. not change total assets, liabilities, or owner’s equity.
Q: Events Affecting the Year 1 Accounting Period 1. Acquired $77,000 cash from the issue of common…
A:
Q: The Austin Land Company sold land for $59,750 in cash. The land was originally purchased for…
A: Answer) Total Assets Increase by $ 14,000 Total Liabilities Decrease by $ 13,690…
Q: Record the following selected transactions for April. a. Received $18,000 from sale of common…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: The following trial balance was drawn up from the books of A Merchant at 31 December 20Х0 £ £…
A: You have wrong gross profit amount , by mistake you have added 1 in the end of gross profit amount .…
Q: X Company purchased Supplies for $12,000. It paid $7,000 in cash and agreed to pay the remaining…
A: When a transaction takes place in the company, it will affect the assets and liabilities of the…
Q: On October 17, Nikle Company purchased a building and a plot of land for $482,500. The building was…
A: In the context of the given question, we are required to prepare the journal entry. Journal entry:…
Q: inancial The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 20Y5,…
A: Income statement forms a part of financial statements and is prepared to show the total revenues and…
Q: Date Transaction Oct-01 Cash of $10,000 was invested in Umbrella Corporation in exchange for 10,000…
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger…
Q: Date Transaction Oct-01 Cash of $10,000 was invested in Umbrella Corporation in exchange for 10,000…
A: Accounting equation - Total Assets = Liabilities + Owners equity Total assets must be equal to…
Q: Journalizing transactions, posting to T-accounts, and preparing a trial balance Consider the…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: The following events apply to Equipment Services Inc. in its first year of operation: 1. Acquired…
A: The question is based on the concept of Business Accounting.
Q: On November 1, Year 1, Falloch, Incorporated paid $3,600 cash for a contract allowing the company to…
A: Cash flow from operating activities is a part of the cash flow statement and it includes transection…
Q: Diamond, Inc. had the following transactions during June: Performed services for $3,000 on account;…
A: Services rendered on account does not result in cash flows to an entity. The cash inflows occur when…
Q: Sunflower Wholesale Company For the month ended August 1, 2015 The following transactions took place…
A: Explanation - There are three statements of the organization which show different accounting…
Q: Date Transaction Description July 1 Began business by making a deposit in a company bank account of…
A: The journal entries are passed to analyze the effect of transactions in form of debit or credit of…
Q: Sledge Rental Services was established ön Jüné 1, 202: following transactions töök place dun che…
A: The financial statements of the business includes the income statement and the balance sheet of the…
Q: Date Transaction Description July 1 Began business by making a deposit in a company bank account…
A: 1. Insurance Expired = 4800/12 = 400 2. Supplies Used = 450-250 = 200
Q: 2. In Year 2, Chalon Company records the payment of $450 cash for an expense accrued in Year 1 and…
A: Payment for the last year will be considered as liabilities payment and expenses during the year are…
Q: Below is the Trial Balance for TK & Company Limited as at 31 December 2020. TK & Company Limited…
A: Following are the requisite financial statements It is assumed that all the figures in the trial…
Q: Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting…
A: Final Accounts: Final accounts provide gross profit and net profit of an enterprise and present…
Q: The following are several transactions for Halpin Advertising Company.a. Purchased $1,000 of…
A: Revenue and costs are recognized and documented as they occur under accrual accounting, but cash…
Q: The Puchita CO. Transactions Date Accounting Transaction Thai Baht Pakanan invested cash in company…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Microsoft Co., During October the following transactions occurred: 1. Purchased equipment on…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: Listed below are cight transactions the Foster Corporation imade during November: LO3 EXERCISE 3.9…
A: Solution: Introduction: Accounting cycle means a process to record, analyze, accounting of all…
Q: Listed below are eight transactions the Foster Corporation made during November:a. Issued stock in…
A: Transaction Net income Assets Liabilities Equity a Increase Increase
Q: a. Received $18,000 from sale of common stock. b. Purchased equipment for $27,000, paying $10,000 in…
A: A journal entry is a record of the business transactions in the accounting books of a business.
Q: ransactions that happened for the month of March. Journalize the transactions. Accounts Receivable…
A: The journal keeps the record for the transaction of the business as and when they are incurred. The…
Q: ota Company experienced the following events during Year 2: Acquired $15,000 cash from the issue of…
A: "Since you have posted a question with multiple sub- parts, we will solve only first three sub-…
Q: The following transactions occurred during March. The first month of operations for Quality…
A: Notes can be defined as a financial security which is issued for the purpose of raising funds.…
Q: The following accounting events apply to Waddell Company’s Year 2 fiscal year: Jan. 1…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: The following events occurred Gargantuan's first year of operations: 1. Acquired $36,000 cash from…
A: The cash flow statement is prepared to determine the cash generated or used by the business. The…
Q: e following transactions took place during the month of August. a. Owners invested P50,000 cash in…
A: Statement of change in equity is equal to the statement of changes in owners' equity for a sole…
Q: On September 1, Marina, Inc. purchased $500,000 worth of merchandise inventory on credit. On…
A: Journal : Recording of a business transactions in a chronological order.
Step by step
Solved in 2 steps
- Analyzing Transactions. Using the analytical framework, indicate the effect of the following related transactions of a firm. a. January 1: Issued 10,000 shares of common stock for 50,000. b. January 1: Acquired a building costing 35,000, paying 5,000 in cash and borrowing the remainder from a bank. c. During the year: Acquired inventory costing 40,000 on account from various suppliers. d. During the year: Sold inventory costing 30,000 for 65,000 on account. e. During the year: Paid employees 15,000 as compensation for services rendered during the year. f. During the year: Collected 45,000 from customers related to sales on account. g. During the year: Paid merchandise suppliers 28,000 related to purchases on account. h. December 31: Recognized depreciation on the building of 7,000 for financial reporting. Depreciation expense for income tax purposes was 10,000. i. December 31: Recognized compensation for services rendered during the last week in December but not paid by year-end of 4,000. j. December 31: Recognized and paid interest on the bank loan in Part b of 2,400 for the year. k. Recognized income taxes on the net effect of the preceding transactions at an income tax rate of 40%. Assume that the firm pays cash immediately for any taxes currently due to the government.Financial statements Outlaw Realty, organized August 1. 20Y7, is owned and operated by Julie Baxter. How many errors can you find in the following financial statements for Outlaw Realty, prepared after its first month of operations? Assume that the cash balance on August 31, 20Y7, is $51,600 and that cash flows from operating activities is reported correctly.A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?
- The transactions completed by PS Music during June 20Y5 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 in exchange for common stock 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 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 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. 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, 20Y5. 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, 20Y5. 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. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: Instructions 1. Enter the July 1, 20Y5, 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, 20Y5.Transactions using accrual accounting Terry Mason organized The Fifth Season at the beginning of February 20Y4. During February, The Fifth Season entered into the following transactions: a. Terry Mason invested $15000 in The Fifth Season in exchange for common stock. h. Paid $2,700 on February 1 for an insurance premium on a 1-year policy. c. Purchased supplies on account. $900. d. Received fees of $28500 during February. e. Paid expenses as follows: wages. $10,800; rent, $3,200; utilities, $1,400; and miscellaneous, $1,600. f. Paid dividends of $4,000. Record the preceding transactions using the integrated financial statement framework. Alt er each transaction, you should enter a balance for each item.The Accounting Equation Using the accounting equation, answer each of the following independent questions. Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owners equity at the end of the year? Chapman Inc. doubles the amount of its assets from the beginning to the end of the year. Liabilities at the end of the year amount to $40,000, and owners equity is $20,000. What is the amount of Chapmans assets at the beginning of the year? During the year, the liabilities of Dixon Enterprises triple in amount. Assets at the beginning of the year amount to $30,000, and owners equity is $10,000. What is the amount of liabilities at the end of the year?
- Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.The transactions completed by PS Music during June 2018 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 Musk in exchange for common stock 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 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 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 lage 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. 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, 2018. 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, 2018. 31. Received 3,000 for serving as a disc jockey for a party. July 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 2018 (all normal balances), are as follows: 11 Cash 3,920 41 Fees Earned 6,200 12 Accounts Receivable 1,000 50 Wages Expense 400 14 Supplies 170 51 Office Rent Expense 800 15 Prepaid Insurance 52 Equipment Rent Expense 675 17 Office Equipment 53 Utilities Expense 300 21 Accounts Payable 250 54 Music Expense 1,590 23 Unearned Revenue 55 Advertising Expense 500 31 Common Stock 4,000 56 Supplies Expense 180 33 Dividends 500 59 Miscellaneous Expense 415 Instructions 1. Enter the July 1, 2018, 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, 2018.
- Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 20Y8. are as follows: a. Wages accrued but not paid at December 31. $2150 b. Depreciation of equipment during the year. $12500 c. Laundry supplies on hand at December 31. $1,500 d. Insurance premiums expired. $4600 Instructions 2. Prepare an income statement and statement of stockholders equity for the year ended December 31. 20Y8. The common stock balance as of January 1. 20Y8. was $25000. The retained earnings balance as of January 1, 20Y8, was $101,500.Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 20Y8, are as follows: a. Wages accrued but not paid at December 31. $2150 b. Depreciation of equipment during the year. $12500 c. Laundry supplies on hand at December 31. $1,500 d. Insurance premiums expired. $4600 Instructions Prepare a statement of cash flows for the year ended December 31. 20Y8.