Problem 1 On 2 May 2022, Elon Musk began a new business, called Space W Inc., company producing food in pills by transforming the air and plants, with the idea of delivering low cost food to all the world citizens. The following transactions were completed by the business during May: 2 May Issued to Elon 1,000 shares of capital stock in exchange for his investment of 5,120,000€ cash. 3 May Purchased land and a building for 1,530,000€ paying 800,000 cash and signing a note payable for the balance. The interest rate for the Note payable is 3% on annual terms, and it will be paid at maturity which will be may 3rd 2024. The land was considered to be worth 630,000€ and the building the remaining amount. 4 May Purchased robots for 4,000,000€ in order to be prepared for the production, and paid cash. 5 May Sold pills for 500,000€ to be paid at the end of the month to the customer Prometeus. 31 May Collected the Accounts Receivable in full. The account titles used by Space W Inc. are as follows: Accounts Receivable Cash Building Capital Stock Notes Payable Land Machines Accounts Payable Accounts receivable
Problem 1
On 2 May 2022, Elon Musk began a new business, called Space W Inc., company producing food in pills by transforming the air and plants, with the idea of delivering low cost food to all the world citizens. The following transactions were completed by the business during May:
2 May Issued to Elon 1,000 shares of capital stock in exchange for his investment of 5,120,000€ cash.
3 May Purchased land and a building for 1,530,000€ paying 800,000 cash and signing a note payable for the balance. The interest rate for the Note payable is 3% on annual terms, and it will be paid at maturity which will be may 3rd 2024. The land was considered to be worth 630,000€ and the building the remaining amount.
4 May Purchased robots for 4,000,000€ in order to be prepared for the production, and paid cash.
5 May Sold pills for 500,000€ to be paid at the end of the month to the customer Prometeus.
31 May Collected the Accounts Receivable in full.
The account titles used by Space W Inc. are as follows:
Accounts Receivable Cash Building Capital Stock Notes Payable Land
Machines Accounts Payable Accounts receivable
Instructions:
(1) Record the
|
Date |
Account Titles |
Debit |
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
