PZ is a consultant. During the month of October 2022, he completed the following transactions. Oct-01 Began his business by investing P500,000 on the business checking account 2 Paid P120,000 rent for one year beginning October 1 2 Acquire second hand vehicle for business operation. Acquisition cost P150.000: Residual Value P60.000: Useful Life 3 years. 2 Purchase furniture P100,000 paying P20,000 cash and signed a note for the remaining amount Residual value of P10,000: Useful life of 10 years. 3 Received cash from client for service rendered. P25,000 5 Billed client for service rendered, P15,000 6 Purchase supplies from National Bookstore, P12,000 14 Received cash from previously billed customer 15 Paid P7,500 salary to employee 16 Paid insurance for one year, P12,000 20 Received bill from advertiser, P5,000 25 Billed client for service rendered, P35,000 28 Paid mechanic for repairs and maintenance of vehicle. P5,000 30 Received cash from client for service rendered, P15,000 31 Paid P7,500 salary to employee 31 Received utility bills, meralco P4,500, water district P500, telephone P2.500 31 The owner withdrew P20,000 for personal use

PZ is a consultant. During the month of October 2022, he completed the following transactions. Oct-01 Began his business by investing P500,000 on the business checking account 2 Paid P120,000 rent for one year beginning October 1 2 Acquire second hand vehicle for business operation. Acquisition cost P150.000: Residual Value P60.000: Useful Life 3 years. 2 Purchase furniture P100,000 paying P20,000 cash and signed a note for the remaining amount Residual value of P10,000: Useful life of 10 years. 3 Received cash from client for service rendered. P25,000 5 Billed client for service rendered, P15,000 6 Purchase supplies from National Bookstore, P12,000 14 Received cash from previously billed customer 15 Paid P7,500 salary to employee 16 Paid insurance for one year, P12,000 20 Received bill from advertiser, P5,000 25 Billed client for service rendered, P35,000 28 Paid mechanic for repairs and maintenance of vehicle. P5,000 30 Received cash from client for service rendered, P15,000 31 Paid P7,500 salary to employee 31 Received utility bills, meralco P4,500, water district P500, telephone P2.500 31 The owner withdrew P20,000 for personal use

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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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?
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.
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 seller
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?
Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions: a. Sold a warehouse for 750,000. b. Reported a profit of 100,000. c. Retired long-term bonds. d. Paid cash dividends of 350,000. e. Obtained a mortgage for a new building from a local bank. f. Purchased a new robotic system. g. Issued a long-term note payable. h. Purchased a 40% interest in a company. i. Reported a loss for the year. j. Negotiated a long-term loan. Required: Classify each of these transactions as an operating activity, an investing activity, or a financing activity. Also, indicate whether the activity is a source of cash or a use of cash.
Domingo 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.