Homework Help is Here – Start Your Trial Now!
Business
Accounting
Question2. Herrold Consulting incorporated on February 1, 2011. The company engaged in the following transactions during its first month of operations: Feb. 1 Issued capital stock in exchange for $750,000 cash. Feb. 5 Borrowed $50,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance. Feb. 11 Purchased office supplies for $600 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18. Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store ređuced Herrold's outstanding balance by $100. Feb. 22 Performed consulting services for $6,000 cash. Feb. 24 Billed clients $9,000. Feb. 25 Paid salaries of $5,000. Feb. 28 Paid the entire outstanding balance owed for office supplies purchased on February 11. A partial list of the account titles used by the company includes: Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Land

Question2. Herrold Consulting incorporated on February 1, 2011. The company engaged in the following transactions during its first month of operations: Feb. 1 Issued capital stock in exchange for $750,000 cash. Feb. 5 Borrowed $50,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance. Feb. 11 Purchased office supplies for $600 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18. Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store ređuced Herrold's outstanding balance by $100. Feb. 22 Performed consulting services for $6,000 cash. Feb. 24 Billed clients $9,000. Feb. 25 Paid salaries of $5,000. Feb. 28 Paid the entire outstanding balance owed for office supplies purchased on February 11. A partial list of the account titles used by the company includes: Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Land

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter3: Processing Accounting Information
Section: Chapter Questions
Problem 3.3AP
See similar textbooks
icon
Related questions
Question

Required
a. Prepare journal entries, including explanat
b. ions, for the above transactions.

Must solve B part. 

Question2. Herrold Consulting incorporated on February 1, 2011. The company engaged in the following transactions during its first month of operations: Feb. 1 Issued capital stock in exchange for $750,000 cash. Feb. 5 Borrowed $50,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance. Feb. 11 Purchased office supplies for $600 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18. Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store reduced Herrold's outstanding balance by $100. Feb. 22 Performed consulting services for $6,000 cash. Feb. 24 Billed clients $9,000. Feb. 25 Paid salaries of $5,000. Feb. 28 Paid the entire outstanding balance owed for office supplies purchased on February 11. A partial list of the account titles used by the company includes: Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Land Client Service Revenue Building Advertising Expense Office Equipment Salaries Expense
Transcribed Image Text:Question2. Herrold Consulting incorporated on February 1, 2011. The company engaged in the following transactions during its first month of operations: Feb. 1 Issued capital stock in exchange for $750,000 cash. Feb. 5 Borrowed $50,000 from the bank by issuing a note payable. Feb. 8 Purchased land, building, and office equipment for $600,000. The value of the land was $100,000, the value of the building was $450,000, and the value of the office equipment was $50,000. The company paid $300,000 cash and issued a note payable for the balance. Feb. 11 Purchased office supplies for $600 on account. The supplies will last for several months. Feb. 14 Paid the local newspaper $400 for a full-page advertisement. The ad will appear in print on February 18. Feb. 20 Several of the inkjet printer cartridges that Herrold purchased on February 11 were defective. The cartridges were returned and the office supply store reduced Herrold's outstanding balance by $100. Feb. 22 Performed consulting services for $6,000 cash. Feb. 24 Billed clients $9,000. Feb. 25 Paid salaries of $5,000. Feb. 28 Paid the entire outstanding balance owed for office supplies purchased on February 11. A partial list of the account titles used by the company includes: Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Land Client Service Revenue Building Advertising Expense Office Equipment Salaries Expense
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Basic Accounting Terms
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS