Simpson Auto Body Repair purchased $19,460 of Machinery. The company paid $3,959 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. a. How will the purchase affect the accounting equation? liabilities by $ v total assets by a net amount of $ and b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)? v liabilities by $ v assets by $ and
Q: On the Income Statement, what would the Gross Profit be for Lion Consulting? Lion Consulting…
A: Gross Profit = Sales - Cost of Merchandise Sold Total Administrative Expenses = Office Salaries…
Q: The following trial balance was extracted from the books of JCV Ltd. as at 30 September 2019: $ $…
A: Income Statement The purpose of preparing the incomes statement is to know the net income / loss…
Q: Crispin Santos started a retail merchandise business on January 1, 2021. During the year ended…
A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…
Q: The following transactions apply to Pecan Co. for Year 1, its first year of operations: 1. Received…
A: The accounting equation states that assets equal to sum of liabilities and equity. The balance sheet…
Q: The following information was drawn from the accounting records of Chapin Company 1. On January 1,…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: On July 1 of the current calendar year, Olive Co. paid $8,700 cash for management services to be…
A: Increase in assets should be debited and decrease in assets should be credited. Increase in expenses…
Q: The following transactions occurred for the Falwell Company. 1. A three-year fire insurance policy…
A: Prepaid expense is for 30 months (36 months - 6 months) = $14,400×30/36 = $12000
Q: On July 31, 2019, the balances of the accounts appearing in the ledger of Serbian Interiors Company,…
A: Closing entries: These refer to the journal entries that are recorded at the end of an each…
Q: Santos started a retail merchandise business on January 1, 2021. During the year ended December 31,…
A: Inventory purchases can be computed by Adding payments to trade creditor and account payable balance…
Q: 9. During the current month, the company completed the transactions listed below. The owner invested…
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: Journalize and post the closing entries to their respective T accounts.
A: As you have posted multi subparts under a single sub-parts. Kindly resubmit the question along with…
Q: On the Income Statement, what would the Gross Profit be for Lion Consulting? Lion Consulting…
A: Income from operation means operating income. Operating income means profit earned from the primary…
Q: Omer provides the following data of his company Cargowings Pvt. ltd. for the month of December 2020.…
A: According to the above question, the following should be the…
Q: Consider the following transactions for Huskies Insurance Company: 1. Equipment costing $42,000 is…
A: 1.
Q: XYZ Company purchased $40,000 worth of store equipment from Libby Company by paying $8,000 cash and…
A: We know that the accounting equation Assets = Liabilities + Shareholders Equity
Q: Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $25,000 required…
A: Double entry system concept: As per this concept for every debit there should be a alternative…
Q: A company had the following transactions during the finst month of the year. Frepare an income slale…
A: Journal Entries - Journal Entries are recorded to enter transactions entered into by the company.…
Q: On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be…
A: The accounts may not be visible if you use accounting software or outsource your accounting, but…
Q: The following is the Trial Balance of Sonia HR Enterprises, a dealer in HR Software, as at 31st…
A:
Q: During December, Camp David Inc. purchased $5,000 of supplies for use in its business. At the end of…
A: Supplies in Hand and the unpaid amount on December 31 will be shown on the balance sheet.
Q: Credit sales P6,000,000 Cash sales 1,000,000 Collection from customers 5,600,000 Cash purchases…
A: Purchases under the cash basis is purchases that have been paid for during the year It includes cash…
Q: On the Income Statement, what would the Gross Profit be for Lion Consulting? Lion Consulting…
A: Gross Profit: The difference between the sales and the cost of goods sold is called gross profit.…
Q: The following transactions occurred during December 31, 2021, for the Falwell Company. 1. A…
A: Here The accounting period end on 31 December 2021. Therefore we have to record the expense related…
Q: The following account balances were included in the trial balance of Twain Corporation at June 30,…
A:
Q: On the Income Statement, what would the Gross Profit be for Lion Consulting? Lion Consulting…
A: Operating expenses are expenses which are incurred by the company for the main operations of the…
Q: During the period January to December 2020 the company completed the following transactions: Kay’s…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: Crispin Santos started a retail merchandise business on January 1, 2021. During the year ended…
A: A purchase is the practice of obtaining possession of a specific asset, property, item, or right by…
Q: The following transactions were taken from the books of Cartago Repair Shopfor the month of May…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by…
Q: ng Year 5, Pacilio Security Services experienced the following transactions: did the salaries…
A: Pacillio Security Services, Inc. General Journal, year 5 Date Account title Debit Credit…
Q: On January 1, 2010, the capital of Delta Company was P1,700,000 and on December 31, 2010, the…
A: Statements of changes in equity is the summary showing beginning and ending balances of share…
Q: My business has a Stores and Distribution expense of $1,542,425, 80% was paid in Cash ($1,233,940),…
A: Accrued Liability: An accrued liability is an expense that a business is yet to pay even after it…
Q: Could you answer both questions?
A: a. The effect of purchase on accounting equation: Increase total assets by a net amount of $15,383…
Q: The following summarized transactions occurred in December 2020 in Syco Co. Dec 1 Purchased…
A: The journal entry seems to be the process of recording or keeping track of any financial or…
Q: Total Lawn Services earned $110,000 of service revenue during 2018, Of the $110,000 eamed, the…
A: Under cash basis accounting, the revenue and expenses are recognised when cash transactions are…
Q: Following information is based on ABC business for the month of April 2020: Fees earned 7,000,…
A: Unearned revenue refers to the amount that is received during the period for which the services are…
Q: During the period January to December 2020 the company completed the following transactions:…
A: Journal Entries SR. NO. PARTICULAR DEBIT CREDIT 1 Cash 180,000 Truck 250,000…
Q: Allen Company received $12,000 cash from Gerry Corporation for cleaning services that Allen agrees…
A: Date Particulars Debit Amount Credit Amount June 1, Year 1 Bank A/c ......................Dr…
Q: On August 1, Worthy invested P3, 000 cash and P15, 000 of equipment in Expressions. On August 2,…
A: A journal entry is an act of recording or keeping track of some financial or non-financial activity.
Q: The following transactions apply to Pecan Co. for Year 1, its first year of operations: 1. Received…
A: The financial statements of the business include the income statement and balance sheet for the…
Q: During the first month of operations, the following transactions occur for Orison Supply Store. The…
A: The transaction, which is measurable in monetary terms, is an economic event with a third party…
Q: In the year ended 31 December 20X7 Bobby traded in for £3,430 a vehicle costing £6,000 on 1 November…
A: The Cost of Vehicle shall include both monetary and non monetary consideration.
Q: Able Company purchased a truck worth $20,000. The company paid $5,000 in cash and incurred a bank…
A: General ledger: It is the record of all the transactions of the business in the form of accounts.…
Q: During the period January to December 2020 the company completed the following transactions: Kay’s…
A: Note ;- Dear student, You asked multiple questions, as per rule we will answer only one.…
Q: Davidson, Inc. incurred the following transactions during the month of January. a. On January 3, a…
A: Following are the recording of transaction in cash receipts journal:
Q: the business is a trading business. for the period, it purchased goods for sale valued at 120,000.…
A: Sales: It refers to an activity in which goods or services are sold to the customers.
Q: Blum Services has the following unadjusted balances at year-end. Cash $12,900 Prepaid insurance…
A: Accounting Worksheet: Accounting Worksheet is a 10 column statement, where the summary of all the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year). A. A business sets up a line of credit with a supplier. The company purchases $10,000 worth of equipment on credit. Terms of purchase are 5/10, n/30. B. A customer purchases a watering hose for $25. The sales tax rate is 5%. C. Customers pay in advance for season tickets to a soccer game. There are fourteen customers, each paying $250 per season ticket. Each customer purchased two season tickets. D. A company issues 2,000 shares of its common stock with a price per share of $15.Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
- Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows: ab. Merchandise Inventory at December 31, 104,565. c. Wages accrued at December 31, 934. d. Supplies inventory (on hand) at December 31, 755. e. Depreciation of store equipment, 4,982. f. Depreciation of office equipment, 1,531. g. Insurance expired during the year, 935. h. Rent earned, 2,450. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 16.
- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Accrued Interest On May 1, the Garnett Corporation wanted to purchase a $200,000 piece of equipment, but Garnett was only able to furnish $75,000 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $200,000 from the Peoples National Bank on a 3-year, 4% note. Required: If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31?For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.