Strand Group Inc started business in 2009 and for the year had the following transactions: 1. Started the company with a $100,000 investment. 2. Sold consulting services for $300,000, 25% on account, the remainder for cash 3. Paid wages of $70,000 4. Purchased a new computer for $15,000 (fair market value $20,000) for cash 5. Purchased supplies of $10,000 on account 6. Sold consulting services for $200,000, on account 7. Purchased office furniture for $30,000 by borrowing the money from a bank 8. Collected $100,000 from customers on account 9. Paid the bank 50% of the money it owed them 10. Sold consulting services for $50,000 forcash o 11. Paid dividends of $15,000 12. The company president purchased a personal residence for $150,000. (3, Paid the following expenses: a. Utilities- $20,000. b. Rent- $55,000. c. Insurance- $15,000. Account

Strand Group Inc started business in 2009 and for the year had the following transactions: 1. Started the company with a $100,000 investment. 2. Sold consulting services for $300,000, 25% on account, the remainder for cash 3. Paid wages of $70,000 4. Purchased a new computer for $15,000 (fair market value $20,000) for cash 5. Purchased supplies of $10,000 on account 6. Sold consulting services for $200,000, on account 7. Purchased office furniture for $30,000 by borrowing the money from a bank 8. Collected $100,000 from customers on account 9. Paid the bank 50% of the money it owed them 10. Sold consulting services for $50,000 forcash o 11. Paid dividends of $15,000 12. The company president purchased a personal residence for $150,000. (3, Paid the following expenses: a. Utilities- $20,000. b. Rent- $55,000. c. Insurance- $15,000. Account

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

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.7DC

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