The following transactions occurred during March, the first month of operations for Quality Galleries, Incorporated: • • • Capital stock was issued in exchange for $358,000 cash. Purchased $176,000 of equipment by making a $58,000 cash down payment and signing a note payable for the balance. Made a $34,000 cash payment on the note payable from the purchase of equipment. Sold a piece of equipment for cash of $16,000. The equipment was sold at cost, so there is no gain or loss on the sale. What are total assets of Quality Galleries at the end of March? Multiple Choice $442,000 $476,000 $160,000 $282,000

The following transactions occurred during March, the first month of operations for Quality Galleries, Incorporated: • • • Capital stock was issued in exchange for $358,000 cash. Purchased $176,000 of equipment by making a $58,000 cash down payment and signing a note payable for the balance. Made a $34,000 cash payment on the note payable from the purchase of equipment. Sold a piece of equipment for cash of $16,000. The equipment was sold at cost, so there is no gain or loss on the sale. What are total assets of Quality Galleries at the end of March? Multiple Choice $442,000 $476,000 $160,000 $282,000

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 3.9AMCP: Journal Entries Castle Consulting Agency began business in February. The transactions entered into...

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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.
Journal Entries Atkins Advertising Agency began business on January 2. The transactions entered into by Atkins during its first month of operations are as follows: Acquired its articles of incorporation from the state and issued 100,000 shares of capital stock in exchange for $200,000 in cash. Purchased an office building for $150,000 in cash. The building is valued at $110,000, and the remainder of the value is assigned to the land. Signed a three-year promissory note at the bank for $125,000. Purchased office equipment at a cost of $50,000, paying $10,000 down and agreeing to pay the remainder in ten days. Paid wages and salaries of $13,000 for the first half of the month. Office employees are paid twice a month. Paid the balance due on the office equipment. Sold $24,000 of advertising during the first month. Customers have until the 15th of the following month to pay their bills. Paid wages and salaries of $15,000 for the second half of the month. Recorded $3,500 in commissions earned by the salespeople during the month. They will be paid on the fifth of the following month. Required Prepare in journal form the entry to record each transaction.
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