The following transactions of MORALES Accounting Firm during the first month of Operations: April 1 Mr. Morales invested P30,000 cash in his firm. Bought supplies for cash P1,200. Purchased equipment from Tagumpay Enterprises on account,P9,000. Received P5,000 in fees earned during the week. Paid the office rent for the month,P1,500. Paid salaris, P1,000. Paid P2,000 to Tagumpay Enterprise. Billed a client for services rendered,P2,000. Withdrew cash,P500 for personal use. 5 8 10 15 18 22 24 30 30 Paid Meralco and PLDT bills amounting to P500 and P250, respectively.
Q: a profitability index (PI) of 1.45 ndcates the project generates S0.45 of internal rate of return…
A: Solution Concept Profitability index is mathematically expressed as =present value of inflow/…
Q: ABC Company, a computer repair shop provided the following information at the end of its first month…
A: To calculate the net profit (loss) of a company, an income statement is prepared for the period in…
Q: 26. $ provide you with $30,000 for a down payment for your first home. You mentioned to her you plan…
A: 26. Time value of money is the concept widely used by management, individuals to determine the…
Q: Explain the Advantage and Disadvantage of Debt
A: In this question, we will Explain the Advantage and Disadvantage of Debt .
Q: On January 15, Ross Furniture, Inc, accepts a $5,000, 180-day, 10 percent note from a customer at…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: A. Calculate the differential Cost ol ACme? B. Should Almond Treats make or buy the almond cereal?
A: This whole question is based on the concept Relevant cost What is Relevant cost? In simple words,…
Q: I need a Journal entry for this equation
A: Answer:
Q: List the general rules when a liquidates and distributes property to its shareholders.
A: Liquidation of company refers to the event that results in discontinuous of all the operations of…
Q: Paid $43 for an oil change. Paid $405 to install special shelving units, which increase the…
A: Journal entry: A journal entry is the act of recording or keeping track of any financial or…
Q: The following balance sheet was prepared for the X, Y and Z partnership on March 31, 2021: Cash –…
A: Sharing ratio is the percentage at which the profit and other distributions are made between the…
Q: The accounting principle that considered the business to have a separate and distinct personality…
A: Accounting is a systematic process of identifying, measuring, recording, classifying, summarising,…
Q: Premium Company is a manufacturing firm that uses job-order costing. The company's inventory…
A: The question is related to Net Income Statement for the year. Before that we will calculate cost of…
Q: In June 2021, A.B. Malinaw established a photography business. Transactions that transpired during…
A: Transaction No. Assets = Liabilities + Equity Cash Accounts Receivable Photo…
Q: Viktor Hovland purchases land with natural gas reserves for $500,000. He expects to extract 2,000…
A:
Q: 19. $ How much are the current assets? 20. $ How much are the total assets? 21. $ How much are the…
A: Answer:
Q: Use the following to answer questions 14 – 18 - You have been working at a local distributor for the…
A: given Your bi-weekly salary is $1,500. Your average income tax rate is 12% plus FICA taxes at 7.65%.…
Q: A nonresidential building was put into service for $200,000 in late February. The building was sold…
A: Depreciation It is important to find out the depreciation cost which are incurred to the assets of…
Q: Assume that a bank has lent a firm a P 200,000 for 60 days at 10% interest. The loan is discounted,…
A: Principal amount (P) = P 200,000 Interest for 60 days (I) = P200,000 x 10% x 60/360 days = P3,333…
Q: Question 7: What is the highest number of withholding allowances an employee using the wage-bracket…
A: Withholding allowance is a type of exemption that allow the employee to save a certain amount of…
Q: 1e. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…
A: As per the MACRS GDS table( seven year class) , the depreciation rate of an asset for the second…
Q: The transactions pertaining to Cash were taken from the books of ABC Company for the year 2021:…
A: Cash Flow from Operating Activities - This activity is part of the cash flow statement. It includes…
Q: [The following information applies to the questions displayed below.] In 2021, Elaine paid $2,800 of…
A: American Opportunity Tax Credit: The American Opportunity Tax Credit (AOTC) is a tax credit that…
Q: The budget director of Gourmet Grill Company requests estimates of sales, production, and other…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: How much is the realized gross profit during 2013? How much is the Construction in Progress at the…
A: Answer:
Q: What is the effect of deferred tax asset and deferred tax liability on the current year’s income tax…
A: Deferred tax assets and deferred tax liability arises because of the timing differences of the…
Q: Explain the following of the section 34 of act 152, on partnership law.
A: section 34 of act 152, on partnership law. Sec. 34-152. Sharing of profits and losses
Q: common-size percents
A: The analysis of financial statements can be done through this tool.profit and loss statements and…
Q: 1.Tracey Sullivan begins business on May 1, 20-, with the following assets and liabilities: Cash, $5…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Tasty Doughnuts has computed the net present value for capital expenditure at two locations.…
A: Answer a) Present Value Index = Present value of Cash Inflows/ Present value of cash outflows Des…
Q: please answer accordingly
A: Given Information Lathe A LatheB First Cost 40,000 56,000 Salvage Value 5,000 7,000…
Q: A liability is classified as a current liability if it is expected to be settled within the next…
A: A liability shall be classified as current when it satisfies any of the following criteria:(a) it is…
Q: On the basis that the main selection criterion is the product that offers the largest safety margin…
A: Product C
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 31,000 rolls annually…
A: In make or buy decision making, that option should be adopted which is less costly.
Q: The amount to be invested by Nicole is
A: Balance Sheet of Nicole Business Liabilities Amount Assets Amount Capital 350000…
Q: 1e. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…
A: As per the MACRD - GDS depreciation table for 7 years, the depreciation rate applicable for 2nd year…
Q: equirements Reconstruct the company’s comparative balance sheet for 2020/2021 using the information…
A: Comparative balance sheet A comparative balance sheet is very useful as it provides insights to the…
Q: 2c. A nonresidential building was put into service for $200,000 in late February. The building was…
A: As per MACRS depreciation table, non residential building falls under 39 year straight line class.…
Q: income: (Loss ) At the division level before the ad ) At the investment level. ) At the division…
A: In this question, we have to compute ROI for each division by dividing operating income by operating…
Q: A company fails to capitalize avoidable interest incurred while constructing an asset. What is the…
A: The interest expense incurred for construction of an asset should be capitalized because a new fixed…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: Date Purchase Cost of goods sold Balance Inventory Quantity Cost per Unit (In $) Total Cost…
Q: quired A Required B Required C pare the pro forma income statement that would app ervices in Year 3.…
A: this budget shows standard calculations of adding the estimated and desired-to-end inventory to the…
Q: MT Environmental provides cost effective solutions for managing regulatory requirements and…
A: GIVEN Assume that on July 1st, the company borrows $1,000,000 by issuing a one-year note, simple…
Q: GENERAL JOURNAL PAGE 1 PARTICULARS DATE 20- Mar. P.R. DEBIT CREDIT 31 Bank 4. 1000 2 0 0 2 00 A/RJim…
A: The financial statements of the business includes the income statement and balance sheet of the firm…
Q: Which of the following statements is correct? Multiple Cholce Purchases should be made only after…
A: The question is related to Auditing and procedures of Purchase.
Q: Required information [The following information applies to the questions displayed below.] Alaskan…
A: Journal entry is the first step to record the transactions in the books of account. If bonds issued…
Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…
A: Profit margin percentage is the profit as a percentage of sales or revenue. Investment turnover…
Q: The following partially completed T-accounts summarize transactions for Faaberg Corporation during…
A: Direct material cost is the amount of raw material which can be directly identified with the units…
Q: Viktor Hovland purchases land with natural gas reserves for $500,000. He expects to extract 2,000…
A: The depletion of land will be as per the units extracted at end of year 1.
Q: physical inventory of Liverpool Company taken at December 31 reveals the following.
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Bonakid Inc. has decided to invest P10,000,000 in a new headquarters and needs to determine the best…
A: Calculation of Degree of Financial Leverage Degree of Financial Leverage = Earnings before interest…
Step by step
Solved in 2 steps
- In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.The following information is provided for the first month of operations for Legal Services Inc.: A. The business was started by selling $100,000 worth of common stock. B. Six months rent was paid in advance, $4,500. C. Provided services in the amount of $1,000. The customer will pay at a later date. D. An office worker was hired. The worker will be paid $275 per week. E. Received $500 in payment from the customer in C. F. Purchased $250 worth of supplies on credit. G. Received the electricity bill. We will pay the $110 in thirty days. H. Paid the worker hired in D for one weeks work. I. Received $100 from a customer for services we will provide next week. J. Dividends in the amount of $1,500 were distributed. Prepare the necessary journal entries to record these transactions. If an entry is not required for any of these transactions, state this and explain why.A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?
- EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501. e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307. i. Received and paid the heating bill, 248, Ck. No. 504. j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 17,500. b. Purchased supplies on account, 2,300. c. Earned sales commissions, receiving cash, 13,300. d. Paid rent on office and equipment for the month, 3,000. e. Paid creditor on account, 1,150. f. Paid dividends, 1,800. g. Paid automobile expenses (including rental charge) for month, 1,500, and miscellaneous expenses, 400. h. Paid office salaries, 2,800. i. Determined that the cost of supplies used was 1,050. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August.
- On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501 (Rent Expense). e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012 (Catering Income). g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307 (Catering Income). i. Received and paid the heating bill, 248, Ck. No. 504 (Utilities Expense). j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506 (Salary Expense). Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.P. Schwartz, Attorney at Law, opened his office on October 1. The account headings are presented below. Transactions completed during the month follow. a. Schwartz deposited 25,000 in a bank account in the name of the business. b. Bought office equipment on account from QuipCo, 9,670. c. Schwartz invested his personal law library, which cost 2,800. d. Paid the office rent for the month, 1,700, Ck. No. 2000. e. Bought office supplies for cash, 418, Ck. No. 2001. f. Bought insurance for two years, 944, Ck. No. 2002. g. Sold legal services for cash, 8,518. h. Paid the salary of the part-time receptionist, 1,820, Ck. No. 2003. i. Received and paid the telephone bill, 388, Ck. No. 2004. j. Received and paid the bill for utilities, 368, Ck. No. 2005. k. Sold legal services for cash, 9,260. l. Paid on account to QuipCo, 2,670, Ck. No. 2006. m. Schwartz withdrew cash for personal use, 2,500, Ck. No. 2007. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.Journal entries and trial balance On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 40,000. b. Paid rent on office and equipment for the month, 4,800. c. Purchased supplies on account, 2,150. d. Paid creditor on account, 1,100. e. Earned sales commissions, receiving cash, 18,750. f. Paid automobile expenses (including rental charge) for month, 1,580, and miscellaneous expenses, 800. g. Paid office salaries, 3,500. h. Determined that the cost of supplies used was 1,300. i. Paid dividends, 1,500. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for October. 5. Determine the increase or decrease in retained earnings for October.
- Journal Entries Overnight Delivery Inc. is incorporated on February 1 and enters into the following transactions during its first month of operations: February 15: Received $8,000 cash from customer accounts. February 26: Provided $16,800 of services on account during the month. February 27: Received a $3,400 bill from the local service station for gas and oil used during February. February 28: Paid $400 for wages earned by employees for the month. February 28: Paid $3,230 for February advertising. February 28: Declared and paid $2,000 cash dividends to stockholders. Required Prepare journal entries on the books of Overnight to record the transactions entered into during February. Explain why you agree or disagree with the following: The transactions on February 28 all represent expenses for the month of February because cash was paid. The transaction on February 27 does not represent an expense in February because cash has not yet been paid.The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 20Y5. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 20Y5. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The business purchases furniture on account $2,000 The business renders services to various clients on account totaling $9,000 The business pays salaries $2,000 The business pays this months rent $3,000 The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,500. What is total income for the month?