Use Redlands’ 2017 balance sheet from Exhibit 2-1 in your Bergevin and MacQueen textbook as the starting point for this problem. Assume that Redlands had the following transactions in 2018: Borrowed $80 in cash from a bank at the beginning of 2018. Received $50 cash from the 2017 consulting engagement. Paid $30 cash for the 2017 operating expenses. Earned $60 in consulting revenue for 2018—collected one-half of the revenue in cash. Incurred $35 of operating expenses in 2018—paid $20 of the operating expenses in cash. Recorded 2018 depreciation expense of $15 on the equipment purchased in 2017. Paid $8 of interest for the $80 cash borrowed at the beginning of 2018. Record the transactions in the general journal.
Use Redlands’ 2017 balance sheet from Exhibit 2-1 in your Bergevin and MacQueen textbook as the starting point for this problem. Assume that Redlands had the following transactions in 2018: Borrowed $80 in cash from a bank at the beginning of 2018. Received $50 cash from the 2017 consulting engagement. Paid $30 cash for the 2017 operating expenses. Earned $60 in consulting revenue for 2018—collected one-half of the revenue in cash. Incurred $35 of operating expenses in 2018—paid $20 of the operating expenses in cash. Recorded 2018 depreciation expense of $15 on the equipment purchased in 2017. Paid $8 of interest for the $80 cash borrowed at the beginning of 2018. Record the transactions in the general journal.
Chapter6: Managing Cash Flow
Section: Chapter Questions
Problem 12SEP
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Use Redlands’ 2017 balance sheet from Exhibit 2-1 in your Bergevin and MacQueen textbook as the starting point for this problem. Assume that Redlands had the following transactions in 2018:
- Borrowed $80 in cash from a bank at the beginning of 2018.
- Received $50 cash from the 2017 consulting engagement.
- Paid $30 cash for the 2017 operating expenses.
- Earned $60 in consulting revenue for 2018—collected one-half of the revenue in cash.
- Incurred $35 of operating expenses in 2018—paid $20 of the operating expenses in cash.
- Recorded 2018
depreciation expense of $15 on the equipment purchased in 2017. - Paid $8 of interest for the $80 cash borrowed at the beginning of 2018.
Record the transactions in the general journal.
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