Case 2-69 CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT
After much consideration, Cam and Anna decide to organize their company as a corporation. On January 11 2019, Front Row Entertainment Inc begins operations. Due to Cam’s family connections in the entertainment industry, Cam assumes the major responsibility for signing artists to a promotion contract. Meanwhile. Anna assumes the financial accounting and reporting responsibilities. The following business activities occurred during January:
Jan. 1 Cam and Anna invest $8,000 each in the company in exchange for common stock.
1 The company obtains a $25,000 loan from a local bank. Front Row Entertainment agreed to pay annual interest of 9% each January I, starting in 202.0. It will repeat the amount borrowed in 5 years.
1 The company paid $1,200 in legal fees associated with incorporation.
1 Office equipment was purchased with $1000 in cash.
1 The company pays $800 to rent office space for January.
3 A 1-year insurance policy was purchased for $3,600.
3 Office supplies of $2,500 were purchased from Equipment Supply Services. Equipment Supply
Services agreed to accept $1,000 in 15 days with the remainder due in 30 days.
5 The company signs Charm City, a local band with a growing cult following, to a four-city tour that starts on February 15.
8 Venues for all four Charm City concerts were reserved by paying $10,000 cash.
12 Advertising costs of $4,500 were paid to promote the concert tour.
18 Paid $1,000 to Equipment Supply Services for office supplies purchased on January 3.
25 To aid in the promotion of the upcoming tour, Front Row Entertainment arranged for Charm
City to perform a 20-minute set at a local festival. Front Row Entertainment received $1,000 for
Charm City’s appearance. Of this total amount. $400 was received immediate with the remainder due in 15 days. The festive] took place on January 23.
25 Paid Charm City $800 for performing at the festival. Note: Front Row Entertainment records
the fees paid to the artist in an operating expense account called Artist Fee Expense.
23 Due to the success of the marketing efforts, Front Row Entertainment received $3300 in
advance ticket sales for the upcoming tour.
30 The company collected $200 of the amount due from the January 25 festival.
30 Paid salaries of S1,200 each to Cam and Anna for the month of January.
Required:
2. Post the transactions to the general ledger.
Corporate Financial Accounting
Accounting Information Systems
Financial & Managerial Accounting
Principles of Economics (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Probability and Statistics for Engineering and the Sciences
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Essentials of Business Communication (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Foundations of Business (MindTap Course List)
Financial And Managerial Accounting
Fundamentals of Information Systems
Principles of Information Systems (MindTap Course List)
Principles of Information Security (MindTap Course List)
Database Systems: Design, Implementation, & Management
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Management Of Information Security
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
EBK ELECTRICAL WIRING RESIDENTIAL
Solid Waste Engineering
International Edition---engineering Mechanics: Statics, 4th Edition
Principles of Geotechnical Engineering (MindTap Course List)
Electric Motor Control
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Automotive Technology
Steel Design (Activate Learning with these NEW titles from Engineering!)
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Network+ Guide to Networks (MindTap Course List)
Structural Analysis
College Accounting, Chapters 1-27
Intermediate Accounting: Reporting And Analysis
Financial Accounting
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Cornerstones of Cost Management (Cornerstones Series)
Corporate Financial Accounting
College Accounting (Book Only): A Career Approach
Accounting (Text Only)
Managerial Accounting
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
Accounting Information Systems
Survey of Accounting (Accounting I)
Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Macroeconomics
Contemporary Marketing
Practical Management Science
Understanding Management (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Management, Loose-Leaf Version
MKTG 12:STUDENT ED.-TEXT
Principles of Macroeconomics (MindTap Course List)
MACROECONOMICS FOR TODAY
Economics: Private and Public Choice (MindTap Course List)
Principles of Microeconomics
Economics (MindTap Course List)
Purchasing and Supply Chain Management
Macroeconomics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
Exploring Economics
Economics For Today
Microeconomics: Private and Public Choice (MindTap Course List)
Essentials of Economics (MindTap Course List)