FINANCIAL ACCOUNTING W/ACCESS >CI<
2nd Edition
ISBN: 9781259999024
Author: SPICELAND
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 4.16BE
On January 12, Ferrell Incorporated obtains a permit to start a comedy club, which will operate only on Saturday nights. To prepare the club for the grand opening, Ferrell purchases tables, chairs, ovens, and other related equipment for $65,000 on January 16. Ferrell pays 20% of this amount (= $13,000) in cash at the time of purchase and signs a note with Live Bank for the remaining amount. Determine the amount of investing
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On January 12, Ferrell Incorporated obtains a permit to start a comedy club, which will operate only on Saturday nights. To prepare the club for the grand opening, Ferrell purchases tables and chairs for $13,000 cash on January 16. Ferrell also purchases cleaning supplies on account for an additional $3,000. Determine the amount of investing cash flows Ferrell would report in January.
On July 01, 2020, Maria initially invested P200,000 cash into Maria Merchandising. On the same date, she paid P45,000 for six months rent on the store space, P10,000 for business licenses and permits, and P50,000 for various store furniture. She also bought P60,000 worth of office supplies on account with the intention to sell them at a higher price. However, the next day, the business received a P1,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from 123 Supplies Store on terms n/60. On July 6, the business bought from 45 Supplies Shop P5,000 worth of supplies to be used in the store on terms 50% downpayment, balance n/30. Francisco, a part time employee, was able to sell on July 12 some of the store's merchandise to Mr. Sam for P16,000 on terms 50% downpayment, balance 2/10, n/30. On July 24, the business sold to Mrs. Aslani merchandise for P12,000 on terms 2/10, n/30. On July 30, Mr. Boom paid the business P42,000 for merchandise bought…
On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,316 cash. The new company, Sheffield Sales and Service, has the following transactions during January. 1. Pays $12,000 in advance for 3 months rent of office, showroom, and repair space. 2. Purchases 42 personal computers at a cost of $1,664 each, 8 graphics computers at a cost of 5 2,664 each, and 27 printers at a cost of $464 each, paying cash upon delivery. 3. Sales, repair, and office employees earn $13,916 in salaries and wages during January, of which $4, 316 was still payable at the end of January. 4. Sells 32 personal computers at $2,714 each, 6 graphics computers for $3, 764 each, and 17 printers for $664 each; 576,316 is received in cash in January, and $44, 404 is sold on a deferred payment basis. 5. Other operating expenses of $9, 716 are incurred and paid for during January: $3,316 of incurred expenses are payable at January 31. (a) Using.…
Chapter 4 Solutions
FINANCIAL ACCOUNTING W/ACCESS >CI<
Ch. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - What is meant by the fraud triangle, and what can...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - What is meant by separation of duties?Ch. 4 - Prob. 10RQ
Ch. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 13RQCh. 4 - Prob. 14RQCh. 4 - Prob. 15RQCh. 4 - Prob. 16RQCh. 4 - Prob. 17RQCh. 4 - Prob. 18RQCh. 4 - Prob. 19RQCh. 4 - Prob. 20RQCh. 4 - Prob. 21RQCh. 4 - 22.What are two primary reasons that the companys...Ch. 4 - Prob. 23RQCh. 4 - Prob. 24RQCh. 4 - Prob. 25RQCh. 4 - Describe how management maintains control over...Ch. 4 - Prob. 27RQCh. 4 - Describe the operating, investing, and financing...Ch. 4 - Why is an analysis of the companys cash balance...Ch. 4 - We compared Regal Entertainment and Cinemark at...Ch. 4 - Prob. 4.1BECh. 4 - Match each of the following components of internal...Ch. 4 - Prob. 4.3BECh. 4 - Prob. 4.4BECh. 4 - During the year, the following sales transactions...Ch. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - On January 12, Ferrell Incorporated obtains a...Ch. 4 - Prob. 4.17BECh. 4 - For each company, calculate the ratio of cash to...Ch. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Below are several amounts reported at the end of...Ch. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Below are cash transactions for Goldman...Ch. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Consider the following information: 1.Service...Ch. 4 - Prob. 4.20ECh. 4 - Prob. 4.1APCh. 4 - Prob. 4.2APCh. 4 - Prob. 4.3APCh. 4 - Prob. 4.4APCh. 4 - Prob. 4.5APCh. 4 - Prob. 4.1BPCh. 4 - Prob. 4.2BPCh. 4 - Prob. 4.3BPCh. 4 - Prob. 4.4BPCh. 4 - Prob. 4.5BPCh. 4 - An examination of the cash activities during the...Ch. 4 - Prob. 4.2APFACh. 4 - Prob. 4.3APFACh. 4 - Prob. 4.4APCACh. 4 - Prob. 4.5APECh. 4 - Prob. 4.7APWC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.arrow_forwardKathy Wintz formed a lawn service business as a summer job. To start the corporation on May 1, 2018, she deposited $1,000 in a new bank account in the name of the business. The $1,000 consisted of a $600 loan from Bank One to her company, Wintz Lawn Service, and $400 of her own money. The company issued $400 of common stock to Wintz. Wintz rented lawn equipment, purchased supplies, and hired other students to mow and trim customers’ lawns. At the end of each month, Wintz mailed bills to the customers. On August 31, she was ready to dissolve the corporation and return to college. Because she was so busy, she kept few records other than the checkbook and a list of receivables from customers. At August 31, the business’s checkbook shows a balance of $2,000, and customers still owe $750. During the summer, the business collected $5,500 from customers. The business checkbook lists payments for supplies totaling $400 and it still has gasoline, weed trimmer cord, and other supplies that cost…arrow_forwardKathy Wintz formed a lawn service business as a summer job. To start the corporation on May 1, 2018, she deposited $1,000 in a new bank account in the name of the business. The $1,000 consisted of a $600 loan from Bank One to her company, Wintz Lawn Service, and $400 of her own money. The company issued $400 of common stock to Wintz. Wintz rented lawn equipment, purchased supplies, and hired other students to mow and trim customers’ lawns. At the end of each month, Wintz mailed bills to the customers. On August 31, she was ready to dissolve the corporation and return to college. Because she was so busy, she kept few records other than the checkbook and a list of receivables from customers. At August 31, the business’s checkbook shows a balance of $2,000, and customers still owe $750. During the summer, the business collected $5,500 from customers. The business checkbook lists payments for supplies totaling $400 and it still has gasoline, weed trimmer cord, and other supplies that cost…arrow_forward
- In June 2020, Shalimar organized a corporation to provide aerial photography services. The company, called Aerial Views, began operations immediately. Transactions during the month of June were as follows: June 1 The corporation issued 70,000 shares of capital stock to Wendy Winger in exchange for $140,000 cash. June 2 Purchased a plane from Utility Aircraft for $240,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance. June 4 Paid Woodrow Airport $2,200 to rent office and hangar space for the month. June 15 Billed customers $8,520 for aerial photographs taken during the first half of June. June 15 Paid $6,880 in salaries earned by employees during the first half of June. June 18 Paid Hannigan’s Hangar $1,990 for maintenance and repair services on the company plane. June 25 Collected $4,900 of the amounts billed to customers on June 15. June 30 Billed customers $17,450 for aerial photographs taken during the second half of the month. June 30 Paid…arrow_forwardDuring March 2020, ABC engaged in the following transactions: a. ABC received cash of $50,000 from David R. and issued common stock to David. b. The business paid $20,000 cash to acquire a truck. c. The business purchased supplies costing $1,800 on account. d. The business painted a house for a client and received $3,000 cash. e. The business painted a house for a client for $4,000. The client agreed to pay next week. f. The business paid $900 cash toward the supplies purchased in transaction c. g. The business paid employee salaries of $1,000 in cash. h. The business paid cash dividends of $1,500. i. The business collected $2,600 from the client in transaction e. j. David paid $200 cash for personal groceries. Required Record transaction in journal formarrow_forwardThe following transactions occurred during 2024 for the Beehive Honey Corporation: February 1 Borrowed $19,000 from a bank and signed a note. Principal and interest at 12% will be paid on January 31, 2025. April 1 Paid $5,000 to an insurance company for a two-year fire insurance policy. July 17 Purchased supplies costing $3,500 on account. At the year-end on December 31, 2024, supplies costing $1,600 remained on hand. November 1 A customer borrowed $8,100 and signed a note requiring the customer to pay principal and 10% interest on April 30, 2025. Required: Record each transaction in general journal form. Prepare any necessary adjusting entries at the year-end on December 31, 2024. No adjusting entries were recorded during the year for any item.arrow_forward
- On November 1, 2020, Aleli Gomuna purchased a pest – control company from its previous owner. Aleli paid ₱220,000 from her personal checking account for assets consisting of pesticides supplies, ₱75,000 and spraying equipment, ₱145,000. The company is to operate under the name of Lily Gomuna Pest Control. The following transactions occurred during the month of November: a. Aleli invested additional ₱230,000 in the business. b. Pest control service for customers was done on account, ₱42,000. c. Pesticide supplies were acquired on account, ₱39,500. d. Spraying equipment costing ₱67,000 was acquired on account. e. Pest control service was rendered for cash, ₱87,000. f. Repairs were made to the equipment; ₱28,500 was paid in cash. g. Paid ₱17,000 for pesticide supplies recently acquired h. Rendered pest control service for customers on account, ₱63,000. i. Purchase pesticide supplies on account, ₱54,500 j. Paid for utilities, ₱20,500. k. Paid ₱56,500 for the salaries of personnel. l.…arrow_forwardThe Gap has opened a new store in Ottawa, investing $100,000 in cash in return for common shares of the new company that will operate the store. Susan Harper is the store’s manager. During the first week of operations, Harper signed a note payable to purchase land for $40,000 and a building for $130,000. The store also paid $50,000 for store fixtures and $40,000 for inventory to use in the business. All these were paid for in cash. The Gap’s head office requires store managers to provide a weekly report that summarizes and discusses the details of the store’s financial position and how it has changed since the previous report. Susan has asked for your help with this request. Prepare the report for head office (assume all events above took place in the first week of operations).arrow_forwardTransactions for the month of December 2020 are as follows: 1-Dec Rey Millora opened an account with Union Bank under Rey's Laundromat business name in the amount of P1,500,000. He also invested in a computer worth P100,000 with a fair market value of P90,000. 2 Paid municipal taxes of P5,500 including his license to operate. 5 Bought a P900,000 condominium for his office paying a P500,000 down payment and signing a mortgage with Metro Bank payable in 10 years for the balance. 7 Bought furniture on credit from Furniture World, P45,000. 8 Returned P7,000 worth of furniture bought due to wrong specifications. 9 Bought cash register P24,000 paid in cash. 10 Paid furniture and fixtures purchased account. 11 Bought P5,600 office supplies paid in cash. 12 Bought a P600,000 van from Jade Motors for use in the business. Terms: 25% cash, 40% thru a 30-day, 10% note, and the balance on the account. 13 Made an additional investment of P500,000 and equipment worth P60,000 with…arrow_forward
- Transactions for the month of December 2020 are as follows: 1-Dec Rey Millora opened an account with Union Bank under Rey's Laundromat business name in the amount of P1,500,000. He also invested in a computer worth P100,000 with a fair market value of P90,000. 2 Paid municipal taxes of P5,500 including his license to operate. 5 Bought a P900,000 condominium for his office paying a P500,000 down payment and signing a mortgage with Metro Bank payable in 10 years for the balance. 7 Bought furniture on credit from Furniture World, P45,000. 8 Returned P7,000 worth of furniture bought due to wrong specifications. 9 Bought cash register P24,000 paid in cash. 10 Paid furniture and fixtures purchased on account. 11 Bought P5,600 office supplies paid in cash. 12 Bought a P600,000 van from Jade Motors for use in the business. Terms: 25% cash, 40% thru a 30-day, 10% note, and the balance on the…arrow_forwardNunez Ludeiro Partners started a new business on July 1, 2021. That same day, Nunez Ludeiro Partners also received $320,000 of cash from issuing common stock and borrowed $160,000 from a friend. On July 1, 2021 Nunez Ludeiro Partners also purchased equipment for $194,400. The equipment has a useful life of 108 months. On July 1, 2021, Nunez Ludeiro also paid $88,800 of cash to rent office space for a 24 month period. During 2021, the Company provided services valued at $86,400 and had collected $34,560 of that amount at year-end. The company will collect the remaining portion in the following year.The company's payroll for 2021 was $54,800, which was paid in full during 2021. Use this information to find the company's balance of total assets as of 12/31/2021?arrow_forwardRR Claro, a public relation man, opened his business on May 1, 2020. Below are the transactions completed by the RC Communication Company during the month of May. May 1 RR Claro invested cash, P80,000 to start the business. 7 Paid taxes and licenses to the City Treasurer, P1,500. 8 Purchased office furniture from Acme Furniture, P15,000 paying P5,000 down, balance in 10 days. 15 Received P25,000 for services rendered from various clients. 19 Billed National Enterprises for services rendered, P28,000. 31 Withdrew 30,000 for personal usearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY