a. K. Spade, owner, invested $100,750 cash in the company. b. The company purchased supplies for $1,250 cash. c. The company purchased $10,050 of equipment on credit. d. The company received $15,500 cash for services provided to a customer. e. The company paid $10,050 cash to settle the payable for the equipment purchased in transaction c. f. The company billed a customer $2,700 for services provided. g. The company paid $1,225 cash for the monthly rent. h. The company collected $1,125 cash as partial payment for the account receivable created in transaction f I. K. Spade withdrew $10,000 cash from the company for personal use. Required: Prepare general journal entries to record the transactions of Spade Company by using the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Services Revenue; and Rent Expense. 2. Post entries to T-accounts and the ending balances will be calculated. Complete this question by entering your answers in the tabs below. Required 1 Required 2

a. K. Spade, owner, invested $100,750 cash in the company. b. The company purchased supplies for $1,250 cash. c. The company purchased $10,050 of equipment on credit. d. The company received $15,500 cash for services provided to a customer. e. The company paid $10,050 cash to settle the payable for the equipment purchased in transaction c. f. The company billed a customer $2,700 for services provided. g. The company paid $1,225 cash for the monthly rent. h. The company collected $1,125 cash as partial payment for the account receivable created in transaction f I. K. Spade withdrew $10,000 cash from the company for personal use. Required: Prepare general journal entries to record the transactions of Spade Company by using the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Services Revenue; and Rent Expense. 2. Post entries to T-accounts and the ending balances will be calculated. Complete this question by entering your answers in the tabs below. Required 1 Required 2

Name: a. K. Spade, owner, invested $100,750 cash in the company.b. The comp
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Description: a. K. Spade, owner, invested $100,750 cash in the company.b. The company purchased supplies for $1,250 cash.c. The company purchased $10,050 of equipment on credit.d. The company received $15,500 cash for services provided to a customer.e. The compa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. Cash used for purchase of office supplies, $2,150. Cash provided from consulting to customers, $48,100. Cash used for purchase of mining equipment, $78,000. Cash provided from long-term borrowing, $65,000. Cash used for payment of employee salaries, $24,500. Cash used for payment of office rent, $12,500. Cash provided from sale of equipment purchased in c. above, $23,000. Cash used to repay a portion of the long-term borrowing in d. above, $42,500. Cash used to pay office utilities, $4,800. Purchase of company vehicle, paying $10,500 cash. Required: Calculate cash flows from investing activities. (List cash outflows as negative amounts.) Next Visit question map Question 6 of 8 Total6 of 8 Prev
A business paid $56,000 cash to purchase equipment. The business would: O A. debit Equipment for $56,000 and credit Cash for $56,000. O B. debit Cash for $56,000 and credit Notes Payable for $56,000. O C. debit ACcounts Payable for $56,000 and credit Cash for $56,000. O D. debit Equipment for $56,000 and credit Accounts Payable for $56,000.
In Year 1, Lee Inc. billed its customers $56,200 for services performed. The company collected $41,800 of the amount billed. Lee incurred $37,700 of other operating expenses on account. Lee paid $24,100 of the accounts payable. Lee acquired $39,000 cash from the issue of common stock. The company invested $14,000 cash in the purchase of land. (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. Create an accounting equation from this information.b. What amount of cash flow from revenue will be reported on the statement of cash flows?h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet?
7 - Our company purchased a photocopy machine for 100.000 TL, excluding 18% VAT, to be used in administrative works. In addition, the assembly cost of this machine is 8.000 TL excluding 18% VAT and this amount will be added to the cost price. Our company paid 19.440 TL from the bank account and the remaining amount by issuing a check to the relevant supplier company. Which of the following is the accounting record of this transaction?
Jan 1 - Mr. Suelan invested the following: Bank Deposit with BDO - 850,000.00 Merchandise with net realizable value - 250,000.00 Transportation Equipment with a fair market value of 1,800, 000.00 Jan 2 - Purchased merchandise in cash from Tuyor trading costing 150, 000.00 and paid freight and handling, 2,500.00 Jan 3 - Returned 3,000.00 cost of merchandise of Rowena Tuyor Trading due to some defects and no replacements have been made. Jan 5 - Sold merchandise for cash 120, 000.00 to Mr. G and gave 3% trade discount and paid freight on shipment, 3,500.00 Jan 7 - Purchase merchandise on account from Mr. S amounting to 50,000.00 Term 3/10, n/30. Jan 8 - Sold merchandise on account to Mr. F 185, 000.00Term 2/10, n/30. Paid freight on shipment 1,200.00 Jan 9 - Purchased merchandise on account from Mr. E costing 230,000.00 term 2/10 com Jan 10 - Received 4,000.00 worth of merchandise from Mr. F for not conforming with the order and was not replaced. Jan 12 - Paid the…
Journalize the following: 1. On the books & records of Company A: On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April May 2. On the books & records of Company A: In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. In March, Company A sold Investment in XYZ for $150. Payment was received in cash. 3. On the books & records of Company A: On April 1st, Company A paid $1,200 for insurance expense that covers the year 4/1/17-3/31/18. Record 4/1/17 entry for payment of $1,200 Record 4/30/17 journal entry 4. There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund…
The following transactions occurred during a recent year: a. Paid wages of $1,000 for the current period (example). b. Borrowed $5,000 cash from local bank using a short-term note. c. Purchased $2,000 of equipment on credit. d. Earned $400 of sales revenue; collected cash. e. Received $800 of utilities services, on credit. f. Earned $1,700 of service revenue, on credit. g. Paid $300 cash on account to a supplier. h. Incurred $70 of travel expenses; paid cash. i. Earned $400 of service revenue; collected half in cash, with balance on credit. j. Collected $100 cash from customers on account. k. Incurred $300 of advertising costs; paid half in cash, with balance on credit. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direc and for decrease) of each transaction under the accrual basis. Include revenues and expenses as equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's…
Carla Engineering Corporation purchased conveyor equipment with a list price of $9,200. Presented below are three independent cases related to the equipment. (a) Carla paid cash for the equipment 8 days after the purchase. The vendor’s credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross. (b) Carla traded in equipment with a book value of $2,200 (initial cost $7,400), and paid $9,800 in cash one month after the purchase. The old equipment could have been sold for $300 at the date of trade. (The exchange has commercial substance.) (c) Carla gave the vendor a $11,000 zero-interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time. Assume that the effective-interest rate in the market was 9%. Prepare the general journal entries required to record the acquisition and payment in each of the independent cases above. (Round present value factor calculations to 5 decimal places, e.g.…
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals. Cash used for purchase of office supplies, $2,150. Cash provided from consulting to customers, $48,100. Cash used for purchase of mining equipment, $78,000. Cash provided from long-term borrowing, $65,000. Cash used for payment of employee salaries, $24,500. Cash used for payment of office rent, $12,500. Cash provided from sale of equipment purchased in c. above, $23,000. Cash used to repay a portion of the long-term borrowing in d. above, $42,500. Cash used to pay office utilities, $4,800. Purchase of company vehicle, paying $10,500 cash. Required: Calculate cash flows from operating activities. (List cash outflows as negative amounts.) Next Visit question map Question 5 of 8 Total5 of 8 Prev
The following are several transactions for Halpin Advertising Company.a. Purchased $1,000 of supplies.b. Sold $5,000 of advertising services, on account, to customers.c. Used $250 of supplies.d. Collected $3,000 from customers in payment of their accounts.e. Purchased equipment for $10,000 cash.f. Recorded $500 depreciation on the equipment for the current period.Required:Identify the effect, if any, that each of the above transactions would have on net income undercash-basis accounting and accrual-basis accounting.
Nuncio Consulting completed the following transactions during June. a. Armand Nuncio, the owner, invested $35,000 cash along with office equipment valued at $11,000 in the new company. b. The company purchased land valued at $7,500 and a building valued at $40,000. The purchase is paid with $15,000 cash and a long-term note payable for $32,500. c. The company purchased $500 of office supplies on credit. d. A. Nuncio invested his personal automobile in the company. The automobile has a value of $8,000 and is to be used exclusively in the business. e. The company purchased $1,200 of additional office equipment on credit. f. The company paid $1,000 cash salary to an assistant. g. The company provided services to a client and collected $3,200 cash. h. The company paid $540 cash for this month’s utilities. i. The company paid $500 cash to settle the payable created in transaction c. j. The company purchased $3,400 of new office equipment by paying $3,400 cash. k. The company completed…
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