Inter Company was founded in Dec 2018. Inter Company provides sports services tocustomers.During month of December 2018, the following transactions took place:1-Dec Shareholders invested $480,000 cash in the business in exchange for shares.Purchased a land costing $100,000 and equipment for $20,000 on account.15Purchased building for $17,000 cash.16Performed services for $11,000 on account.18Received $6,000 in cash from the billed customers on December 16th.21Paid $42,000 cash for the purchase on account on December 6th.25Received $12,000 cash from customer for services not performed yet.29Declared and paid cash dividends to shareholders for $5,000.30Paid advertising of the month, $1,000.Answer the following:1- Analyze the transactions based on the source documents provided using a tabularform.Note: Use the provided table belowAssetsLiabilitiesEquityUNEARNEDShareRetained EarningsNo.CashLandBuildingEquipmentA/RAPREVENUECapitalRevenues ExpensesDividendsDec-01Dec-06Dec-15Dec-16Dec-18Dec-21Dec-25Dec-29Dec-30||

An increase in assets and expense is recorded by debiting them respectively and any decrease is…

Answered: Answer the following: 1- Analyze the…

Business

Accounting

Answer the following: 1- Analyze the transactions based on the source documents provided using a tabular form.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Below are the financial data of Kapit Lang Company, a not-for-profit entity for month of June, 2017.Cash – P3,500,500Accounts Receivable – P350,250Long-Term Investment – P1,250,000Plant, Property and Equipment – P3,500,000Total Liabilities – P3,750,250Transactions for the month of July, 2017 Receive a car worth – P800,000 but treated as temporary restricted net assets Partial payment of accounts payable – P350,000 Issued a promissory notes worth – P450,000 Paid the salary of employees – P16,550 Paid the repair of computer – P7,350 Compute balance of total assets as of July, 2017 a. 9,476,800 b. 9,476,700 c. 9,476,750 d. 9,476,850 Compute the balance of unrestricted net assets as of July, 2017, if unrestricted net assets is 65% of total net assets as of June, 2017. a. 3,128,920 b. 3,128,925 c. 3,128,930 d. 3,128,935 Compute the balance of total liabilities as of July, 2017 a. 3,850,200 b. 3.850,195 c. 3,850,250 d. 3,850,255
The McMillan Corporation incorporated on September 2, 2011. The company engaged in thefollowing transactions during its first month of operations:Sept. 2 Issued capital stock in exchange for $900,000 cash.Sept. 4 Purchased land and a building for $350,000. The value of the land was $50,000, andthe value of the building was $300,000. The company paid $200,000 cash and issued anote payable for the balance.Sept. 12 Purchased office supplies for $600 on account. The supplies will last for severalmonths.Sept. 19 Billed clients $75,000 on account.Sept. 29 Recorded and paid salary expense of $24,000.Sept. 30 Received $30,000 from clients billed on September 19.A partial list of the account titles used by the company includes:Cash Notes PayableAccounts Receivable Accounts PayableOffi ce Supplies Capital StockLand Client RevenueBuilding Salary Expensea. Prepare journal entries, including explanations, for the above transactions.b. Post each entry to the appropriate ledger accounts (use the T…
Coleman Motors, Inc., was formed on January 1,2018. The following transactions occurred during 2018:On January 1, 2018, Coleman issued its common stock for $350,000. Early in January,Coleman made the following cash payments:a. $140,000 for equipmentb. $175,000 for inventory (five cars at $35,000 each)c. $19,000 for 2018 rent on a store buildingIn February, Coleman purchased six cars for inventory on account. The cost of this inventorywas $282,000 ($47,000 per car). Before year-end, the company paid off $197,400 of this debt.The company uses the first-in, first-out (FIFO) method to account for its inventory.During 2018, Coleman sold six autos for a total of $426,000. Before year-end, it had collected 90% of this amount.The business employs three people. The combined annual payroll is $90,000, of which Coleman owes $5,000 at year-end. At the end of the year, the company paid income taxes of $14,000.Late in 2018, Coleman declared and paid cash dividends of $29,000.For equipment, Coleman…
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $52,675 cash to start the business and received 4,300 shares. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $49,150, amounts due from customers from sales of books, $28,850, property and equipment, $54,750, amounts owed to publishers for books purchased, $8,900; one-year note payable to a local bank for $4,200. No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2020: Total assets Assets READER DIRECT Balance Sheet At December 31, 2020 $ Total liabilities Liabilities Shareholders' equity Total shareholders equity 0 Total llabilities & shareholders' equity $ 0 0
Below are the financial data of Tulong Namin Company, a not-for-profit entity for month of June, 2017.Cash – P4,300,500Accounts Receivable – P250,500Long-Term Investment – P1,000,000Plant, Property and Equipment – P4,500,500Accounts Payable – P500,000Notes Payable – P1,500,000Transactions for the month of July, 2017 Receive a car worth – P600,000 but treated as temporary restricted net assets Partial payment of accounts payable – P250,000 Issued a promissory notes worth – P500,000 Paid the salary of employees – P25,250 5. Paid the repair of computer – P6,500Compute balance of total assets as of July, 2017 a. 10,869,740 b. 10,769,745 c. 10,869,750 d. 10,869,755 Compute the balance of unrestricted net assets as of July, 2017, if unrestricted net assets is 70% of total net as a. 5,604,300 b. 5,604,250 c. 5,604,350 d. 5,604,200 Compute the balance of total net assets as of July, 2017 a. 8,619,755 b. 8,619,750 c. 8,619,745 d.…
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $55,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank, $50,500; amounts due from customers from sales of books, $28,500; equipment, $54,000; amounts owed to publishers for books purchased, $9,000; one-year notes payable to a local bank for $5,250. No dividends were declared or paid to the stockholders during the year.Assuming that Reader Direct generates net income of $6,000 and pays dividends of $3,600 in 2018, what would be the ending Retained Earnings balance at December 31, 2018?This is the problem I have been given, and I've gotten to this point. I am just very confused on the Ending RE and Beginning RE.So far I haveENDING RE = BEG RE + Net Income- Dividends________ = _______ + 6,000 - 3,600
The following transactions are for the Sun’s Corporation, December, 2018. 12 Jan. Sun’s Corporation issued shares 100000 and value of one share is Rs. 56. 14 Feb. Sun’s Corporation purchased furniture 30000 for cash. 17 Mar. Sold goods on credit for Rs. 90000. 21 Apr. Account receivable collected for Rs 10000, made on 17 March. 21 Apr Sun’s Corporation purchased computer 30000 on account payable. 23 Jun. Paid advertising expense for 9000. 12 Sep. Paid salary for 17000 30 Dec. Declared and paid dividend to shareholders 40000. Required: Pass Journal entries. Post each of the above transactions in the Ledger Prepare Trial Balance.
Mzanzi (Pty) Ltd was established June 1, 2016, by two students majoring in education. The twoentrepreneurs provided entertainment for children’s birthday parties to supplement their collegecareer. The following transactions occurred during the first month of operations:June 1: Received contribution of R6,000 from each of the two principal owners of the new businessin exchange for ordinary shares in the business.June 1: Purchased lighting equipment for R300 on an open account. The company has 30 days topay for the equipment.June 5: Registered as a vendor with the city and paid the R25 monthly fee.June 9: Purchased an event tent to set up at parties for R2,400 cash.June 10: Purchased R100 in miscellaneous supplies on account. The company has 30 days to payfor the supplies.June 15: Paid a R75 bill from local printer for advertisement signs.June 17: Customers paid for services with cash of R1,500.June 24: Billed the local park district R800 entertainment provided to a summer camp.The park…
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $46,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $41,500; amounts due from customers from sales of books, $27,600; equipment, $45,000; amounts owed to publishers for books purchased, $8,100; one-year notes payable to a local bank for $3,900. No dividends were declared or paid to the stockholders during the year. 2. Using the retained earnings equation and an openind balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2020. Net Income = Ending RE + Dividends-Beginning RE
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $48,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $43,500; amounts due from customers from sales of books, $27,800; equipment, $47,000; amounts owed to publishers for books purchased, $8,300; one-year notes payable to a local bank for $4,200. No dividends were declared or paid to the stockholders during the year. Using the retained earnings equation and an opening balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2020.
The following transactions took place in Chan Renovations Corporation during June 2019, its first month of operation. Jun. 1 Issued share capital for $8,000 cash 1 Purchased $5,000 of equipment on credit 2 Collected $600 cash for repairs completed today 3 Paid $20 for supplies used today 4 Purchased $1,000 of supplies on credit (recorded as unused supplies) 5 Billed customers $2,500 for repairs performed to date 8 Collected $500 of the amount billed on June 5 10 Paid half of the amount owing for equipment purchased on June 115 Sold excess equipment for $1,000 (its original cost). The buyer will pay this amount in several months. (Recorded as accounts receivable). 18 Paid for the supplies purchased on June 4 20 Received a $100 bill for electricity used to date (recorded as utilities expense) 22 Paid $600 to the landlord for June and July rent (recorded as prepaid rent) 23 Signed a union contract that will increase wages 5% this year. 25 Collected $1,000 of the amount billed on June 5 27…
Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 17,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share. b. Purchased land in Wisconsin for $19,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $12,000 each; paid $2,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,200 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $4,750 to Pablo Development Corporation, which signed a six-month note. 1. Stockholder Helen Bailey paid $29,300 cash for a vacant lot (land) in Canada for her personal use. 2. Prepare a trial balance at December…