Aug. 1Opens an office as a financial advisor, investing $9,000 in cash.4Pays insurance in advance for 6 months, $2,100 cash.16Receives $3,600 from clients for services performed.27Pays secretary $1,000 salary.Effect on Accounting EquationAug.The assetisthe owner's equity accountisAug.The assetis4the assetisAug.The assetis16the revenueisAug.isThe expense27the assetis<>>>> Debit-Credit AnalysisDebitsDebit$CreditsCredit$DebitsDebitCreditsCredit$DebitsDebit%24CreditsCredit$DebitsDebit$CreditsCredit24%24%24%24%24%24%24%24%24>>>

Each transaction effects the accounting equation such that, assets = liabilities + equity.

Answered: Aug. 1 Opens an office as a financial…

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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James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days. 11 A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent. 22 Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent. 25 Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…
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Gross wages at the Timberwolf Company are $100,000. The Social Security tax rate is 6.0% The Medicare tax rate is 1.5% Amount withheld from employee paychecks for the United Way, a charitable organization, is $2,000. Amount withheld from employee paychecks for retirement savings is $4,000. Make the journal entry (debit and credits) for recording the payroll.
Financial Transactions: Journalize the following transactions that occurred during the year: January 1: Received $100,000 cash in exchange for common stock. January 1: Purchased a delivery truck for $36,000 by paying $6,000 in cash and signing a note f remainder. January 15: Purchased $1,200 of supplies on account July 1: Paid $12,000 for an annual insurance policy. December 31: Made sales of $500,000 on the account. The Cost of Goods Sold was $300,000.
Assume that the employees are paid from the company's regular bank account check numbers 981 and 982 prepare the entry to record and pay the payroll in general journal from September 30th if required round amounts to the nearest cent if an amount does not require an entry leave it blank. College accounting 13th edition
On December 31, 2021, ABC Company presents the following cash and cash equivalents account balance per ledger items: Demand deposit 2,200,000 Undeposited collection 300,000 Time deposit-30 days 500,000 NSF check of customer 20,000 300,000 35-day money market placement due 1/28/2022 45-day commercial papers due 2/4/2022 80,000 Savings deposit in closed bank 50,000 IOU from an employee 150,000 Preferred redemption fund 400,000 Additional information: a) Included in the demand deposit of P2,200,000 was a customer check amounting to P50,000 dated January 25, 2022. b) Also included in the bank deposit is a customer check amounting to P90,000 dated December 31, 2020. The company neglected to encash the check. On December 31, 2021, the customer was informed and he was willing to replace this with a new one. New check is yet to be received from the customer. c) Check of P60,000 dated January 31, 2022 in payment of accounts payable was recorded and mailed December 31, 2021. d) creditors on…
A paving company has 24 employees, 15 with gross earnings of $365 per week and nine with gross earnings of $385 per week. What is the total social security and Medicare tax (in $) the company must send to the Internal Revenue Service for the first quarter of the year? $ 1678 Submit Answer
Jack Closets, Inc. employs 27 employees earning an average of $1,550 per week. The company awards each employee three weeks of vacation per year. Vacation days neither accumulate nor vest if not taken in the year earned. During the current year, 25 of Jack's employees took their 3 full weeks while the other 2 employees were unable to take any vacation this year. Prepare the journal entry necessary to record Jack's vacation pay. (Record debits first, then credits. Exclude explanations from journal entries.) Account Vacation Wage Expense Cash Current Year 116,250 116,250
A man borrowed $3700 from a bank for 6 months A friend was cosigner of the man's personal note. The bank collected 3 simple interest on the date of maturity a) How much did the man pay for the use of the money? b) Determine the amount he repaid to the bank on the due date of the note a) The man paid S for the use of the money

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Aug. 1 Opens an office as a financial advisor, investing $9,000 in cash. Pays insurance in advance for 6 months, $2,100 cash. 16 Receives $3,600 from clients for services performed. 27 Pays secretary $1,000 salary.