Billy Bob's Barber Shop Project Transactions for January 2020 Use the following transactions to complete the first month of the Billy Bob's Barber Shop. Billy Bob Caroll organized the barber shop as a corporation and invested his savings of $40,000 cash in the business in return for capital stock. Paid cash for two barber chairs. The first chair (Barber Chair #1) cost $3,000. The second chair (Barber Chair #2) cost $2,400. *See ledger for account titles. Jan. 1 1 1 Paid cash for a one-year insurance policy $3,300. Paid cash for a help wanted advertisement in the local newspaper, $110. /2 Signed a contract to lease a building for $2,100 per month. Billy paid cash for the first four months in advance. 16 12 Purchased supplies on account, $410. 17 The barber shop provided haircuts to a total of 240 customers at $12/haircut during the first two weeks of business. The customers paid cash. 19 Paid worker (hair stylist) cash of $750 for the first two weeks of wages. 21 Provided haircuts for a family of five for $60. The family did not have the cash but agreed to pay at the beginning of next month. 31 The barber shop provided haircuts to a total of 312 customers at $12/haircut during the last two weeks of business. The customers paid cash. 31 The barber shop paid Billy a salary of $3,000 for the month. 31 The barber shop paid Billy a dividend of $125. ADJUSTMENT INFORMATION at January 31, 2020 1. Record one month of depreciation on the fixed assets. The fixed assets are depreciated using the straight-line depreciation method AND have the following residual values and useful lives: Barber Chair #1 Barber Chair #2 Residual Value $600 $0 Useful Life 10 years 10 years 2. The hair stylist had worked for 9 days at $100 per day, but will not be paid until next month. 3. A physical count of supplies revealed that $110 remains in supplies. 4. Utility bills that have been received but not paid totaled $405. 5. Don't forget to record the adjusting entries for the amount of expired insurance and rent.

Billy Bob's Barber Shop Project Transactions for January 2020 Use the following transactions to complete the first month of the Billy Bob's Barber Shop. Billy Bob Caroll organized the barber shop as a corporation and invested his savings of $40,000 cash in the business in return for capital stock. Paid cash for two barber chairs. The first chair (Barber Chair #1) cost $3,000. The second chair (Barber Chair #2) cost $2,400. *See ledger for account titles. Jan. 1 1 1 Paid cash for a one-year insurance policy $3,300. Paid cash for a help wanted advertisement in the local newspaper, $110. /2 Signed a contract to lease a building for $2,100 per month. Billy paid cash for the first four months in advance. 16 12 Purchased supplies on account, $410. 17 The barber shop provided haircuts to a total of 240 customers at $12/haircut during the first two weeks of business. The customers paid cash. 19 Paid worker (hair stylist) cash of $750 for the first two weeks of wages. 21 Provided haircuts for a family of five for $60. The family did not have the cash but agreed to pay at the beginning of next month. 31 The barber shop provided haircuts to a total of 312 customers at $12/haircut during the last two weeks of business. The customers paid cash. 31 The barber shop paid Billy a salary of $3,000 for the month. 31 The barber shop paid Billy a dividend of $125. ADJUSTMENT INFORMATION at January 31, 2020 1. Record one month of depreciation on the fixed assets. The fixed assets are depreciated using the straight-line depreciation method AND have the following residual values and useful lives: Barber Chair #1 Barber Chair #2 Residual Value $600 $0 Useful Life 10 years 10 years 2. The hair stylist had worked for 9 days at $100 per day, but will not be paid until next month. 3. A physical count of supplies revealed that $110 remains in supplies. 4. Utility bills that have been received but not paid totaled $405. 5. Don't forget to record the adjusting entries for the amount of expired insurance and rent.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 1BD

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