Cullen Beatty plans to start a consulting business-Cullen Consulting Services. In preparation to do this, on April 1, 20X1, he invested$56,000 in cash and $23,000 in equipment, and opened an account at Office Plus by purchasing $1,750 in office supplies which isdue by the end of the month. He then signed a one-year lease agreement on an office building for $8,400, paying the full amount inadvance.Prepare a Balance Sheet for Cullen Consulting Services as of April 1, 20X1, before he conducts any services.CashEquipmentPrepaid rentCULLEN CONSULTING SERVICESBalance SheetApril 1, 20X1AssetsLiabilities$47,600 Accounts payable23,0008,400Owner's Equity$1,750Cullen Beatty, Capital77,250Total Assets$79,000 Total Liabilities and Owner's Equity$79,000

Step 1:The balance sheet is a financial account used to show the company's final position at the…

Answered: Cullen Beatty plans to start a…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 55P

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Similar questions

Melanie, an office administrator, is evaluating the following quotation that she received for the purchase of a printer for her office: Lease Option: Make payments of $85 at the beginning of every month for 6 years. At the end of 6 years, make the final payment of $1,500. Purchase Option: Make a payment of $5,950 immediately.
AD Construction, a property developer, is building a property complex consisting of 50 apartments. Apartments are similar in size and proportion - however, can be adapted to suit client needs. AD Construction enters into a contract with customer B. The client wants to buy an apartment and agrees to a total price of CU100,000 per apartment. The payment schedule is as follows: After signing the contract, clients pay a deposit of CU 10,000 each. Milestone: 1 year before the planned completion, AD Construction will send a progress report to the client and the client will have to pay CU 50,000 each. Completion: After construction is completed, the legal ownership of the apartment is transferred to the client and they pay the remaining amount of CU40,000 each. The assumed construction period is 2 years from the contract date. AD Construction has the right to withhold payment from any client in the event that that client fails to pay for the contract prior to its completion. The contract…
Craig has decided to start snow plowing during the winter months. He purchased a heavy-duty dump truck with plow and salter from Power Equipment for $40,000 on October 1st, 2026. He paid $1,000 as a down payment and the remaining balance on a 5% -7 year note to Power Equipment. You will be completing several accounting activities in regards to this purchase. What would the journal entry be for the check 1. Use the write check function in QB Online to record the entire purchase (down payment and capitalization of the truck and related liability). Use check number 171. Create accounts as needed in QB Online. You may find it helpful to write out the journal entry first before completing it in QB Online.
AD Construction, a property developer, is building a property complex consisting of 50 apartments. Apartments are similar in size and proportion - however, can be adapted to suit client needs. AD Construction enters into a contract with customer A. The client wants to buy an apartment and agrees to a total price of CU100,000 per apartment. The payment schedule is as follows:- After signing the contract, clients pay a deposit of CU 10,000 each.- Milestone: 1 year before the planned completion, AD Construction will send a progress report to the client and the client will have to pay CU 50,000 each.- Completion: After construction is completed, the legal ownership of the apartment is transferred to the client and they pay the remaining amount of CU40,000 each. The assumed construction period is 2 years from the contract date. AD Construction has the right to withhold payment from any client in the event that that client fails to pay for the contract prior to its completion. There is no…
On 1 March 2021, Tom set up J Hair Salon by investing $50,000 cash and $30,000 of equipment in J Hair Salon. On that day, he paid rent of $15,000 for three months. During March 2021, he completed the following additional transactions: Purchased $3,000 of supplies on account. Provided haircuts and treatments and received $20,000 cash. Determined that the cost of supplies on hand in end-March was $500.Analyse the above and record the necessary entries for March 2021. For this question, dates and narrations are not required
Answer the following questions:1. Assume that Rolf Dorman invests $20,000 in cash in a new pool cleaning business onJanuary 1, 2020 and for the first month of operations, engaged in the followingtransactions:a. January 1, 2020 – invested $20,000 in cashb. January 1, 2020 – paid $1,500 in cash for renting an office space downtown. Thepayment covers one quarter’s rent from January to March 2020.c. January 2, 2020 – received a contract to clean the public pool downtown for thenext six months. The contract will earn Rolf $650 per month and he is expected toperform the service every 30th of the month.d. January 5, 2020 – Rolf made some refurbishments in his rented space. He boughtfurniture and fixtures amounting to $2,500 on credit. The credit terms is 2/10,n/eom. He also bought some office equipment amounting to $3,000 on credit withterms n/eom. Rolf has decided to depreciate the furniture & fixtures using straightline method, assuming no salvage value and a useful life of five years.…
I need a Journal entry for this equation
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In early December Alice and Bob decided to open Sample Cafe with $16,000 of their ownmoney and $20,000 borrowed from a friend. They have spent $13,000 on equipment andfurniture, and they have purchased $3,200 worth of cups for cash which they expect will beused over the next three months. Having put down a $2,300 deposit for a location on MainSt., they will pay the first month’s rent when they open their doors on January 1.In the balance sheet template below, fill in the appropriate values as of December 31.
Assume you are the accounting manager for Logan’s Landscaping & Design. On December 1, 2013, Logan Karver, the owner, presents you with a check for $15,000 from a customer, Anna DeJuliet, to do a landscape design at her residence as soon as the ground thaws in the spring of 2014. No work on this project can be done until then. Logan wants you to deposit the check and include the $15,000 in the 2013 income statement. He is expecting to include the $15,000 in his 2013 net income in order to secure a loan from the bank in January 2014 for some new equipment. Write a Business Memo in proper format to Logan explaining how this check should be accounted for and why.
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On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,772 cash. The new company, Blossom Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. Pays $9,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 43 personal computers at a cost of $1,688 each, 9 graphics computers at a cost of $2,688 each, and 28 printers at a cost of $488 each, paying cash upon delivery. Sales, repair, and office employees earn $14,372 in salaries and wages during January, of which $4,772 was still payable at the end of January. Sells 33 personal computers at $2,738 each, 7 graphics computers for $3,788 each, and 18 printers for $688 each; $76,772 is received in cash in January, and $52,482 is sold on a deferred payment basis. Other operating expenses of $10,172 are incurred and paid for during January; $3,772 of incurred expenses are payable at January 31.

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