Homework Help is Here – Start Your Trial Now!
Business
Accounting
Current Attempt in Progress Crane Ltd. (CL) is a medical equipment supply company that sells, installs, and services a variety of mobility aid equipment. CL was founded in 2021 and has seen significant growth since then. CL's bookkeeper retired in July, and her replacement has asked for your assistance in recording the following transactions from the month of August 2024. Regular entries: Aug. 1 1 6 13 20 30 CL purchased a new delivery truck for $106,650, paying $59,250 cash and financing the balance using a note payable at 2% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on September 1, 2024. CL's management has determined that the truck will have a useful life of six years and a residual value of $21,330. CL paid $7,310 for an insurance policy on the new truck for the period August 1, 2024, to December 31, 2025. CL sold $42,660 of medical equipment, of which 50% was on account and the balance was cash. The cost to CL of the products sold was $14,800. The company purchased inventory on credit at a cost of $18,960. Golden Years Retirement Group (Golden), one of CL's largest customers, signed an equipment installation and service contract with CL. The contract runs from September 1, 2024, to August 30, 2025, and will mean that CL services all of Golden's medical equipment. In accordance with the contract terms, Golden paid CL $11,850, representing four months' service revenue under the contract. CL paid dividends in the amount of $29,625, which had been declared by the board (and recorded) in July 2024. Adjusting entries: Q Search

Current Attempt in Progress Crane Ltd. (CL) is a medical equipment supply company that sells, installs, and services a variety of mobility aid equipment. CL was founded in 2021 and has seen significant growth since then. CL's bookkeeper retired in July, and her replacement has asked for your assistance in recording the following transactions from the month of August 2024. Regular entries: Aug. 1 1 6 13 20 30 CL purchased a new delivery truck for $106,650, paying $59,250 cash and financing the balance using a note payable at 2% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on September 1, 2024. CL's management has determined that the truck will have a useful life of six years and a residual value of $21,330. CL paid $7,310 for an insurance policy on the new truck for the period August 1, 2024, to December 31, 2025. CL sold $42,660 of medical equipment, of which 50% was on account and the balance was cash. The cost to CL of the products sold was $14,800. The company purchased inventory on credit at a cost of $18,960. Golden Years Retirement Group (Golden), one of CL's largest customers, signed an equipment installation and service contract with CL. The contract runs from September 1, 2024, to August 30, 2025, and will mean that CL services all of Golden's medical equipment. In accordance with the contract terms, Golden paid CL $11,850, representing four months' service revenue under the contract. CL paid dividends in the amount of $29,625, which had been declared by the board (and recorded) in July 2024. Adjusting entries: Q Search

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
None
Current Attempt in Progress Crane Ltd. (CL) is a medical equipment supply company that sells, installs, and services a variety of mobility aid equipment. CL was founded in 2021 and has seen significant growth since then. CL's bookkeeper retired in July, and her replacement has asked for your assistance in recording the following transactions from the month of August 2024. Regular entries: Aug. 1 1 6 13 20 30 CL purchased a new delivery truck for $106,650, paying $59,250 cash and financing the balance using a note payable at 2% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on September 1, 2024. CL's management has determined that the truck will have a useful life of six years and a residual value of $21,330. CL paid $7,310 for an insurance policy on the new truck for the period August 1, 2024, to December 31, 2025. CL sold $42,660 of medical equipment, of which 50% was on account and the balance was cash. The cost to CL of the products sold was $14,800. The company purchased inventory on credit at a cost of $18,960. Golden Years Retirement Group (Golden), one of CL's largest customers, signed an equipment installation and service contract with CL. The contract runs from September 1, 2024, to August 30, 2025, and will mean that CL services all of Golden's medical equipment. In accordance with the contract terms, Golden paid CL $11,850, representing four months' service revenue under the contract. CL paid dividends in the amount of $29,625, which had been declared by the board (and recorded) in July 2024. Adjusting entries: Q Search
Transcribed Image Text:Current Attempt in Progress Crane Ltd. (CL) is a medical equipment supply company that sells, installs, and services a variety of mobility aid equipment. CL was founded in 2021 and has seen significant growth since then. CL's bookkeeper retired in July, and her replacement has asked for your assistance in recording the following transactions from the month of August 2024. Regular entries: Aug. 1 1 6 13 20 30 CL purchased a new delivery truck for $106,650, paying $59,250 cash and financing the balance using a note payable at 2% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on September 1, 2024. CL's management has determined that the truck will have a useful life of six years and a residual value of $21,330. CL paid $7,310 for an insurance policy on the new truck for the period August 1, 2024, to December 31, 2025. CL sold $42,660 of medical equipment, of which 50% was on account and the balance was cash. The cost to CL of the products sold was $14,800. The company purchased inventory on credit at a cost of $18,960. Golden Years Retirement Group (Golden), one of CL's largest customers, signed an equipment installation and service contract with CL. The contract runs from September 1, 2024, to August 30, 2025, and will mean that CL services all of Golden's medical equipment. In accordance with the contract terms, Golden paid CL $11,850, representing four months' service revenue under the contract. CL paid dividends in the amount of $29,625, which had been declared by the board (and recorded) in July 2024. Adjusting entries: Q Search
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS