Delta Solutions began operations on July 1, 2023, and entered into the following transactions during 2023: 1. On July 1, Delta Solutions sold common stock to owners for $150,000 and borrowed $120,000 from a bank on a 12-month, 10% note payable. 2. On August 1, Delta purchased machinery costing $90,000, paying $60,000 in cash and agreeing to pay the remainder within 4 months. 3. On September 1, Delta received $72,000 cash in advance from a customer for services to be rendered over 12 months. 4. On October 1, Delta paid $24,000 for a 1-year insurance policy in advance. 5. On December 1, Delta paid $15,000 in cash dividends to shareholders. Required: Calculate the total liabilities that Delta Solutions would report on its December 31, 2023 balance sheet, after recording all adjusting entries.

Delta Solutions began operations on July 1, 2023, and entered into the following transactions during 2023: 1. On July 1, Delta Solutions sold common stock to owners for $150,000 and borrowed $120,000 from a bank on a 12-month, 10% note payable. 2. On August 1, Delta purchased machinery costing $90,000, paying $60,000 in cash and agreeing to pay the remainder within 4 months. 3. On September 1, Delta received $72,000 cash in advance from a customer for services to be rendered over 12 months. 4. On October 1, Delta paid $24,000 for a 1-year insurance policy in advance. 5. On December 1, Delta paid $15,000 in cash dividends to shareholders. Required: Calculate the total liabilities that Delta Solutions would report on its December 31, 2023 balance sheet, after recording all adjusting entries.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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