During 2025, its first year of operations as a delivery service, Pharoah Corp. entered into the following transactions.1.Issued shares of common stock to investors in exchange for $137,000 in cash.2.Borrowed $55,000 by issuing bonds.3.Purchased delivery trucks for $63,000 cash.4.Received $18,000 from customers for services performed.5. Purchased supplies for $6,600 on account.6.Paid rent of $5,900.7.Performed services on account for $10,700.8.Paid salaries of $26,700.9.Paid a dividend of $11,500 to stockholders.Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for chaStockholders' Equity in the far-right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equplace a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity itemwas reduced.)(2)(3)རྒྱ་སེ་གྱི(1)AssetsAccountsCashReceivableSuppliesEquipment

Detailed explanation: Transaction 1: Issued shares of common stock to investors in exchange for…

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Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31. 1. Issued common shares to investors in exchange for $ 90,000 in cash. 2. Borrowed $ 46,000 cash from the bank, due 2020. 3. Purchased delivery vehicles for $ 61,000 cash. 4. Received $ 24,000 from customers for services provided. 5. Purchased supplies for $ 3,700 on account. 6. Paid rent of $ 5,500. 7. Performed services on account for $ 9,000. 8. Paid salaries of $ 28,000. 9. Declared and paid a dividend of $ 12,000 to shareholders. 10. Paid income taxes of $ 200 for the month. Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Sr No Account Titles and…
Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 1. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one- year, 9% note for the balance. 2. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 3.
Casio adheres to ASPE. Casio Corp.'s transactions for the year ended December 31, 2020 included the following: 1. Purchased land for $275,000 cash. 2. Borrowed $275,000 from the bank on a long-term note. 3. Sold long-term investments for $250,000. 4. Accounts receivable decreased by $50,000. 5. Paid cash dividends of $300,000. 6. Issued 1,000 common shares for $125,000. 7. Purchased machinery and equipment for $62,500 cash. 8. Accounts payable increased by $100,000. The cash used in investing activities for 2020 was $(337,500). $(25,000). O $(187,500). O s(87,500).
The following transactions occurred for the Microchip Company. 1. On October 1, 2021, Microchip lent $98,000 to another company. A note was signed with principal and 9% interest to be paid on September 30, 2022. 2. On November 1, 2021, the company paid its landlord $11,700 representing rent for the months of November through January. Prepaid rent was debited. 3. On August 1, 2021, collected $17,700 in advance rent from another company that is renting a portion of Microchip's factory. The $17,700 represents one year's rent and the entire amount was credited to deferred rent revenue. 4. Depreciation on office equipment is $6,400 for the year. 5. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,900. The company records vacation pay as salaries expense. 6. Microchip began the year with $3,900 in its asset account, supplies. During the year, $8,400 in supplies were purchased and debited to supplies. At year-end, supplies costing $4,200…
The following transactions apply to Walnut Enterprises for 2018, its first year of operations: Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, 2018. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Paid $62,000 cash for other operating expenses during the year. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until 2019. Recognized the accrued interest at December 31, 2018. The following transactions apply to Walnut Enterprises for 2019: Paid the balance of the sales tax due for 2018. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Repaid the principal of the note and applicable interest on April 1, 2019. Paid $102,500 of other operating expenses…
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On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $478,700. The interest rate charged by the bank was 6.75%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a - Journal entry a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to deferred rent revenue. Depreciation on office equipment is $4,500 for the year. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. Microchip began the year with $2,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing…
On January 1, 2022, the ledger of Whispering Winds Corp. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, the following selected transactions occurred. Jan. 1 Borrowed $22,800 in cash from Apex Bank on a 4-month, 5%, $22,800 note. Interest will be paid at maturity. Sold merchandise for cash totaling $6,254, which includes 6% sales taxes. Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $8,820. Sold 500 units of a new product on credit at $48 per unit, plus 6% sales tax. 5 12 14 $56,000 8,820 16,100 20 During January, the company's employees earned wages of $68,000. Withholdings related to these wages were $5,202 for FICA, $4,850 for federal income tax, and $1,450 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages…
On January 1, 2024, a business borrowed $12,000 on a five-year, 8% note payable. At December 31, 2024, the business should record OA. interest payable of $960. OB. note receivable of $12,000. OC. cash payment of $12,000. OD. nothing. (The note is already on the books.)
On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,100 on December 31, 2022. The proceeds of the note were $115,800. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. Use the horizontal model to show the effects of repaying the note on December 31, 2022. Indicate the financial statement effect.
[The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: The business was started when the company received $50,000 from the issue of common stock. Purchased equipment inventory of $176,500 on account. Sold equipment for $197,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $122,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. Paid the sales tax to the state agency on $147,000 of the sales. On September 1, 2018, borrowed $20,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, 2019. Paid $5,600 for warranty repairs during the year. Paid operating expenses of $54,500 for the year. Paid $125,300 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6.…

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