During 20X1 the following transactions occurred: Sold 1,000 shares of common stock for $25 each on January 1, 20X1 Borrowed $50,000 from the bank at 10% Paid Security Deposit of $7,000 Bought Land for $20,000 Purchased 1,400 Crystals at $100 each Sold 1,100 Crystals for $250 each Paid cash for wages of $55,000 Paid twelve months' rent totalling $30,000 Paid $20,000 for advertising for 20X1 Sold 600 shares of common stock for $25 each on May 30, 20X1 Paid Utility bill for 20X1 of $18,000 Paid interest on Note Payable of $5,000 Paid a $3,000 dividend to shareholders on December 31, 20X1 Also, during the year, the company paid 50% of the 20X1 taxes. The tax rate is 30%. At December 31, 20X1, the company owed $2,000 in wages which had not yet been paid.
During 20X1 the following transactions occurred: Sold 1,000 shares of common stock for $25 each on January 1, 20X1 Borrowed $50,000 from the bank at 10% Paid Security Deposit of $7,000 Bought Land for $20,000 Purchased 1,400 Crystals at $100 each Sold 1,100 Crystals for $250 each Paid cash for wages of $55,000 Paid twelve months' rent totalling $30,000 Paid $20,000 for advertising for 20X1 Sold 600 shares of common stock for $25 each on May 30, 20X1 Paid Utility bill for 20X1 of $18,000 Paid interest on Note Payable of $5,000 Paid a $3,000 dividend to shareholders on December 31, 20X1 Also, during the year, the company paid 50% of the 20X1 taxes. The tax rate is 30%. At December 31, 20X1, the company owed $2,000 in wages which had not yet been paid.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
prepare
Transcribed Image Text:During 20X1 the following transactions occurred:
Sold 1,000 shares of common stock for $25 each on
January 1, 20X1
Borrowed $50,000 from the bank at 10%
Paid Security Deposit of $7,000
Bought Land for $20,000
Purchased 1,400 Crystals at $100 each
Sold 1,100 Crystals for $250 each
Paid cash for wages of $55,000
Paid twelve months' rent totalling $30,000
Paid $20,000 for advertising for 20X1
Sold 600 shares of common stock for $25 each on May 30,
20X1
Paid Utility bill for 20X1 of $18,000
Paid interest on Note Payable of $5,000
Paid a $3,000 dividend to shareholders on December 31,
20X1
Also, during the year, the company paid 50% of the 20X1 taxes. The tax rate is 30%.
At December 31, 20X1, the company owed $2,0000 in wages which had not yet been paid.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education