Fealty Company had the following transactions during 2022. All transactions were for cash payments. Fealty has a year-end of December 31 and a beginning cash balance of $13,500. Date June 30th July 1st October 31st December 1st December 31st Description Paid $12,000 in cash for advertising. Ads will air for the next 12 months. Borrowed $15,000 on a 10-month note payable at 5% interest. Interest is payable when the note matures on January 31 Paid $10,000 for the next 8-months of rent. Customers bought $1,500 worth of gift cards. Gift cards expire in 12 months. Customers redeemed $200 worth of gift cards sold December 1st
Fealty Company had the following transactions during 2022. All transactions were for cash payments. Fealty has a year-end of December 31 and a beginning cash balance of $13,500. Date June 30th July 1st October 31st December 1st December 31st Description Paid $12,000 in cash for advertising. Ads will air for the next 12 months. Borrowed $15,000 on a 10-month note payable at 5% interest. Interest is payable when the note matures on January 31 Paid $10,000 for the next 8-months of rent. Customers bought $1,500 worth of gift cards. Gift cards expire in 12 months. Customers redeemed $200 worth of gift cards sold December 1st
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Q.5.
Subject :- Account
Transcribed Image Text:Fealty Company had the following transactions during 2022. All transactions were for cash payments. Fealty has a year-end of
December 31 and a beginning cash balance of $13,500.
Date
June 30th
July 1st
October 31st
December 1st
December 31st
Description
Paid $12,000 in cash for advertising. Ads will air for the next 12
months.
Borrowed $15,000 on a 10-month note payable at 5% interest.
Interest is payable when the note matures on January 31st
Paid $10,000 for the next 8-months of rent.
Customers bought $1,500 worth of gift cards. Gift cards expire
in 12 months.
Customers redeemed $200 worth of gift cards sold December
1st
Assuming Fealty uses accrual accounting; compute the total value of current liabilities that will appear in Fealty's December 31, 2022
balance sheet.
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