Following are selected transactions of Mogg Company. A. Shareholders contribute $10,000 cash to the business in exchange for common stock. B. Employees earn $500 in wages that have not been paid at period-end. C. Inventory of $3,000 is purchased on credit. D. The inventory purchased in transaction 3 is sold for $4,500 on credit. E. The company collected the $4,500 owed to it per transaction 4. F. Equipment is purchased for $5,000 cash. G. Depreciation of $1,000 is recorded on the equipment from transaction 6. H. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $800 of supplies are still available. No supplies were purchased during this period. 1. The company paid $10,000 cash toward the principal on a note payable; also, $500 cash is paid to cover this note's interest expense for the period. J. The company receives $8,000 cash in advance for services to be delivered next period. Hint: For transaction 4, enter net effect amount for balance sheet answers. Required: 1. Record the effects of each using the financial statement effects template.
Following are selected transactions of Mogg Company. A. Shareholders contribute $10,000 cash to the business in exchange for common stock. B. Employees earn $500 in wages that have not been paid at period-end. C. Inventory of $3,000 is purchased on credit. D. The inventory purchased in transaction 3 is sold for $4,500 on credit. E. The company collected the $4,500 owed to it per transaction 4. F. Equipment is purchased for $5,000 cash. G. Depreciation of $1,000 is recorded on the equipment from transaction 6. H. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $800 of supplies are still available. No supplies were purchased during this period. 1. The company paid $10,000 cash toward the principal on a note payable; also, $500 cash is paid to cover this note's interest expense for the period. J. The company receives $8,000 cash in advance for services to be delivered next period. Hint: For transaction 4, enter net effect amount for balance sheet answers. Required: 1. Record the effects of each using the financial statement effects template.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
need answer
Transcribed Image Text:Following are selected transactions of Mogg Company.
A. Shareholders contribute $10,000 cash to the business in exchange for common stock.
B. Employees earn $500 in wages that have not been paid at period-end.
C. Inventory of $3,000 is purchased on credit.
D. The inventory purchased in transaction 3 is sold for $4,500 on credit.
E. The company collected the $4,500 owed to it per transaction 4.
F. Equipment is purchased for $5,000 cash.
G. Depreciation of $1,000 is recorded on the equipment from transaction 6.
H. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at
period-end shows that $800 of supplies are still available. No supplies were purchased during this
period.
1. The company paid $10,000 cash toward the principal on a note payable; also, $500 cash is paid to
cover this note's interest expense for the period.
J. The company receives $8,000 cash in advance for services to be delivered next period.
Hint: For transaction 4, enter net effect amount for balance sheet answers.
Required:
1. Record the effects of each using the financial statement effects template.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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