Following are the transactions for Valdez Services.a. The company pald $2,000 cash for payment on a 6-month-old account payable for office supplies.b. The company pald $1,200 cash for the Just completed two-week salary of the receptionist.c. The company pald $39,000 cash for equipment purchased.d. The company pald $800 cash for this month's utilities.e. The owner (B. Valdez) withdrew $4,500 cash from the company for personal use.1. Prepare general journal entries for the above transactions of Valdez Services.Vlew transaction lletJournal entry worksheet4 523The company paid $2,000 cash for payment on a 6-month-old account payablefor office supplies.Note: Enter debits before credits.TransactionGeneral JournalDebitCredita.Record entryClear entryVlew general Journal2 Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transactlon Itproperly describes.ReasonTransactionThis transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occurin the process of providing goods or services to customers.This transaction decreased cash in settlement of a previously existing liability (equity did not change). Suppliesexpense is recorded when assets are used, not necessarily when cash is paid.This transaction involves the purchase of an asset. The form of the company's assets changed, but total assetsdid not (and neither did equity). Following are the transactions of a new company called Pose-for-Pics.Aug. 1 Madison Harris, the owner, invested $8,500 cash and $36,550 of photography equipment in the company.2 The company paid $2,700 cash for an insurance policy covering the next 24 months.5 The company purchased office supplies for $1,615 cash.20 The company received $2,050 cash in photography fees earned.31 The company paid $867 cash for August utilities.Prepare general journal entrles for the above transactions.Vlew transaction IlatJournal entry worksheet1234 5Madison Harris, the owner, invested $8,500 cash and $36,550 of photographyequipment in the company.Note: Enter debits before credits.DateGeneral JournalDebitCreditAug 01Record entryClear entryVlew general journal

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During Year 8, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 7. 2. Purchased equipment and a van for a lump sum of $36,000 cash on January 2, Year 8. The equipment was appraised for $10,000 and the van was appraised for $30,000. 3. Paid $9,000 on May 1, Year 8, for one year's office rent in advance. 4. Purchased $300 of supplies on account. 5. Purchased 120 alarm systems at a cost of $280 each. Paid cash for the purchase. 6. After numerous attempts to collect from customers, wrote off $2,350 of uncollectible accounts receivable. 7. Sold 115 alarm systems for $580 each. All sales were on account. 8. Record the cost of goods sold related to the sale from Event 7 using the FIFO method. 9. Billed $86,000 of monitoring services for the year. Credit card sales amounted to $36,000, and the credit card company charged a 4 percent fee. The remaining $50,000 were sales on account. 10. Replenished the petty cash fund on June 30. The fund…
Davos Company performed services on account for $160,000 in Year 1. Davos collected $120,000 cash from accounts receivable during Year 1, and the remaining $40,000 was collected in cash during Year 2. Required a. e. & f. Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account. Record the Year 2 cash collection in the appropriate T-accounts.
A business purchases equipment by payingOR8, 000 in cash and issuing a note payable of OR12, 000. Which of the following journal entries would be recorded? Select one: O a. Equipment 8,000 Notes payable 4,000 Cash 12,000 O b. Equipment 20,000 Notes payable 12,000 Cash O c. Cash 8,000 Notes payable 4,000 Equipment 12,000 O d. Cash 8,000 Notes payable 12,000 Equipment 20,000
During the first year of operation, Year 1, McGinnis Appliance recognized $292,000 of service revenue on account. At the end of Year 1, the accounts receivable balance was $57,400. Even though this is his first year in business, the owner believes he will collect all but about 4 percent of the ending balance. Required a. What amount of cash was collected by McGinnis during Year 1? b. Assuming the use of an allowance system to account for uncollectible accounts, what amount should McGinnis record as uncollectible accounts expense in Year 1? c. What is the net realizable value of receivables at the end of Year 1? d. Show the effect of these transactions on the financial statements by recording the appropriate amounts in a horizontal statements model like the one shown here. When you record amounts in the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If element is not affected by the event, leave the cell…
The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,390 from a local bank on a note due in six months. b. Received $5,080 cash from investors and issued common stock to them. c. Purchased $1,900 in equipment, paying $650 cash and promising the rest on a note due in one year. d. Paid $750 cash for supplies. e. Bought and received $1,150 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginni Debit Beginning Balance Ending Balance Debit F Cash Equipment Credit Credit Debit Beginning Balance Ending Balance Debit Supplies Accounts Payable
Prepare the following journal entry; all transactions listed occurred in January: The company purchased a delivery van for deliveries. The purchase price was $21,500. A down payment of $5,000 cash was paid by check, and the company signed a promissory note for the remaining amount owed.
During its first year of operations, a company entered into the following transactions: • Borrowed $5,150 from the bank by signing a promissory note. • Issued stock to owners for $11,500. • Purchased $1,150 of supplies on account. Paid $550 to suppliers as payment on account for the supplies purchased. What is the amount of total assets at the end of the year? Multiple Choice O O $17,250 $17,800 $5,750 $16,650
s
Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. A. The owners invested $9,000 from their personal account to the business account. B. Paid rent $750 with check #101. C. Initiated a petty cash fund $550 with check #102. D. Received $850 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement: Office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107. Prepare the journal entries. If an amount box does not require an entry, leave it blank. A. В. E. F. G. Н. II II II 1I I II II I II II 1I I1 III II II D.
Garcia Trade has the following cash transactions for the period. Accounts Amounts Cash received from sale of products to customers $31,000 Cash received from the bank for long-term loan 36,000 Cash paid to purchase factory equipment (41,000) Cash paid to merchandise suppliers (10,200) Cash received from the sale of an unused warehouse 11,200 Cash paid to workers (22,200) Cash paid for advertisement (2,200) Cash received for sale of services to customers 21,000 Cash paid for dividends to stockholders (4,200) Assume the balance of cash at the beginning of the period is $3,200. Required: 1. Calculate the ending balance of cash.2. Prepare a statement of cash flows.
Record each transaction in a journal entry. Explanations are not required.
Of the following transactions, which should be recorded as income? Of the following transactions, which should be recorded as income? Harry's Hats sold inventory on credit for $ 3000. Chandler & Co Plumbing's owner contributes $10 000 of personal funds to the business. M. Witham borrowed $80 000 from the bank. T. O'Toole pays $5500 for goods sold to her on credit last month.

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