Following are the transactions of a new company called Pose-for-Pics. 1 Madison Harris, the owner, invested $10,750 cash and $46,225 of photography equipment in the company. 2 The company paid $3,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,043 cash. 20 The company received $3,450 cash in photography fees earned. 31 The company paid $881 cash for August utilities. Aug. Prepare general journal entries for the above transactions.

Following are the transactions of a new company called Pose-for-Pics. 1 Madison Harris, the owner, invested $10,750 cash and $46,225 of photography equipment in the company. 2 The company paid $3,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,043 cash. 20 The company received $3,450 cash in photography fees earned. 31 The company paid $881 cash for August utilities. Aug. Prepare general journal entries for the above transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In June 2021, Wanda Fonda organized a corporation to provide drone photography services. The company, called Drone Queen Ic., began operations immediately. Transactions during the month of June were as follows: The corporation issued 60,000 shares of capital stock to Wanda Fonda in exchange for $60,000 cash. June 1 Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance. June 2 June 4 Paid Piarco Airport $2,500 to rent office and hangar space for the month. June 15 Billed customers $8,320 for aerial photographs taken during the first half of June. June 15 Paid $5,880 in salaries earned by employees during the first half of June. June 18 Paid Henry's Hangar $1,890 for maintenance and repair services on the company plane. June 25 Collected $4,910 of the amounts billed to customers on June 15. June 30 Billed customers $16,450 for aerial photographs taken during the second half of the month. June 30 Paid…
$ Mapleton Corporation builds sailboats. On January 1, Year 3, the company had the following account balances: $48,000 for both cash and common stock, Boat 25 was started on February 10 and finished on May 31. To build the boat, Mapleton had incurred cash costs of $8,640 for labor and $7,500 for materials. During the same period, Mapleton paid $11,160 cash for actual manufacturing overhead costs. The company expects to incur $210,600 of indirect overhead cost during Year 3. The overhead is allocated to jobs based on direct labor cost. The expected total labor cost for the year is $162,000. Mapleton uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required a. Use the horizontal financial statements model to record Mapleton's business events. The first row shows beginning balances. b. If Mapleton desires to earn a profit equal to 20 percent of…
The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,600. b. The firm borrowed $5,400 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,700 were purchased for cash. The original list price of the equipment was $1,900, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,400 was paid for the first month's rent. e. Inventory of $15,200 was purchased; $9,000 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $3,300 was sold for $7,000 cash. g. A newspaper ad costing $150 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,100 was purchased; cash of $1,250 was paid,…
June, Ming Chen (the owner) completed these transactions. a. Owner invested $63,000 cash in the company along with equipment that had a $11,000 market value in exchange for it common stock. b. The company paid $1,200 cash for rent of office space for the month. c. The company purchased $11,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,700 cash earned. e. The company completed work for a client and sent a bill for $7,400 to be received within 30 days. f. The company purchased additional equipment for $5,100 cash. g. The company paid an assistant $3,100 cash as wages for the month. h. The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e. i. The company paid $11,000 cash to settle the liability created in transaction c. j. The company paid $1,300 cash in dividends to the owner (sole shareholder). Required: Enter the impact of each…
A Pirate's Life for Me, Inc. has been doing business for years in New York State providing boat building services. This year is the first year it was able to expand its business to another state, North Carolina. During the year the company had $1,000,000 of sales in New York State and $1.200,000 of sales in North Carolina, A Pirate's Life for Me, Inc. had payroll and property only in New York in the amount of $1,500,000 and $5,000,000, respectively. NC applies a single sale factor apportionment formula. Please explain the tax impact to the company of doing business in North Carolina and where the company will have to file corporate tax returns this year.
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
The following are the transactions relating to the formation of Gray Mowing Services Inc. and its first month of operations. a. The firm was organized and the initial stockholders invested cash of $720. b. The company borrowed $1,080 from a relative of one of the initial stockholders; a short-term note was signed. c. Two zero-turn lawn mowers costing $576 each and a professional trimmer costing $156 were purchased for cash. The original list price of each mower was $732, but a discount was received because the seller was having a sale. d. Gasoline, oil, and several packages of trash bags were purchased for cash of $108. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $204, will be paid in 30 days. f. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $846; $558 was collected in cash, and the balance will be received within 30 days. g. Employees were paid $504 for…
In June 2021, Wanda Fonda organized a corporation to provide drone photography services. Thecompany, called Drone Queen Inc., began operations immediately. Transactions during the month ofJune were as follows:June 1 The corporation issued 60,000 shares of capital stock to Wanda Fonda in exchange for$60,000 cash.June 2 Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash downpayment and issued a note payable for the remaining balance.June 4 Paid Piarco Airport $2,500 to rent office and hangar space for the month.June 15 Billed customers $8,320 for aerial photographs taken during the first half of June.June 15 Paid $5,880 in salaries earned by employees during the first half of June.June 18 Paid Henry's Hangar $1,890 for maintenance and repair services on the companyplane.June 25 Collected $4,910 of the amounts billed to customers on June 15.June 30 Billed customers $16,450 for aerial photographs taken during the second half of themonth.June 30 Paid $6,000 in…
[The following information applies to the questions displayed below.]RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month. RHC was formed with an investment of $11,900 cash, paid in by the leader of the band on January 3 in exchange for common stock. On January 4, RHC purchased music equipment by paying $2,300 cash and signing an $9,600 promissory note payable in three years. On January 5, RHC booked the band for six concert events, at a price of $2,800 each, but no cash was collected yet. Of the six events, four were completed between January 10 and 20. On January 22, cash was collected for three of the four events. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,800 fee for one of them. On January 27, RHC paid $3,440 cash for the band’s travel-related costs. On January 28, RHC paid its band members a total of $2,490 cash for salaries and wages for the first…
Pen Supply Corp. began operations on March 1, 20Y5. On this date, the company paid for the following expenses: legal fees related to organization, $5,000; rent for the upcoming month, $1,500; license fees, $2,000; promotional costs, $1,200; and insurance for the fiscal year, $9,000. Prepare the journal entry to record the organizational expenses paid.
Solomon Company started year 1 with $270,000 in its cash and common stock accounts. During year 1, Solomon paid $202,500 cash for employee compensation and $62,100 cash for materials. Required Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Solomon used the labor and materials to make 1,500 chairs. Further, assume that Solomon sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Solomon used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account(s) shown on the income statement