Inter Company was founded in Dec 2018. Inter Company provides sports services to customers. During month of December 2018, the following transactions took place: 1-Dec Shareholders invested $480,000 cash in the business in exchange for shares. 6 Purchased a land costing $100,000 and equipment for $20,000 on account. 15 Purchased building for $17,000 cash. 16 Performed services for $11,000 on account. 18 Received $6,000 in cash from the billed customers on December 16th. 21 Paid $42,000 cash for the purchase on account on December 6th. 25 Received $12,000 cash from customer for services not performed yet. 29 Declared and paid cash dividends to shareholders for $5,000. 30 Paid advertising of the month, $1,000.
Inter Company was founded in Dec 2018. Inter Company provides sports services to customers. During month of December 2018, the following transactions took place: 1-Dec Shareholders invested $480,000 cash in the business in exchange for shares. 6 Purchased a land costing $100,000 and equipment for $20,000 on account. 15 Purchased building for $17,000 cash. 16 Performed services for $11,000 on account. 18 Received $6,000 in cash from the billed customers on December 16th. 21 Paid $42,000 cash for the purchase on account on December 6th. 25 Received $12,000 cash from customer for services not performed yet. 29 Declared and paid cash dividends to shareholders for $5,000. 30 Paid advertising of the month, $1,000.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,...
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![Question Two: Read the following transactions related to Inter Company:
Inter Company was founded in Dec 2018. Inter Company provides sports services to
customers.
During month of December 2018, the following transactions took place:
1-Dec Shareholders invested $480,000 cash in the business in exchange for shares.
Purchased a land costing $100,000 and equipment for $20,000 on account.
15
Purchased building for $17,000 cash.
16
Performed services for $11,000 on account.
18
Received $6,000 in cash from the billed customers on December 16th.
21
Paid $42,000 cash for the purchase on account on December 6th.
25
Received $12,000 cash from customer for services not performed yet.
29
Declared and paid cash dividends to shareholders for $5,000.
30
Paid advertising of the month, $1,000.
Assets
Liabilities
Equity
Retained earnings
Unearned
Share
No.
Cash
Land
Building Equipment
A/R
AP
Capital
$ 480,000
Revenue
Revenues
Expenses
Dividends
Dec-01 $ 480,000
Dec-06
Dec-15 $ (17,000)
Dec-16
Dec-18 $
$ 100,000
$ 20,000
$ 120,000
$ 17,000
$ 11,000
$ (6,000)
$ 11,00
6,000
Dec-21 $ (42,000)
Dec-25 $ 12,000
Dec-29 $ (5,000)
Dec-30 $ (1,000)|
$ (42,000)
$ 12,000
$ (5000)
$ (1,000)
(1,000)| $ (5,000)|
Totals
$ 433,000 S 100,000 $ 17,000 $ 20,000 S 5,000 $ 78,000$ 12,000 $ 480,000 S 11,000 S
2-
Prepare journal entries and post them to the related T-Accounts.
Note: Use the provided table below
Date
Account Titles
Debit
Credit
Dec-01
Dec-06
Dec-15
Dec-16
Dec-18
Dec-21
Dec-25
Dec-29
Dec-30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9eb41d42-ff33-4028-bffb-cca9355e01c8%2Fa8c4091b-a231-463e-b6e5-aa9f816facea%2Favcth1q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question Two: Read the following transactions related to Inter Company:
Inter Company was founded in Dec 2018. Inter Company provides sports services to
customers.
During month of December 2018, the following transactions took place:
1-Dec Shareholders invested $480,000 cash in the business in exchange for shares.
Purchased a land costing $100,000 and equipment for $20,000 on account.
15
Purchased building for $17,000 cash.
16
Performed services for $11,000 on account.
18
Received $6,000 in cash from the billed customers on December 16th.
21
Paid $42,000 cash for the purchase on account on December 6th.
25
Received $12,000 cash from customer for services not performed yet.
29
Declared and paid cash dividends to shareholders for $5,000.
30
Paid advertising of the month, $1,000.
Assets
Liabilities
Equity
Retained earnings
Unearned
Share
No.
Cash
Land
Building Equipment
A/R
AP
Capital
$ 480,000
Revenue
Revenues
Expenses
Dividends
Dec-01 $ 480,000
Dec-06
Dec-15 $ (17,000)
Dec-16
Dec-18 $
$ 100,000
$ 20,000
$ 120,000
$ 17,000
$ 11,000
$ (6,000)
$ 11,00
6,000
Dec-21 $ (42,000)
Dec-25 $ 12,000
Dec-29 $ (5,000)
Dec-30 $ (1,000)|
$ (42,000)
$ 12,000
$ (5000)
$ (1,000)
(1,000)| $ (5,000)|
Totals
$ 433,000 S 100,000 $ 17,000 $ 20,000 S 5,000 $ 78,000$ 12,000 $ 480,000 S 11,000 S
2-
Prepare journal entries and post them to the related T-Accounts.
Note: Use the provided table below
Date
Account Titles
Debit
Credit
Dec-01
Dec-06
Dec-15
Dec-16
Dec-18
Dec-21
Dec-25
Dec-29
Dec-30
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