Jameson Corporation was organized on May 1. The following events occurred during the first month. a. Received $69,000 cash and a building valued at $245,000 from the five investors who organized Jameson Corporation. Each investor received 103 shares of $10 par value common stock. b. Ordered store fixtures costing $16,000. c. Borrowed $11,000 cash and signed a note due in two years. d. Purchased $22,000 of equipment, paying $1,100 in cash and signing a six-month note for the balance. e. Lent $1,200 to an employee who signed a note to repay the loan in three months. f. Received and paid for the store fixtures ordered in (b). Required: Prepare journal entries for each transaction

Jameson Corporation was organized on May 1. The following events occurred during the first month. a. Received $69,000 cash and a building valued at $245,000 from the five investors who organized Jameson Corporation. Each investor received 103 shares of $10 par value common stock. b. Ordered store fixtures costing $16,000. c. Borrowed $11,000 cash and signed a note due in two years. d. Purchased $22,000 of equipment, paying $1,100 in cash and signing a six-month note for the balance. e. Lent $1,200 to an employee who signed a note to repay the loan in three months. f. Received and paid for the store fixtures ordered in (b). Required: Prepare journal entries for each transaction

Name: Can I please have an explanation on this? Thank you! Jameson Corporati
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Can I please have an explanation on this? Thank you! Jameson Corporation was organized on May 1. The following events occurred during the first month.a. Received $69,000 cash and a building valued at $245,000 from the five investors who organized Jam

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.15MCE: Journal Entries Following is a list of transactions entered into during the first month of...

See similar textbooks

Similar questions

Malco Enterprises issued $10,000 of common stock when the company was started. In addition, Malco borrowed $36,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $72,500 of revenue on account in Year 1 and $85,200 of revenue on account in Year 2. Cash collections of accounts receivable were $61,300 in Year 1 and $71,500 in Year 2. Malco paid $39,000 of other operating expenses in Year 1 and $45,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date. What amount of total liabilities would be reported on the December 31, Year 1, balance sheet? What amount of retained earnings would be reported on the December 31, Year 1, balance sheet? What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows?
Malco Enterprises issued $10,000 of common stock when the company was started. In addition, Malco borrowed $36,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $72,500 of revenue on account in Year 1 and $85,200 of revenue on account in Year 2. Cash collections of accounts receivable were $61,300 in Year 1 and $71,500 in Year 2. Malco paid $39,000 of other operating expenses in Year 1 and $45,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date. Organize the information in accounts under an accounting equation. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? What amount of interest expense would be reported on the Year 1 income statement?
Ashvinn
Malco Enterprises issued $12,00 of common stock when the company was started. In addition, Malco borrowed $38,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $74,700 of revenue on account in Year 1 and $87,200 of revenue on account in Year 2. Cash collections of accounts receivable were $63,300 in Year 1 and $73,500 in Year 2. Malco paid $40,800 of other operating expenses in Year 1 and $47,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date. Based on this information given above, record the events in the accounting equation then answer the following questions. Enter any decreases to account balances with a minus sign. a. what amount of interest expense would Malco report on the Year 1 income statement? b. what amount of net cash flow from operating activites would Malco report on the Year 1 statement of cash flows? c. what amount of…
Pomona, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $30,000, 60 day, six percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received an $18,000, 120 day, seven percent note from B. Shore Company on account. Dec.16 Received a $14,400, 45 day, eight percent note from C. Judd on account. Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore’s account as uncollectible. Ponoma, Inc. uses the allowance method of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $24,500. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,300. Dec.31 Made the appropriate adjusting entries for interest. RequiredRecord the…
Jan5 Received $60,000 from Shophia Lebron and issued 12,000 common shares of $5 par value. Jan5 Paid $6,000 of general liability and property insurance. The disbursement by Check No. 100 was for a complete year of service. Jan6 Rented an office and furniture for $2,000 per month. Issued Check No. 101 for $6,000, representing the first and last month's rent and the security deposit.[ the security deposit (debit deposit), the last month's rent, and the current rent are to be classified separately.] Jan7 Issued Check No. 102 for $1,600 for the purchase of office supplies. Jan7 Issued Check No. 103 for $7,000 for advertising to be run in local nespaper and magazines in the month of Jan Jan10 Roxana Perini engaged My Place, House of Decor to renovate her oceanfront condominium. Received $10,000 from Roxana Perini after services were completed. Jan12 Recorded $6,000 (net 30) decorating fees earned on account from Maribel Thompson to remodel her office. Jan20 Received $8,000 from Frederick…
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 200,000 shares of $6-par-value common stock for $1,200,000 in cosh. b. Borrowed $540,000 from Oglesby National Bank and signed a 11% note due in three years. c. Incurred and paid $390,000 in salaries for the year. d. Purchesed $740,000 of merchandise inventory on account during the year. e. Sold inventory costing $570,000 for a total of $910,000, all on credit. f. Paid rent of $220,000 on the sales fecilities during the first 11 months of the year. g. Purchesed $150,000 of store equipment, paying $53,000 in cash and agreeing to pay the difference within 90 days. h. Paid the entire $97,000 owed for store equipment and $630,000 of the amount due to suppliers for credit purchases previously recorded. 1. Incurred and posid utilities expense of $36,000 during the year. J. Collected $835,000 in cash from customers during the year for credit sales previously recorded. k.…
Shott Farm Supplies Corporation purchased 800 shares of General Motors stock at $50 per share and paid a brokerage fee of $1,200. Two months later, the shares were sold for $53 per share. The brokerage fee on the sale was $1,300. Required: Prepare entries for the purchase and the sale.
Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year:Feb. 24. Acquired 1,000 shares of Tett Co. stock for $85 per share plus a $150 brokerage commission.May 16. Acquired 2,500 shares of Issacson Co. stock for $36 per share plus a $100 commission.July 14. Sold 400 shares of Tett Co. stock for $100 per share less a $75 brokerage commission.Aug. 12. Sold 750 shares of Issacson Co. stock for $32.50 per share less an $80 brokerage commission.Oct. 31. Received dividends of $0.40 per share on Tett Co. stock.Journalize the entries for these transactions.
During the fiscal year ended December 31, Duckworth Corporation engaged in the following transactions involving notes payable: Sept. 16. Purchased office equipment from Earthtime Equipment. The invoice amount was $24,000, and Earthtime agreed to accept, as full payment, on 12%, three-month note for the invoice amount. Nov. 1. Borrowed $100,000 from Sandra Duckworth, a major corporate stockholder. The corporation issued Duckworth a $100,000, 15%, 120-day note payable. Dec. 1. Purchased merchandise inventory in the amount of $5,000 from Teller Corporation. Teller accepted a 90-day, 14% note as a full settlement of the purchase. Duckworth Corporation uses a perpetual inventory system. Dec. 16. The $24,000 note payable to Earthtime Equipment matured today. Duckworth paid the accrued interest on this note and issued a new 30-day, 16% note payable in the amount of $24,000 to replace the note that matured.
On February 1, Brutus Company purchased 1,000 shares (2% ownership) of Wynne Company common stock for $25 per share. On March 20, Brutus Company sold 200 shares of Wynne stock for $4,700. Brutus received a dividend of $1.20 per share on April 25. On June 15, Marcus sold 300 shares of Wynne stock for $8,500.Prepare the journal entries to record the transactions described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15
At the beginning of the year, Corporation A purchased 8,000 shares of Corporation B's common stock for $40 per share. B reported net income of $120,000 for the year and paid dividends of $45,000. As of December 31, the market value of B's common stock was $42 per share. Assuming the shares owned by Company A represent 10% of the total outstanding stock of Company B, how much income should A report from its investment in B for the year if the shares are considered trading securities? $4,500 $12,000 $20,500