Journalize 2021 transactions. Then, prepare ins financial statements.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PROBLEM 1:
Application of accounting cycle step 1 to step 7. Fighting.
Journalize 2021 transactions. Then, prepare ns financial statements.
As of Dec. 31, 2020, the accounting records for HG Collins Outdoor Ad Concepts contained the fatlowing
balances:
ASSETS
LIABILITIES and EQUITY
Cash
180,000
Accounts Payable
34,000
Accounts Receivable 110,000
Land
HG, Capital
346,000
90.000
IOIAL
380,000
390.000
The fotlowing events apply to 2021
Jan. 1
Received 100,000 additional cash investments from owner.
Purchased a service vehicle that cost 80,000. The vehicle has an 8,000-salvage value and
a 3-year usetul life.
1 Borrowed 100,000 by issuing a note that carried a 9% annuat interest rate, 1-year term.
1
Feb.
Paid 24,000 cash in advance for a 1-year lease for office space.
Mar.
HG withdraw 30,000 for emergency personal use.
Apr. 1
Acquire land cost 70,000, cash.
May
1
Made a cash payment an accounts payable amounting to 15,000
July
Received 42,000 cash in advance as a retainer for services to be performed monthly
over the year.
Sept. 1
Sold land for 100,000 cash. The land originally cost 90,000.
Oct. 1
Purchased 20,000 supplies on account.
Nov.
Purchased a 1-year 50,000 certificate deposit that paid a 6% annuat interest.
Dec.
31
Total earned service revenues on account for the year, 250,000
31
Total cash collection from accounts receivable, 200,000
31
Incurred operating expenses on account, 80,000
31
Accrued salaries not yet recorded, 32,000
31
Only 1,000 of supplies remained on hand.
Transcribed Image Text:PROBLEM 1: Application of accounting cycle step 1 to step 7. Fighting. Journalize 2021 transactions. Then, prepare ns financial statements. As of Dec. 31, 2020, the accounting records for HG Collins Outdoor Ad Concepts contained the fatlowing balances: ASSETS LIABILITIES and EQUITY Cash 180,000 Accounts Payable 34,000 Accounts Receivable 110,000 Land HG, Capital 346,000 90.000 IOIAL 380,000 390.000 The fotlowing events apply to 2021 Jan. 1 Received 100,000 additional cash investments from owner. Purchased a service vehicle that cost 80,000. The vehicle has an 8,000-salvage value and a 3-year usetul life. 1 Borrowed 100,000 by issuing a note that carried a 9% annuat interest rate, 1-year term. 1 Feb. Paid 24,000 cash in advance for a 1-year lease for office space. Mar. HG withdraw 30,000 for emergency personal use. Apr. 1 Acquire land cost 70,000, cash. May 1 Made a cash payment an accounts payable amounting to 15,000 July Received 42,000 cash in advance as a retainer for services to be performed monthly over the year. Sept. 1 Sold land for 100,000 cash. The land originally cost 90,000. Oct. 1 Purchased 20,000 supplies on account. Nov. Purchased a 1-year 50,000 certificate deposit that paid a 6% annuat interest. Dec. 31 Total earned service revenues on account for the year, 250,000 31 Total cash collection from accounts receivable, 200,000 31 Incurred operating expenses on account, 80,000 31 Accrued salaries not yet recorded, 32,000 31 Only 1,000 of supplies remained on hand.
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