ezto.mheducation.comAssignments: ACCTG-4A-80575-2021SPM Question 8 - Chapter 1 Exercises ConnectChapter 1 Exercises iSavedHelpSave & ExitCheck myMing Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June,Ming Chen (the owner) completed these transactions:0.33a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its commonstock.pointsb. The company paid $1,500 cash for rent of office space for the month.C. The company purchased $10,000 of additional equipment on credit (payment due within 30 days).d. The company completed work for a client and immediately collected the $2,500 cash earned.e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days.f. The company purchased additional equipment for $6,000 cash.g. The company paid an assistant $3,000 cash as wages for the month.h. The company collected $5,000 cash as a partial payment for the amount owed by the client in transaction e.i. The company paid $10,000 cash to settle the liability created in transaction c.j. The company paid $1,000 cash in dividends to the owner (sole shareholder).eBookPrintReferencesRequired:Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with aminus sign.)LiabilitiesEquity%3DAssetsCommonStockAccountsDividendsRevenueExpensesAccountsCashEquipmentPayableReceivable$+75,000$15,000%D$460,000$+a.0.1,500+b.(1,500) +1,5000.75,00015,000%D+Bal.58,5000.0.10,00010,000С.1,50025,00010,000 +75,000%DBal.58,5002,500%3Dd.2,5000.2,5001,50010,00075,00025,000%3DBal.61,000ol +8.000ol +%3D+8.000e.O OO O%24%24%24+%24IIII00

Name: ezto.mheducation.comAssignments: ACCTG-4A-80575-2021SPM Question 8 -
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: ezto.mheducation.comAssignments: ACCTG-4A-80575-2021SPM Question 8 - Chapter 1 Exercises ConnectChapter 1 Exercises iSavedHelpSave & ExitCheck myMing Chen began a professional practice on June 1 and plans to prepare financial statements at the end o

Accounting equation refers to the equation which represents company's total assets are equal to the…

Business

Accounting

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions: a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its common stock. b. The company paid $1,500 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days. f. The company purchased additional equipment for $6,000 cash. a The company paid an assistant $3.000 cash as wages for the month,

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions: a. Owner invested $60,000 cash in the company along with equipment that had a $15,000 market value in exchange for its common stock. b. The company paid $1,500 cash for rent of office space for the month. c. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected the $2,500 cash earned. e. The company completed work for a client and sent a bill for $8,000 to be received within 30 days. f. The company purchased additional equipment for $6,000 cash. a The company paid an assistant $3.000 cash as wages for the month,

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

During the month of September, the Bridge City Go-Kart Company had the following business activities: a. On September 1, paid rent on the track facility for six months at a total cost of $25,200. b. On September 1, received $81,000 for season tickets for 12-month admission to the racetrack. c. On September 1, booked the racetrack for a private organization that will use the track one day per month for $8.500 each time, to be paid in the following month. The organization uses the track on September 30. d. On September 1, hired a new manager at a monthly salary of $6.900, to be paid the first Monday following the end of the month. Required: First prepare the journal entry, if any, required to record each of the initial business activities on September 1. Then, prepare the adjusting journal entries, if any, required on September 30. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Lowell Company sells swimming pool supplies and equipment. The majority of Lowell's customers are small, family-owned businesses. Assume that Lowell Corporation completed the following transactions during the current year. Lowell's fiscal year ends on December 31. September 15 October 1 October 5 October 15 December 12 December 31 Required: Paid a supplier $129,500 for inventory previously purchased on credit. Borrowed $904,500 from Mass Bank for general use; signed an 11-month, 5% annual interest-bearing note for the money. Received a $42,250 customer deposit from Jim Scanlon for services to be performed in the future. Performed $19,800 of the services paid for by Mr. Scanlon. Received electric bill for $12,450. Lowell plans to pay the bill in early January. Determined wages of $52,900 earned but not yet paid on December 31 (disregard payroll taxes). 1.&2. Prepare journal entries for each of these transactions.
During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. Began business by making a deposit in a company bank account of $60,000, in exchange for 6,000 shares of $10 par value common stock. July 1 July 3 Paid the current month's rent, $3,500 July 5 Paid the premium on a 1-year insurance policy, $4,200 July 7 Purchased supplies on account from Little Company, $1,000. July 10 Paid employee salaries, $3,500 July 14 Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1. Note: Use accounts payable for the balance due. July 15 Received cash for preparing tax returns for the first half of July, $8,000 July 19 Made payment on account to Lake Company, $500. July 31 Received cash for preparing tax returns for the last half of July, $9,000 July 31 Declared and paid cash…
The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $64,000 and $99,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Grecco invested an additional $11,000. During the year, Grecco and Rosenfeld withdrew $43,000 and $53,000, respectively, and net income for the year was $84,000. Revenues were $654,000, and expenses were $570,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank.
In September of year 1, Jason agreed to a contract in which he agreed to redo the floors in an office building and be paid $15,000 for the job. The owner of the office building gave Jason the first $5,000 payment toward the contract on the day the contract was signed. Jason started and completed the work in November of year 1. Upon completion of the project, Jason's bookkeeper mailed an invoice to the building owner for the balance owed, with a due date of February 15th of year 2. Jason received payment in full from the building owner in January of year 2. Jason uses the accrual basis method of accounting for both financial and tax reporting purposes. Which amounts should Jason report as income from this job when filing taxes in year 1 and year 2?
Alex Vera organized Succulent Express at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions: Terry Mason invested $32,750 in Succulent Express in exchange for common stock. Paid $4,200 on February 1 for an insurance premium on a one-year policy. Purchased supplies on account, $1,560. Received fees of $48,270 during February. Paid expenses as follows: wages, $22,200; rent, $3,700; utilities, $1,850; and miscellaneous, $2,035. Paid dividends of $8,850. There was $858 of supplies on hand as of February 28. Assume that adjusting entries for usage of supplies and expiration of prepaid insurance were recorded on February 28, 20Y4. Based on the information above, determine the net cash flow from operating activities as of February 28, 20Y4.
Barbara Jones opened Barb’s Book Business on February 1. You have been hired to maintain the company’s financial records. The following transactions occurred in February, the first month of operations. a. Received shareholders’ cash contributions on February 1 totaling $19,000 to form the corporation; issued 1,000 shares of common stock. b. Paid $3,060 cash on February 2 for three months’ rent for office space. TIP: For convenience, simply record the full amount of the payment as an asset (Prepaid Rent). At the end of the month, this account will be adjusted to its proper balance. c. Purchased and received supplies on February 3 for $695 cash. d. Signed a promissory note on February 4, payable in two years; deposited $12,900 in the company’s bank account. e. On February 5, paid cash to buy equipment for $5,000 and land for $7,900. f. Placed an advertisement in the local paper on February 6 for $500 cash. g. Recorded sales on February 7 totaling $2,150; $1,250 was in…
Janet Enterprises incorporated on May 3, current year. The company engaged in the following transactions during its first month of operations. May 3: Issued capital stock in exchange for $950,000 cash. May 4: Paid May office rent expense of $1,800. May 5: Purchased office supplies for $600 cash. The supplies will last for several months. May 15: Purchased office equipment for $12,400 on account. The entire amount is due June 15. May 18: Purchased a company car for $45,000. Paid $15,000 cash and issued a note payable for the remaining amount owed. May 20: Billed clients $120,000 on account. May 26: Declared an $8,000 dividend. The entire amount will be distributed to shareholders on June 26. May 29: Paid May utilities of $500. May 30: Received $90,000 from clients billed on May 20. May 31: Recorded and paid salary expense of $32,000. A partial list of the account titles used by the company includes the following. Cash Dividends Payable…
During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. Began business by making a deposit in a company bank account of $60,000, in exchange for 6,000 shares of $10 par value common stock. July 1 July 3 Paid the current month's rent, $3,500 July 5 Paid the premium on a 1-year insurance policy, $4,200 July 7 Purchased supplies on account from Little Company, $1,000. July 10 Paid employee salaries, $3,500 July 14 Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1. Note: Use accounts payable for the balance due. July 15 Received cash for preparing tax returns for the first half of July, $8,000 July 19 Made payment on account to Lake Company, $500. July 31 Received cash for preparing tax returns for the last half of July, $9,000 July 31 Declared and paid cash…
The transactions for October, the first month of operation, for Paul's Pet Services are summarized below. Paul invested $5,000 of cash, and equipment and furniture worth $2,400 for shares. Took out a $6,000 1 year bank loan with an interst rate of 12% to fund operations. Interest is due at the end of each month. Paid $2,000 for the first 2 month's rent. Paid $500 for advertising and promotion for the grand opening in October. Bought $2,000 worth of inventory for the store and paid immediately. Received $180 from a client for 6 monthly grooming appointments for a dog. Paul performed the grooming for October. Purchased another $1,000 worth of inventory, to be paid on November 25th. During the month sold 60% of the initial inventory purchased on Oct 10 for $3,400; $2,000 in cash and the remainder on credit. Depreciation on equipment and furniture was $400 for the month. Prepare an income statement and Balance Sheet Worksheet for Paul's Pet services. Assess the performance of Paul's Pet…