A company had the following transactions during September, the first month of its operations:●• Issued 20,000 shares of common stock in exchange for $560,000.• Purchased equipment for $280,000, using a $140,000 cash down payment and signing a note payable for the balance.• Received $1,400 from a customer for services to be performed in November.• Total monthly sales: Cash sales $70,000 Credit Sales (Acct. Receivable): $25,200·• Purchased supplies on credit for $32,200.• Made a $42,000 payment on the note payable from the purchase of the land.• Collected $11,200 from customers on account..• Paid $3,500 for September employee wages.• Received a utility bill for $700 which will be paid next month.What is total stockholders' equity at the end of September?Select one:OOOOOa. $655,200b. $625,800C. $560,000d. $783,300e. $651,000

Stockholders equity is the total of stock and net profit (loss) for the period

Answered: O,000 shares of con ed equipment for $…

O,000 shares of con ed equipment for $ $1,400 from a cus nthly sales: Cash s ed supplies on crec 542,000 payment c $11,200 from cus

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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P10-19A
Multiple Choice a. $900. b. $1,400. c. $1,900. d. $2,400. e. $2,600.
10:12 M A O N ll 86%i Following are the transactions of PQR Company in year 2019 and 2020: 2019 July 1 October 1 Borrowed $25,000 cash from POL Bank by signing a 7%, 6-month, $25,000 note. Purchased Land from GHI Itd. by signing a 9%, 2-month, $40,000 note. Purchased $60,000 of merchandise on credit from XYZ Itd, terms are n/30. PQR uses the perpetual November 1 inventory system. December 1 Paid the amount due on the note to GHI Itd. at the maturity date. Replaced the account payable of XYZ Itd. with a 10%, 3-month, $60,000 note. December 1 December 31 Accrued interest on the notes payable.. 2020 January 1 March 1 Paid the amount due on the note to POL Bank at the maturity date. Paid the amount due on the note to XYZ Itd. at the maturity date. Question No. 8 Journalize the transactions of year 2019. Question No. 9 Prepare the current liabilities section at December 31, 2019. Also, journalize the transactions of year 2020. II
The capital accounts and profit and loss ratio of A and B are shown below: Capital Profit and Loss ratio P 60,000 40,000 P 100,000 50% 50% 100% A в Give the journal entries under the following cases: 1. C purchases one-half interest of A for P35,000. 2. B sells one-fourth of his interest to C for P12,000. 3. C purchases one-half interest of both A and B for P55,000 (use two methods) 4. C invests P20,000 for a one-sixth interest in the new firm. The agreeed new capital is p120,000. 5. C invests P40,000 for a one-fourth interest in the new firm. 6. C invests P35,000 for a one-fourth interest in the new firm with agreed capitalization of *135,000. 7. Cinvests P35,000 for a one-fourth interest in the firm. The agreed new capital is P140,000. After the admission of C, the capital con- tributions must be made equal to the new profit and loss ratio. 8. Cinvests P40,000 for a one-third interest in the firm with a total new capital of P150,000.
Grace Inc. purchase Charm Inc. Their condensed balance sheets before combination show: Grace Charm Book Value Fair ValueASSETS 14,000,000 1,750,000 1,900,000Liabilities 9,975,000 614,000Ordinary Share, P100 par 5,250,000 875,000Share Premium 436,000Retained Earnings (deficit) -1,225,000 -175,000Liabilities and SHE 14,000,000 1,750,000 Grace issued its own debt and equity securities as a consideration for the net identifiable asset of Charm. Grace incurred P50,000 in issuing its P600,000 par bonds and P60,000 in issuing its P500,000 par shares of stock. Grace bonds is currently selling at 97 while its share of stock is at 120. How much is the total…
Camaro GTO Torino Cash $ 2,400 $ 230 $ 1,300 Short-term investments 0 0 600 Current receivables 260 510 500 Inventory 2,175 2,020 3,050 Prepaid expenses 300 600 900 Total current assets $ 5,135 $ 3,360 $ 6,350 Current liabilities $ 2,220 $ 1,320 $ 3,550 a. Compute the acid-test ratio for each of the separate cases above.b. Which company is in the best position to meet short-term obligations?
The following trial balance has been extracted from the books of Abraham as at 31st March 2023 UGX 000 UGX 000 Administrative expense 250 Distribution cost 295 Share capital (all ordinary shares of UGX 1 each 270 Share premium 80 Revaluation reserve 20 Dividend 27 Cash at bank and hand 3 Receivables 233 Interest paid 25 Dividend received 15 Interest received 1 Land and buildings at cost (land 380, building 100) 480 Land and building acc. Dep 30 Plant and machinery 400 Plant and machinery acc. Dep 170 Retained earnings account (at April 2022 235 Purchases 1260 Sales 2165 Inventory at 1 April 2022 140 Trade payables 27 Bank loan 100 Total 3113 3113 Additional Information Inventory at 31st March 2023 was valued at a cost UGX 95000. Include in this…
X Co. has the following information: Sale $ 1,200,000 Cost of sales $800,000 Operating expenses $200,000 current liabilities $120,000 Non-current liabilities $200,000 share capital $ 500,000 Retained earnings $ 300,000 the gross margin ratio is а. 3 x b. 20% С. 17% d. 34%
CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash P500,000 P500,000 Accounts Payable P450,000 P440,000 Accounts Receivable 250,000 240,000 Mortgage Payable 200,000 220,000 Inventory 155,000 200,000 Ordinary Shares 595,000 - Fixed Assets (Net) 600,000 520,000 Retained Earnings 260,000 - SYANO COMPANY Book Value Fair Value Book Value Fair Value Cash P300,000 P300,000 Accounts Payable P350,000 P340,000 Accounts Receivable 150,000 160,000 Mortgage Payable 200,000 220,000 Inventory 125,000 100,000 Ordinary Shares 250,000 - Fixed Assets (Net) 400,000 420,000 Retained Earnings 175,000 - If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct,…
Q14: The following are the Condensed statement of Financial Position of Company A and on december 31,2020. A В Current Assets. 2562500 7639375 Plant and Equipment 768500 22918125 Current liability 555000 300,000 long Term Debt. 2220000. 500,000 Share Premium 1250,000 100,000 Retained Earning. 1609000. 425000 Additional Paid-in 1516000. 437500 Сapital 79 Company C acquires the Net Asset of Both A and B. Paying Cash in Amount of 185000 and by issuing 198500 shares to A, Paying of 72000 and by issuing 54350 shares is 30 to B' Par cash in the amount by issuing 54350 Shares value of Share is 30 and market value on acquisition is 40. Requirments: a) Entry that made in the Book of A. b) Entry that made in the Book of B. c) Entry that made in the Book of C.
Problem4 Current E & P $400,000 an Accumulated E & P 200,000. During the year Zeta distributes $800,000 to shareholders(A & B-$400, 000 to each) A has a basis in his stock $50,000 and B has a a basis of 200,000 Calculate the effect of the distribution on A and B