On January 1, 2023, Caroline Lampron and Jenni Meno formed a computer sales and service enterprise in Montreal by investing $117,000 cash. The new company, Martinez Sales and Service, had the following transactions in January: 1. Paid $7,800 in advance for three months' rent of office, showroom, and repair space. 2. 3. 4. 5. Purchased 40 personal computers at a cost of $1,950 each, six graphics computers at a cost of $3,900 each, and 25 printers at a cost of $585 each, paying cash on delivery. Sales, repair, and office employees earned $16,380 in salaries during January, of which $3,900 was still payable at the end of January. Sold 30 personal computers for $3,315 each, four graphics computers for $5,850 each, and 15 printers for $975 each. Of the sales amounts, $97,500 was received in cash in January and $39,975 was sold on a deferred payment plan. Other operating expenses of $10,920 were incurred and paid for during January; $2,600 of incurred expenses were payable at January 31. -Your answer is partially correct. Using the transaction data above, prepare (1) a cash basis statement of financial position and (2) an accrual basis statement of financial position as at January 31, 2023. (List Current Assets in order of liquidity.) Martinez Sales and Service Statement of Financial Position Assets Cash Accounts Receivable Inventory Prepaid Rent Total Assets Liabilities and Owners' Equity Accounts Payable Salaries and Wages Payable SA
On January 1, 2023, Caroline Lampron and Jenni Meno formed a computer sales and service enterprise in Montreal by investing $117,000 cash. The new company, Martinez Sales and Service, had the following transactions in January: 1. Paid $7,800 in advance for three months' rent of office, showroom, and repair space. 2. 3. 4. 5. Purchased 40 personal computers at a cost of $1,950 each, six graphics computers at a cost of $3,900 each, and 25 printers at a cost of $585 each, paying cash on delivery. Sales, repair, and office employees earned $16,380 in salaries during January, of which $3,900 was still payable at the end of January. Sold 30 personal computers for $3,315 each, four graphics computers for $5,850 each, and 15 printers for $975 each. Of the sales amounts, $97,500 was received in cash in January and $39,975 was sold on a deferred payment plan. Other operating expenses of $10,920 were incurred and paid for during January; $2,600 of incurred expenses were payable at January 31. -Your answer is partially correct. Using the transaction data above, prepare (1) a cash basis statement of financial position and (2) an accrual basis statement of financial position as at January 31, 2023. (List Current Assets in order of liquidity.) Martinez Sales and Service Statement of Financial Position Assets Cash Accounts Receivable Inventory Prepaid Rent Total Assets Liabilities and Owners' Equity Accounts Payable Salaries and Wages Payable SA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On January 1, 2023, Caroline Lampron and Jenni Meno formed a computer sales and service enterprise in Montreal by investing
$117,000 cash. The new company, Martinez Sales and Service, had the following transactions in January:
1. Paid $7,800 in advance for three months' rent of office, showroom, and repair space.
2.
3.
4.
5.
Purchased 40 personal computers at a cost of $1,950 each, six graphics computers at a cost of $3,900 each, and 25 printers
at a cost of $585 each, paying cash on delivery.
Sales, repair, and office employees earned $16,380 in salaries during January, of which $3,900 was still payable at the end of
January.
Sold 30 personal computers for $3,315 each, four graphics computers for $5,850 each, and 15 printers for $975 each. Of the
sales amounts, $97,500 was received in cash in January and $39,975 was sold on a deferred payment plan.
Other operating expenses of $10,920 were incurred and paid for during January; $2,600 of incurred expenses were payable
at January 31.
Transcribed Image Text:-Your answer is partially correct.
Using the transaction data above, prepare (1) a cash basis statement of financial position and (2) an accrual basis statement of
financial position as at January 31, 2023. (List Current Assets in order of liquidity.)
Martinez Sales and Service
Statement of Financial Position
Assets
Cash
Accounts Receivable
Inventory
Prepaid Rent
Total Assets
Liabilities and Owners' Equity
Accounts Payable
Salaries and Wages Payable
SA
<A
Cash Basis
101400
+A
Accrual Basis
101400
39975
44850
7800
2600
109200
188825
2600
3900
Owners' Equity
109200
182325
Total Liabilities and Owners' Equity $
109200
188825
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education