Not use ai please don't On June 30, 2014, the balance sheet of Zorab & Co. showed total assetsof $400,000, total liabilities of $300,000, and owner's equity of $100,000.The following transactions occurred in July 2004:The owner invested an additional $70,000 cash in the business.The business purchased equipment for $150,000, paying $60,000 cashand issuing a note payable for $90,000.The business paid off $40,000 of its accounts payable.As of July 31, 2014, what best represents the accounting equation of thiscompany?A) $490,000 = $390,000+ $100,000B) $470,000 = $300,000+ $170,000C) None of the other alternatives are correct.D) $520,000 = $350,000+ $170,000E) $430,000 = $260,000 + $170,000

Let's break down the changes in the accounting equation step by step:Initial Balance (as of June 30,…

Answered: On June 30, 2014, the balance sheet of…

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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The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 32,000 shares of no-par common stock in exchange for $320,000 in cash. 2. Purchased equipment at a cost of $44,000. Cash of $11,000 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $98,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $130,000. The cost of the goods sold was $78,000. 5. Paid $4,250 in rent on the warehouse building for the month of March. 6. Paid $5,950 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $78,000 on account for the inventory purchased in transaction 3. 8. Collected $58,500 from customers on account. 9. Recorded depreciation expense of $1,100 for the month on the equipment. Required: Analyze each transaction and show the effect of each on the…
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 43,000 shares of no-par common stock in exchange for $430,000 in cash. 2. Purchased equipment at a cost of $53,000. Cash of $16,500 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $104,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $185,000. The cost of the goods sold was $83,000. 5. Paid $6,300 in rent on the warehouse building for the month of March. 6. Paid $7,300 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $83,000 on account for the inventory purchased in transaction 3. 8. Collected $68,000 from customers on account. 9. Recorded depreciation expense of $2,300 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening…
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 37,000 shares of no-par common stock in exchange for $370,000 in cash. 2. Purchased equipment at a cost of $47,000. Cash of $13,500 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $92,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $155,000. The cost of the goods sold was $77,000. 5. Paid $5,700 in rent on the warehouse building for the month of March. 6. Paid $6,700 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $77,000 on account for the inventory purchased in transaction 3. 8. Collected $62,000 from customers on account. 9. Recorded depreciation expense of $1,700 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening…
Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 17,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share. b. Purchased land in Wisconsin for $19,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $12,000 each; paid $2,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,200 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $4,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,300 cash for a vacant lot (land) in Canada for her personal use. 4. At the end of the next two years,…
Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 17,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share. b. Purchased land in Wisconsin for $19,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $12,000 each; paid $2,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,200 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $4,750 to Pablo Development Corporation, which signed a six-month note. 1. Stockholder Helen Bailey paid $29,300 cash for a vacant lot (land) in Canada for her personal use. 2. Prepare a trial balance at December…
Coleman Motors, Inc., was formed on January 1,2018. The following transactions occurred during 2018:On January 1, 2018, Coleman issued its common stock for $350,000. Early in January,Coleman made the following cash payments:a. $140,000 for equipmentb. $175,000 for inventory (five cars at $35,000 each)c. $19,000 for 2018 rent on a store buildingIn February, Coleman purchased six cars for inventory on account. The cost of this inventorywas $282,000 ($47,000 per car). Before year-end, the company paid off $197,400 of this debt.The company uses the first-in, first-out (FIFO) method to account for its inventory.During 2018, Coleman sold six autos for a total of $426,000. Before year-end, it had collected 90% of this amount.The business employs three people. The combined annual payroll is $90,000, of which Coleman owes $5,000 at year-end. At the end of the year, the company paid income taxes of $14,000.Late in 2018, Coleman declared and paid cash dividends of $29,000.For equipment, Coleman…
Additional information provided: • Equipment costing $52,000 was purchased for cash. • Equipment with a net asset value of $10,000 was sold for $14,000 • Depreciation expense of $12,000 was recorded during the year. • During 2014, the company repaid $40,000 of long-term notes payable. • During 2014, the company borrowed $34,000 on a new note payable Based on the info provided which of the following is the correct narrative and ending balance in the investing activities section of the company’s statement of cash flows: a. Net cash provided by investing activities $38,000 b. Net Cash used for investing activities ($38,000) c. Net cash provided by investing activities $66,000 d. Net Cash used for investing activities ($66,000)
On June 30, Year 3, Rundle Company's total current assets were $501,000 and its total current liabilities were $274,000. On July 1, Year 3, Rundle issued a short-term note to a bank for $39,400 cash. Required a. Compute Rundle's working capital before and after issuing the note. b. Compute Rundle's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Before the After the transaction transaction a. Working capital b. Current ratio MacBook Air 80 DII DD F2 F3 F4 F5 F6 F7 F8 F9 F10 23 2$ & * 3 4 6. 7 E R Y D F G H J K この * CO
The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. [These are the same transactions analyzed in Exercise 2–1, when we determined their effect on elements of the accounting equation.] 1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016. 7. Paid $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of…
Casello Mowing & Landscaping's year-end 2018 balance sheet lists current assets of $435,400, fixed assets of $550,600, current liabilities of $416,800, and long-term debt of $314,900. Calculate Casello's total stockholders' equity. Crane Company purchases a new delivery truck for $50,000. The sales taxes are $5,000. The logo of the company is painted on the side of the truck for $1,600. The truck's annual license is $130. The truck undergoes safety testing for $270. What does Crane record as the cost of the new truck? A) $56,870 B) $54,870 C) $55,000 D) $57,000 Which of the following account titles should the following expenditure be debited: Paid $7,000 of accrued taxes at the time the plant site was acquired? a. Land Improvements b. Land c. Prepaid Insurance d. License Expense e. Equipment
Tyrell Co. entered into the following transactions involving short-term liabilities. Purchased $35,000 of merchandise on credit from Locust, terms n/30. Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $0 in cash. Borrowed $66,000 cash from NBR Bank by signing a 120-day, 12%, $66,000 note payable. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 8%, $36,000 note payable. Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Paid the amount due on the note to Fargo Bank at the maturity date. Prepare journal entries for all the preceding transactions and events.
Vishanu

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