Question one Fantastic Corporation is a corporation that owns and operates a public accounting practice. The business transactions during September, 2020 while the new venture was being organized are listed below: Sept. 1 The Corporation issued 20,000 shares of capital stock to Elizabeth Carver in exchange for her investment of Birr 50,000 cash which she had saved over a period of years. Sept. 10 purchased a small office building located on a large lot for a total price of Birr 182,000, of which Birr 106,000 was applicable to the land and Birr76, 000 to the building. A cash payment of Birr 36,500 was made and a note payable was issued for the balance of the purchase price. Sept. 15 purchased a microcomputer system from Computer Stores Inc., for Birr 1,680 cash. Sept. 19 Purchased office furniture, filing cabinets and a typewriter from Davidson Office Supply Company at a cost of Birr 3,960. A cash down payment of Birr 720 was made, the balance to be paid in three equal installments due September 28, October 28, and November 28. The purchase was on open account and did not require signing of a promissory note. Sept. 26 A Birr 140 monitor in the microcomputer system purchased on September 15 stopped working. The monitor was returned to Computer Stores Inc., which promised to refund the Birr140 within five days. Sept. 28 Paid Davidson Office Supply Company Birr 1,080 cash as the first installment due on the accounts payable for office equipment Sept. 30 Received Birr 140 cash form computer Stores Inc., in full settlement of the account receivable created on September 26. REQUIRED: A. Prepare journal entries to record the above transactions in the firm's General Journal. B. Select the appropriate account, post the above transactions to accounts in the ledger and show there balance by using T-account.
Question one Fantastic Corporation is a corporation that owns and operates a public accounting practice. The business transactions during September, 2020 while the new venture was being organized are listed below: Sept. 1 The Corporation issued 20,000 shares of capital stock to Elizabeth Carver in exchange for her investment of Birr 50,000 cash which she had saved over a period of years. Sept. 10 purchased a small office building located on a large lot for a total price of Birr 182,000, of which Birr 106,000 was applicable to the land and Birr76, 000 to the building. A cash payment of Birr 36,500 was made and a note payable was issued for the balance of the purchase price. Sept. 15 purchased a microcomputer system from Computer Stores Inc., for Birr 1,680 cash. Sept. 19 Purchased office furniture, filing cabinets and a typewriter from Davidson Office Supply Company at a cost of Birr 3,960. A cash down payment of Birr 720 was made, the balance to be paid in three equal installments due September 28, October 28, and November 28. The purchase was on open account and did not require signing of a promissory note. Sept. 26 A Birr 140 monitor in the microcomputer system purchased on September 15 stopped working. The monitor was returned to Computer Stores Inc., which promised to refund the Birr140 within five days. Sept. 28 Paid Davidson Office Supply Company Birr 1,080 cash as the first installment due on the accounts payable for office equipment Sept. 30 Received Birr 140 cash form computer Stores Inc., in full settlement of the account receivable created on September 26. REQUIRED: A. Prepare journal entries to record the above transactions in the firm's General Journal. B. Select the appropriate account, post the above transactions to accounts in the ledger and show there balance by using T-account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question one
Fantastic Corporation is a corporation that owns and operates a public
accounting practice. The business transactions during September, 2020 while
the new venture was being organized are listed below:
Sept. 1 The Corporation issued 20,000 shares of capital stock to Elizabeth
Carver in exchange for her investment of Birr 50,000 cash which she
had saved over a period of years.
Sept. 10 purchased a small office building located on a large lot for a total price
of Birr 182,000, of which Birr 106,000 was applicable to the land and
Birr76, 000 to the building. A cash payment of Birr 36,500 was made
and a note payable was issued for the balance of the purchase price.
Sept. 15 purchased a microcomputer system from Computer Stores Inc., for Birr
1,680 cash.
Sept. 19 Purchased office furniture, filing cabinets and a typewriter from
Davidson Office Supply Company at a cost of Birr 3,960. A cash down
payment of Birr 720 was made, the balance to be paid in three equal
installments due September 28, October 28, and November 28. The
purchase was on open account and did not require signing of a
promissory note.
Sept. 26 A Birr 140 monitor in the microcomputer system purchased on
September 15 stopped working. The monitor was returned to Computer
Stores Inc., which promised to refund the Birr140 within five days.
Sept. 28 Paid Davidson Office Supply Company Birr 1,080 cash as the first
installment due on the accounts payable for office equipment
Sept. 30 Received Birr 140 cash form computer Stores Inc., in full settlement of
the account receivable created on September 26.
REQUIRED:
A. Prepare journal entries to record the above transactions in the firm's
General Journal.
B. Select the appropriate account, post the above transactions to accounts in
the ledger and show there balance by using T-account.
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