Answered: record this transaction

Business

Accounting

record this transaction

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 company takes out a $1,000,000 loan from the bank. Provide the journal entry that would be necessary to record the transaction.
Required information [The following information applies to the questions displayed below) RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month a RHC was formed with an investment of $10,700 cash, paid in by the leader of the band on January 3 in exchange for common stock b On January 4, RHC purchased music equipment by paying $1,100 cash and signing an $9,600 promissory note payable in three years. c. On January 5, RHC booked the band for six concert events, at a price of $2,600 each, but no cash was collected yet d Of the six events, four were completed between January 10 and 20 e On January 22, cash was collected for three of the four events The other two bookings were for February concerts, but on January 24, RHC collected half of the $2.600 fee for one of them. g. On January 27, RHC paid $2,240 cash for the band's travel-related costs h. On January 28, RHC paid its band members a total of $2,130 cash for…
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