6McGrawRequired information[The following information applies to the questions displayed below]GdAssume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de-motivational posters and office products. Down, Incorporated, encountered the following events during its first month ofoperations.ea. Received $30,000 cash from the investors who organized Down, Incorporatedb. Borrowed $15,000 cash and signed a note due in two years.Required:1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.)c. Ordered equipment costing $12,000.d. Purchased $6,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance.e. Received the equipment ordered in (d). paid for half of it, and put the rest on account.BeginningabEndingCashAssets030,00030,000EquipmentD-18,000-18,000Ⓒ--..-Answer is not complete.AccountsPayable06.000 €6,000LiabilitiesShort-termNotesPayable02,000 €2,000Long-termNotesPayable015,00015,000.+++.StockholdersEquityCommonStock030,00030,000

Accounting equation is described as the sum of liabilities and stockholder’s equity equals the…

Required information (The following information applies to the questions displayed below] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de- motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $30,000 cash from the investors who organized Down, Incorporated b. Borrowed $15,000 cash and signed a note due in two years. c. Ordered equipment costing $12,000. d. Purchased $6,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (d. paid for half of it, and put the rest on account. Required:

Required information (The following information applies to the questions displayed below] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de- motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $30,000 cash from the investors who organized Down, Incorporated b. Borrowed $15,000 cash and signed a note due in two years. c. Ordered equipment costing $12,000. d. Purchased $6,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (d. paid for half of it, and put the rest on account. Required:

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 transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,600. b. The firm borrowed $5,400 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,700 were purchased for cash. The original list price of the equipment was $1,900, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,400 was paid for the first month's rent. e. Inventory of $15,200 was purchased; $9,000 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $3,300 was sold for $7,000 cash. g. A newspaper ad costing $150 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,100 was purchased; cash of $1,250 was paid,…
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…
Case Study You have applied for a public relations (PR) position with a RM 10.2 million savings and loan association, a conservative financial institution that has been in existence for over 50 years. The organization has never employed a PR person before. Now that its assets have risen above 10 million, however, the president of the institution feels it is time to hire someone to ‘do the PR’. During an interview, the president admits he is not sure what PR is, but he is fairly sure he wants the person he hires to plan promotions and stage events that will attract new customers, write stories that will get free space and time in the local media and start an employee publication. The president also states that he is open to suggestions about the position and asks you to explain how you would establish a professional, effective PR program if you were hired.
Scenario: Joe Babbitt, a former executive of T-Mart, just started a term as mayor of Saulk Center. For the past several days, he has been looking for a way to keep his campaign promise to increase services without raising taxes or service charges. While lunching at the country club with the treasurer of T-Mart, the subject of a recent sale and leaseback of one of T-Mart’s stores came up. Following a common practice in retailing, T-Mart had erected a building and sold it to an investor. It then signed a long-term lease on the building. “Bingo! That’s it,” thought Mayor Babbitt. “We can sell several of the city’s buildings—as well as police cars, fire engines, and other vehicles—to investors and lease them back. That will give us the revenues we desperately need. Now I can concentrate on fighting crime.” Question: Do you agree with Mayor Babbitt?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The following are the transactions relating to the formation of Gray Mowing Services Inc. and its first month of operations. a. The firm was organized and the initial stockholders invested cash of $720. b. The company borrowed $1,080 from a relative of one of the initial stockholders; a short-term note was signed. c. Two zero-turn lawn mowers costing $576 each and a professional trimmer costing $156 were purchased for cash. The original list price of each mower was $732, but a discount was received because the seller was having a sale. d. Gasoline, oil, and several packages of trash bags were purchased for cash of $108. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $204, will be paid in 30 days. f. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $846; $558 was collected in cash, and the balance will be received within 30 days. g. Employees were paid $504 for…
[The following information applies to the questions displayed below.] While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Year 1 Assets Purchase Date Basis Computers (5-year) October 30, Year 1 $ 16,400 Office equipment (7-year) October 30, Year 1 10,000 Furniture (7-year) October 30, Year 1 5,800 Start-up costs October 30, Year 1 19,520 In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow information systems students preparing to graduate. The customer list cost $12,520, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation.…
[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. RHC was formed with an investment of $11,900 cash, paid in by the leader of the band on January 3 in exchange for common stock. On January 4, RHC purchased music equipment by paying $2,300 cash and signing an $9,600 promissory note payable in three years. On January 5, RHC booked the band for six concert events, at a price of $2,800 each, but no cash was collected yet. Of the six events, four were completed between January 10 and 20. 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 $2,800 fee for one of them. On January 27, RHC paid $3,440 cash for the band’s travel-related costs. On January 28, RHC paid its band members a total of $2,490 cash for salaries and wages for the first…
Bob Jacobs wishes to expand his business and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been good but not great. The expansion costs have brought the current ratio down to 1.20 in the middle of December. Bob, as the owner of the business, is considering what might happen if he reports a current ratio of 1.4 to the bank. One possible action for Bob is to record in December $10,000 of revenue that the business will earn in January of next year. He thinks this is doable because the contract for this job has been signed. Journalize the revenue transaction and indicate how recording this revenue in December would affect the current ratio. Discuss whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation. and give the reasons underlying your conclusion. Propose an ethical action for Bob Jacobs.
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Cintu is a large marketer and distributor of food service products serving restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. a. Borrowed $101,000 from a bank, signing a short-term note payable. b. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash. c. Purchased equipment for $146,000 in cash. d. Incurred and paid employee wages of $2,450. e. Received $430 on account from a customer. f. Incurred and paid $4,850 cash for travel costs during the year. g. Paid $9,100 cash on accounts payable. h. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account. Required: 1. For each of the above transactions, prepare accrual basis journal entries. 2. Calculate the company's preliminary net income.