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 salaries and wages for the first three events As of January 31, the band members hadn't yet been paid woges for the fourth event completed in January, but they would be paid in February at the same rate os for the first three events. As of January 31, RHC has not yet recorded the $108 of monitily depreciation on the equipment k. Also, RHC has not yet paid or recorded the $72 interest owed on the promissory note al January 31, / RHC is subject to a 25% tax rate on the company's income before tax Required: 1. Prepare journal entries to record the transactions and appicapiate adjustments of no entry is required for a transaction/event. select "No Journal Entry Required in the first account field.) < View transaction list Journal entry worksheet Note: Enter dibits before credits. 4 Transaction 5 Record the entry for the investment of $10,700 cash, paid by the leader of the band. 6 78... 12 General Journal Debit Credit
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 salaries and wages for the first three events As of January 31, the band members hadn't yet been paid woges for the fourth event completed in January, but they would be paid in February at the same rate os for the first three events. As of January 31, RHC has not yet recorded the $108 of monitily depreciation on the equipment k. Also, RHC has not yet paid or recorded the $72 interest owed on the promissory note al January 31, / RHC is subject to a 25% tax rate on the company's income before tax Required: 1. Prepare journal entries to record the transactions and appicapiate adjustments of no entry is required for a transaction/event. select "No Journal Entry Required in the first account field.) < View transaction list Journal entry worksheet Note: Enter dibits before credits. 4 Transaction 5 Record the entry for the investment of $10,700 cash, paid by the leader of the band. 6 78... 12 General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 salaries and wages for the first three events
As of January 31, the band members hadn't yet been paid woges for the fourth event completed in January, but they
would be paid in February at the same rate os for the first three events.
As of January 31, RHC has not yet recorded the $108 of monitily depreciation on the equipment
k. Also, RHC has not yet paid or recorded the $72 interest owed on the promissory note al January 31,
/ RHC is subject to a 25% tax rate on the company's income before tax
Required:
1. Prepare journal entries to record the transactions and appicapiate adjustments of no entry is required for a transaction/event.
select "No Journal Entry Required in the first account field.)
<
View transaction list
Journal entry worksheet
Note: Exterdibits before credits.
Transaction
4
Record the entry for the investment of $10,700 cash, paid by the leader of the
band.
Record entry
5
General Journal
6 7 8 ... 12
Clear entry
Debit
Credit
View general journal
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