RR Claro, a public relation man, opened his business on May 1, 2020. Below are the transactions completed by the RC Communication Company during the month of May. May 1 RR Claro invested cash, P80,000 to start the business. 7 Paid taxes and licenses to the City Treasurer, P1,500. 8 Purchased office furniture from Acme Furniture, P15,000 paying P5,000 down, balance in 10 days. 15 Received P25,000 for services rendered from various clients. 19 Billed National Enterprises for services rendered, P28,000. 31 Withdrew 30,000 for personal use
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- S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3 He purchases shop fittings for sh. 2,500 and pays by cheque. July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6 He buys stock for Sh. 1,500 and pays through bank. July 8 He sells goods for cash Sh.1,000. July 10 Buys goods on credit from XY & Co. for Sh. 1,200 July 12 Sells goods to A. Smith for Sh. 900 on credit July 13 Pays wages Sh. 120 by cash July 14 A. Smith returns goods worth Sh. 200 July 15 Pays to AB & Co. Sh. 3,000 by cheque July 17 Goods returned to XY & Co. amounting to Sh. 350 July 21 Receives from A. Smith a cheque for Sh. 700 July 25 Sells goods for cash Sh. 300. July 30…Hye Jin started his accounting consultancy business on January 1, 2021. During the first month of the business, the following transactions occurred: Hye Jin purchased a laptop on January 1, 2021 for P50,000. 30% of the purchase price was paid in cash, the balance was subject to a 2-year note at 3% interest. Vera expects that the laptop will be used in the business for 3 years. On January 5, Vera received P12,000 for services to be rendered on the succeeding 4 months. On January 3, Vera purchased a 1-year insurance policy for P24,000. Office supplies purchased cost P15,000. A count of supplies at month-end indicates P12,000 supplies are on hand. On January 31, Hye Jin received a bill from the lessor for January rent amounting to P16,000, and utilities amounting to P4,000. Services performed to clients but were not yet billed amounted to P7,850. REQUIRED (show supporting calculations):1. Prepare the adjusting entries on January 31 if the company makes use of the…On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91, 316 cash. The new company, Sheffield Sales and Service, has the following transactions during January. 1. Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. 2. Purchases 42 personal computers at a cost of $ 1,664 each, 8 graphics computers at a cost of $2, 664 each, and 27 printers at a cost of $464 each, paying cash upon delivery. 3. Sales, repair, and office employees earn $13,916 in salaries and wages during January, of which $4, 316 was still payable at the end of January. 4. Sells 32 personal computers at $2,714 each, 6 graphics computers for $3,764 each, and 17 printers for $664 each; $76,316 is received in cash in January, and $44, 404 is sold on a deferred payment basis. 5. Other operating expenses of $9, 716 are incurred and paid for during January; $3,316 of incurred expenses are payable at January 31. (a) Using…
- A partial list of transactions from `r@ktas` Co. during 2020 follows.January 1- Tom and John each donated $ 20.000 in exchange for common stock to start the business.March 3- r@ktas co., paid $ 7.200 cash for two-year insurance policy that was effective immediately.March 15-The Company purchased $20.000 of supplies on account.April 5- The Company purchased equipment for $20.000 cash. The equipment should last for five yearswith no residual value. r@ktas company will take a full year of depreciation in 2020.May 1-r@ktas co., purchased a year’s worth of advertising in a local newspaper for $ 3.000 cash.November 1- The Company obtained a nine-month loan for $ 75.000 at 5% from Do Not Trust Bank, withinterest and principal payable on June 2021.December 31- The Company paid $ 15.000 of accounts payable owed from transaction 3.December 31- Cash revenues totaled $20.000.NoteThe company had $3.000 of the supplies still on hand at the end of the year.Requirements:1- Give the journal entries for…Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $52,675 cash to start the business and received 4,300 shares. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $49,150, amounts due from customers from sales of books, $28,850, property and equipment, $54,750, amounts owed to publishers for books purchased, $8,900; one-year note payable to a local bank for $4,200. No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2020: Total assets Assets READER DIRECT Balance Sheet At December 31, 2020 $ Total liabilities Liabilities Shareholders' equity Total shareholders equity 0 Total llabilities & shareholders' equity $ 0 0Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all of the transactions, what is the amount of total assets? A)25,200 B)5,200 C)24,200 D)20,200
- On April 1, 2021, Betty Trout created a new self-storage company called Betty Storage Company. The following eventsoccurred during the company's first month:April1Betty invested $75,000 cash, land and buildings worth $300,000 and $225,000 respectively.2Rented equipment by paying $4,800 for the first month.5Purchased $5,200 of office supplies for cash.10Paid $10,800 for the premium on a one-year insurance policy effective today.14Paid an employee $2,000 for two weeks' salary.24Collected $22,500 of storage revenue from customers27Collected $2,400 on a rental agreement for storage from May 1, 2021 to April 30, 202228Paid an employee $2,000 for two weeks' salary.29Paid the month's $600 phone bill30Repaired a leak in the roof of the buidling for $2,000 on account31Betty withdrew $3,500 cash from the company for personal use.The following is the company's chart of accounts:101Cash301Betty Trout, Capital106Accounts Receivable302Betty Trout, Drawings124Office Supplies401Storage…Ann opened an Office Cleaning Service company on January 1, 2020. During 2020 she had the following transactions.(1) She started the business with investing $30,000 of her own money (business was organized as corporation)(2) She borrowed $40,000 from bank by issuing a 5-year note.(3) She purchased $15,000 of furniture and equipment- paid $5,000 cash and signed a note for the rest.(4) She purchased a truck for business use at $20,000 in cash.(5) During the year, provided $85,000 services to customers of which $71,000 was collected, the rest was not yet collected as of Dec. 31st.(6) During the year, she incurred $58,000 of salaries expense of which $2000 was still not paid as of Dec. 31st.(7) During the year, she paid $3000 interest on the note to the Bank(8) During the year, she took $3,000 as dividend.(9) During the year, she collected $150 interest from bank on company account(10)During the year, purchased $2000 of supplies in cash.(11)During the last week of the year, she…On January 1, 2022, Lloyd and Joan Valdez organized Tech Associates as a corporation; each contributed $75,000 cash to start the business and received 4,000 shares of common stock. The store completed its first year of operations on December 31, 2022. financial items for the year were determined: On that date, the following Cash on hand and in the bank $73,350 Amounts due from customers for the sales of merchandise $39,000 Office equipment $72,000 Amounts owed to suppliers for merchandise inventory $12,000 One-year note payable to a local bank $3,000 Retained Earnings at Dec 31, 2022 $19230 No dividends were declared or paid to shareholders during the year. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income – Dividends = Ending Retained Earnings] to solve for net income.)
- B. Mr. Abdullah formed Al-Noor Enterprises on February 2021. During the month, the following financial transactions occurred: Review and find the mistake of the following transactions which is recorded in general journal and rewrite them. 2021, February 10 Paid the month's rent OR 700 16 Withdrew OR 10,000 for personal use. 23 Collected OR 9,000 from Bahwan Company. 28 Sold goods for cash - OMR 15,000 Al-Noor Enterprises for January Date Particulars Ref. Debit Credit 2020 Feb. 11 Rent Expense 700 Cash 700 16 Abdullah, Withdrawal 10,000 Expense 10,000 10,000 Cash Accounts Payable 23 10,000 30 Sales 15,000 Cash 15,000Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.During June, the following transactions were completed by Dean.1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APRwith interest being payable at the end of every month. No principle payments are due until August 1, 2021.1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.5-Jun Purchased cleaning supplies for $1,500 on account.7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.8-Jun Paid $100 for gasoline for the van.12-Jun Paid $200 for maintenance on the van.15-Jun Incurred wages expense of $2,000.16-Jun…Alice Angle is an architect who set up her own on 1 March 2021. She supplied the following information about transactions for the first month ended 31 March 2021: 2021 Transaction March 1 eg. Alice deposited capital R70 000 into the business bank account. 1 Paid R5 000 as rent for March 2021. 2. Alice contributed equipment valued at R75 000 that she was using at home. The equipment was fully paid for personally by Alice. Additional equipment was purchased for R35 000 and paid through Alice's personal bank account. 6 The business obtained a loan of R150 000 from Kind Bank and deposited into the _business bank account. The loan is repayable in 3 equal annual instalments. The first instalment is payable on 31 March 2023. Interest is payable monthly at 7% per year beginning on 1 April 2021. 10 Purchased a vehicle for business purposes from Fast Cars Ltd for R220 000. Paid a deposit equal to 20% of the purchases price by making an electronic finds payment (EFT). The balance will be paid in…