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The company received $50,000 from investors in cash and issued common stock. The company billed customers for services rendered, $50,000. The company purchased supplies on account for $2,500. The company paid for one-year insurance policy for $24,000. The company purchased equipment for $50,000 and signed a note payable. The company received a deposit for $18,000 for 12 months service paid in advance. The company paid $3,500 of accounts payable. The company received $30,000 from customers previously billed. The company paid $20,000 in expenses. The company paid a dividend of $2,500.   Information for Adjusting Entries   At the end of the year, the company had $2,000 of supplies on hand. The prepaid insurance was a one-year policy purchased on October 1. The equipment was expected to last ten years with no salvage value. The $18,000 deposit was for on-year service and was received on July 1. The note payable was signed on October 1 with an interest rate of 3.00%. The company has a weekly payroll of $10,000 for a five-day week. The year-end was on a Wednesday.

The company received $50,000 from investors in cash and issued common stock. The company billed customers for services rendered, $50,000. The company purchased supplies on account for $2,500. The company paid for one-year insurance policy for $24,000. The company purchased equipment for $50,000 and signed a note payable. The company received a deposit for $18,000 for 12 months service paid in advance. The company paid $3,500 of accounts payable. The company received $30,000 from customers previously billed. The company paid $20,000 in expenses. The company paid a dividend of $2,500.   Information for Adjusting Entries   At the end of the year, the company had $2,000 of supplies on hand. The prepaid insurance was a one-year policy purchased on October 1. The equipment was expected to last ten years with no salvage value. The $18,000 deposit was for on-year service and was received on July 1. The note payable was signed on October 1 with an interest rate of 3.00%. The company has a weekly payroll of $10,000 for a five-day week. The year-end was on a Wednesday.

FINANCIAL ACCOUNTING
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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Question
  1. The company received $50,000 from investors in cash and issued common stock.
  2. The company billed customers for services rendered, $50,000.
  3. The company purchased supplies on account for $2,500.
  4. The company paid for one-year insurance policy for $24,000.
  5. The company purchased equipment for $50,000 and signed a note payable.
  6. The company received a deposit for $18,000 for 12 months service paid in advance.
  7. The company paid $3,500 of accounts payable.
  8. The company received $30,000 from customers previously billed.
  9. The company paid $20,000 in expenses.
  10. The company paid a dividend of $2,500.

 

Information for Adjusting Entries

 

  1. At the end of the year, the company had $2,000 of supplies on hand.
  2. The prepaid insurance was a one-year policy purchased on October 1.
  3. The equipment was expected to last ten years with no salvage value.
  4. The $18,000 deposit was for on-year service and was received on July 1.
  5. The note payable was signed on October 1 with an interest rate of 3.00%.
  6. The company has a weekly payroll of $10,000 for a five-day week. The year-end was on a Wednesday.
  7. Use Excel for the Answer  Given example 
Cash Receivable Accounts Supplies Insurance Equipment Depreciation Revenue Payable Payable Payable 5,500 Pre-Adjustment Balances 25,000 15,000 500 AJE 1 AJE 2 AJE 3 AJE 4 AJE 5 AJE 6 Adjusted Balances 25,000 15,000 500 5,500 Revenue Expenses Sheet1 +)
Transcribed Image Text:Cash Receivable Accounts Supplies Insurance Equipment Depreciation Revenue Payable Payable Payable 5,500 Pre-Adjustment Balances 25,000 15,000 500 AJE 1 AJE 2 AJE 3 AJE 4 AJE 5 AJE 6 Adjusted Balances 25,000 15,000 500 5,500 Revenue Expenses Sheet1 +)
Accounts for Doubtful Prepaid Accum Unearned Accounts Salaries Interest Cash Receivable Accounts Supplies Insurance Equipment Depreciation Revenue Payable Payable Payable 5,500 Beginning Balance 25,000 15,000 500 1 2 3 4 5 6 7 8 10 11 Pre-Adjustment Balances 25,000 15,000 500 5,500
Transcribed Image Text:Accounts for Doubtful Prepaid Accum Unearned Accounts Salaries Interest Cash Receivable Accounts Supplies Insurance Equipment Depreciation Revenue Payable Payable Payable 5,500 Beginning Balance 25,000 15,000 500 1 2 3 4 5 6 7 8 10 11 Pre-Adjustment Balances 25,000 15,000 500 5,500
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