Tobias Eaden started a sole proprietorship named Sky High Ads. A customer’s message can be displayed on an airplane banner across the city. Sky High Ads had the following business activities during the month of November 2023: Nov 1 Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads. 3 Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance. 7 Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business. 9 Purchased $5,000 of supplies on credit. 13 Provided services to a customer for a marriage proposal of $16,000 on credit. 17 Paid $3,000 wages to a pilot. 21 Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15. 23 Paid for half of the account payable from the November 9 transaction. 27 Purchased $20,000 of new aircraft equipment by paying $15,000 cash and trading in old aircraft equipment with a recorded cost of $5,000. 30 Withdrew $3,200 cash from the business for personal use. Required: Record the effects of the transactions by entering debits and credits directly in the T-accounts. Identify the date next to each posting.
Tobias Eaden started a sole proprietorship named Sky High Ads. A customer’s message can be displayed on an airplane banner across the city. Sky High Ads had the following business activities during the month of November 2023: Nov 1 Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads. 3 Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance. 7 Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business. 9 Purchased $5,000 of supplies on credit. 13 Provided services to a customer for a marriage proposal of $16,000 on credit. 17 Paid $3,000 wages to a pilot. 21 Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15. 23 Paid for half of the account payable from the November 9 transaction. 27 Purchased $20,000 of new aircraft equipment by paying $15,000 cash and trading in old aircraft equipment with a recorded cost of $5,000. 30 Withdrew $3,200 cash from the business for personal use. Required: Record the effects of the transactions by entering debits and credits directly in the T-accounts. Identify the date next to each posting.
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 8DQ
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Question
Tobias Eaden started a sole proprietorship named Sky High Ads. A customer’s message can be displayed on an airplane banner across the city. Sky High Ads had the following business activities during the month of November 2023:
| Nov | 1 | Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads. |
| 3 | Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance. | |
| 7 | Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business. | |
| 9 | Purchased $5,000 of supplies on credit. | |
| 13 | Provided services to a customer for a marriage proposal of $16,000 on credit. | |
| 17 | Paid $3,000 wages to a pilot. | |
| 21 | Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15. | |
| 23 | Paid for half of the account payable from the November 9 transaction. | |
| 27 | Purchased $20,000 of new aircraft equipment by paying $15,000 cash and trading in old aircraft equipment with a recorded cost of $5,000. | |
| 30 | Withdrew $3,200 cash from the business for personal use. |
Required:
Record the effects of the transactions by entering debits and credits directly in the T-accounts. Identify the date next to each posting.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT