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Waterway Corporation began operations on January 2. Its y 1 On February 2, purchased a $19.200, one-year insurance policy for cash The policy came into effect on that date 2. On March 15, Waterway sold $78.120 in annual subscriptions for cash, with service to begin on April 1 3 Purchased a delivery drone for $124,000 on July 1 Waterway paid $32,000 in cash and signed a $92,000 bank loan for the balance. The drone is estimated to have a us of four years and the company uses straight-line depreciation. The bank loan has an interest rate of 5% 4 On November 1, the company purchased six months of digital advertising at a cost of $99.600 Waterway paid $49,800 cash and the balance on account. The advertising to commence on December 1 and run at a constant level for six comecutive months dis December 31, and it adjusts its accounts annually Selected transactions for the current year followe 5. On December 1, Waterway received $11.200 from the sale of gift cards which could be redeemed for servi of the cards had been redeemed (a) Your answer is partially correct No. For each of the above situations, prepare the journal entry for the initial transaction (Credit account titles are automatically indented when amount is entered. De not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem) Date Account Titles and Explanation sat a future date. On December 31, it was determined tham Debit Credit

Waterway Corporation began operations on January 2. Its y 1 On February 2, purchased a $19.200, one-year insurance policy for cash The policy came into effect on that date 2. On March 15, Waterway sold $78.120 in annual subscriptions for cash, with service to begin on April 1 3 Purchased a delivery drone for $124,000 on July 1 Waterway paid $32,000 in cash and signed a $92,000 bank loan for the balance. The drone is estimated to have a us of four years and the company uses straight-line depreciation. The bank loan has an interest rate of 5% 4 On November 1, the company purchased six months of digital advertising at a cost of $99.600 Waterway paid $49,800 cash and the balance on account. The advertising to commence on December 1 and run at a constant level for six comecutive months dis December 31, and it adjusts its accounts annually Selected transactions for the current year followe 5. On December 1, Waterway received $11.200 from the sale of gift cards which could be redeemed for servi of the cards had been redeemed (a) Your answer is partially correct No. For each of the above situations, prepare the journal entry for the initial transaction (Credit account titles are automatically indented when amount is entered. De not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem) Date Account Titles and Explanation sat a future date. On December 31, it was determined tham Debit Credit

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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Waterway Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually Selected transactions for the current year follow 1 On February 2. purchased a $19.200, one-year insurance policy for cash. The policy came into effect on that date. 2. On March 15. Waterway sold $78,120 in annual subscriptions for cash, with service to begin on April 1. 3. Purchased a delivery drone for $124.000 on July 1. Waterway paid $32,000 in cash and signed a $92000 bank loan for the balance. The drone is estimated to have a usefu of four years and the company uses straight-line depreciation. The bank loan has an interest rate of 5% 4. On November 1, the company purchased six months of digital advertising at a cost of $99,600. Waterway paid $49,800 cash and the balance on account. The advertising w to commence on December 1 and run at a constant level for six consecutive months. 5. On December 1, Waterway received $11.200 from the sale of gift cards which could be redeemed for services at a future date. On December 31, it was determined that 60 of the cards had been redeemed (a) For each of the above situations, prepare the journal entry for the initial transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem) No. Date Account Titles and Explanation 1 2 Your answer is partially correct 3 Feb-2 Mar 15 Pre Textbook and Media Subscription Revenue Debit 1200 74126 Credit 1:200
Transcribed Image Text:Waterway Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually Selected transactions for the current year follow 1 On February 2. purchased a $19.200, one-year insurance policy for cash. The policy came into effect on that date. 2. On March 15. Waterway sold $78,120 in annual subscriptions for cash, with service to begin on April 1. 3. Purchased a delivery drone for $124.000 on July 1. Waterway paid $32,000 in cash and signed a $92000 bank loan for the balance. The drone is estimated to have a usefu of four years and the company uses straight-line depreciation. The bank loan has an interest rate of 5% 4. On November 1, the company purchased six months of digital advertising at a cost of $99,600. Waterway paid $49,800 cash and the balance on account. The advertising w to commence on December 1 and run at a constant level for six consecutive months. 5. On December 1, Waterway received $11.200 from the sale of gift cards which could be redeemed for services at a future date. On December 31, it was determined that 60 of the cards had been redeemed (a) For each of the above situations, prepare the journal entry for the initial transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem) No. Date Account Titles and Explanation 1 2 Your answer is partially correct 3 Feb-2 Mar 15 Pre Textbook and Media Subscription Revenue Debit 1200 74126 Credit 1:200
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