You have decided to go into the business of selling Beamers. You decide to operate thebusiness as a corporation, Chris's Beamer Biz, Inc. On January 1, 20X1 the companyissued you 100 shares of stock for $20,000 of cash. The company borrowed $10,000 fromyour Uncle Mike. For the $10,000 borrowed from your uncle, the company signed a noteagreeing to pay back that amount on December 31, 20X4 and will pay interest at 10% atthe end of each year. On January 1, 20X1, the company bought 11 Beamers for $2,500each. During the year the company sold 8 Beamers for $8,000 each. They also paid asecurity deposit of $2,000, advertising expense of $6,000 and 12 months' rent of $18,000.In addition to the cash invested on January 1st, on August 1" you also invest a piece ofland that you own into the business that is worth $40,000 in exchange for 200 more sharesof stock. The first year's interest to Uncle Mike of $1,000 is paid on December 31 of20X1. The tax rate is 30% of income before taxes and the company paid 50% of thesetaxes this year and will pay the rest in 20X2. So how did the company do?Prepare Journal Entries, T-Accounts, and Financial Statements

A journal is a concise record of all transactions a business conducts,;a concise record of all…

Answered: You have decided to go into the…

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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Mary began a business, and after collecting $30,000 from an equity investor and borrowing $15,000 from a bank, she purchased piece of land for $40,000. During the year, she leased the land to Karl and received $12,000 in cash, paying $14,000 cash for expenses. She paid a $1,000 dividend to the equity investor at year.-end Prepare an income statement, a statement of shareholders’ equity, a balance sheet, and a statement of cash flows for the period. Evaluate Mary’s decision to pay the $1,000 dividend.
The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $3.990 from a local bank on a note due in six months. b. Received $4,680 cash from investors and issued common stock to them. C. Purchased $1,100 in equipment, paying $250 cash and promising the rest on a note due in one year. d. Paid $350 cash for supplies. e. Bought and received $750 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.
Required information [The following information applies to the questions displayed below] J. Kamas and G. Charrier have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corporation called Traveling Gourmet, Incorporated. The following transactions occurred in March a. Received $80,000 cash from each of the two shareholders to form the corporation, in addition to $2,000 in accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair value of $13,000, and $1,200 in supplies. Gave the two owners each 500 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $360,000, making a $72,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c. Borrowed $50,000 from the local bank on a 10 percent, one-year note. d. Purchased food and paper supplies costing 10,200…
Please help me with the blank amounts I don't know what they are and how to find them
J. Kamas and G. Charrier have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corporation called Traveling Gourmet, Incorporated. The following transactions occurred in March: Received $96,000 cash from each of the two shareholders to form the corporation, in addition to $3,600 in accounts receivable, $8,500 in equipment, a van (equipment) appraised at a fair value of $16,200, and $2,000 in supplies. Gave the two owners each 820 shares of common stock with a par value of $1 per share. Purchased a vacant store for sale in a good location for $520,000, making a $104,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. Borrowed $66,000 from the local bank on a 10 percent, one-year note. Purchased food and paper supplies costing $13,400 in March; paid cash. Catered four parties in March for $5,800; $1,920 was billed and the rest was…
The Gap has opened a new store in Ottawa, investing $100,000 in cash in return for common shares of the new company that will operate the store. Susan Harper is the store’s manager. During the first week of operations, Harper signed a note payable to purchase land for $40,000 and a building for $130,000. The store also paid $50,000 for store fixtures and $40,000 for inventory to use in the business. All these were paid for in cash. The Gap’s head office requires store managers to provide a weekly report that summarizes and discusses the details of the store’s financial position and how it has changed since the previous report. Susan has asked for your help with this request. Prepare the report for head office (assume all events above took place in the first week of operations).
Please I need help no plagiarism please
Andi has decided that she is going to start a new business. Here are some transactions that have occurred prior to April 30 Received $96,000 cash when issuing 9,600 new common shares. Purchased land by paying $7,500 cash and signing a note payable for $11,500 due in three years. Hired a new aesthetician for a salary of $2,600 a month, starting next month. NGS purchased a company car (equipment) for $34,000 cash (list price of $37,000) to assist in running errands for the business. Bought and received $950 in supplies for the spa on account. Nicole sold 100 of her own personal shares to Raea Gooding for $300. Assuming that the beginning balances in each of the accounts are zero, complete T-accounts to summarize the transactions in (a)–(f).
The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,600. b. The firm borrowed $5,400 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,700 were purchased for cash. The original list price of the equipment was $1,900, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,400 was paid for the first month's rent. e. Inventory of $15,200 was purchased; $9,000 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $3,300 was sold for $7,000 cash. g. A newspaper ad costing $150 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,100 was purchased; cash of $1,250 was paid,…
I need help setting these up on a general ledger and I'm not understanding how. Would someone be able to help me do this?
a. Received $60,000 cash from the investors who organized Down, Incorporated b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $9,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (c), paid for half of it, and put the rest on account. 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero. Current Assets Cash Total Current Assets Equipment Total Assets Assets DOWN.INCORPORATED Balance Sheet At May 31 $ 70,000 70,000 25,000 Liabilities Current Liabilities Common Stock Notes Payable (long-term) $ 95,000 $ $ 60,000 20,000 80,000 80,000 0 80,000
The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,390 from a local bank on a note due in six months. b. Received $5,080 cash from investors and issued common stock to them. c. Purchased $1,900 in equipment, paying $650 cash and promising the rest on a note due in one year. d. Paid $750 cash for supplies. e. Bought and received $1,150 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginni Debit Beginning Balance Ending Balance Debit F Cash Equipment Credit Credit Debit Beginning Balance Ending Balance Debit Supplies Accounts Payable

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