1.
Concept Introduction:
Double-entry accounting: According to the double-entry system, the
The general
2.
Concept Introduction:
Double-entry accounting: According to the double-entry system, the
Posting of each of the entries to T-accounts and ending balance of each of the given T-accounts.
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- Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: 1. Received cash in exchange for common stock, 18,000. 2. Paid advertising expense, 4,850. 3. Purchased supplies on account, 2,100. 4. Billed customers for delivery services on account, 14,700. 5. Received cash from customers on account, 8,200. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by 18,000; Common Stock increases by 18,000.arrow_forwardFalcon Incorporated has the following transactions with Wildcat Corporation. Transactions Falcon’s Related Account 1. Falcon purchases common stock of Wildcat. 2. Falcon borrows from Wildcat by signing a note. 3. Falcon provides services to Wildcat. 4. Falcon pays interest to Wildcat on borrowing. Investment Notes payable Service revenue Interest expense Required:1. For each transaction, indicate whether Falcon would report the related account in the balance sheet or income statement.2. For accounts in the balance sheet, indicate whether it would be classified as an asset, liability, or stockholders’ equity. For accounts in the income statement, indicate whether it would be classified as a revenue or an expense.3. Indicate whether each transaction is classified as operating, investing, or financing activity.arrow_forwardOn October 17, Nickle Company purchased a building and a plot of land for $582,300. The building was valued at $302,796 while the land carried a value of $279,504. Nickle paid $56,300 down in cash and signed a note payable for the balance. Required: Provide the journal entry for this transaction. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSNickle CompanyGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Office Equipment 17 Building 18 Truck LIABILITIES 21 Notes Payable 22 Accounts Payable 23 Unearned Revenue EQUITY 31 Marlene Nickle, Capital 32 Marlene Nickle, Drawing REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Maintenance Expense 59 Miscellaneous Expensearrow_forward
- Consider the following transactions for Julianne Corporation: a. Issue common stock for $15,000. b. Purchase equipment for $11,400 cash. c. Pay employees' salaries of $3,800. d. Provide services to customers for $6,800 cash. 1. Post the beginning Cash balance of $4,000 and then post the above transactions. 2. Calculate the ending balance of the Cash account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Post these transactions to the Cash T-account. Assume the balance of Cash before these transac Beginning Balance Debit Cash Creditarrow_forwardPosting Transactions to T-accountsDuring the year, the Decker Company experienced the following accounting transactions: 1. Issued common stock in the amount of $150,0002. Paid a $30,000 cash dividend3. Borrowed $25,000 from a bank4. Made a principal payment of $3,500 on an outstanding bank loan5. Made an interest payment of $1,200 on an outstanding bank loan Prepare journal entries and post your transaction analysis to the appropriate T-accounts. When posting the journal entries to the T-accounts, enter them in order. For expenses, and dividends - select "Retained earnings" as the account. General Journal Ref. Description Debit Credit 1. Answer Answer Answer Answer Answer Answer 2. Answer Answer Answer Answer Answer Answer 3. Answer Answer Answer Answer Answer Answer 4. Answer Answer Answer Answer Answer Answer 5. Answer Answer Answer Answer Answer Answer Cash Answer Answer Answer Answer Answer Answer…arrow_forwardThe following are the balance sheet and income statement data of PROSPERITY INC. Balance Sheet Accounts (December 31) Cash Marketable Securities Accounts Receivable-net................ Inventories Land...... Building - net Machinery and Equipment-net............ Other Assets Prepaid Expenses Notes Payable, Trade Accounts Payable, Trade........... Expenses Payable Long Term Notes Due 2025. 15% Preferred Stock, P100 par............. Common Stock, P10 par... Retained Earnings ***********... 20 x 2 Income Statement Accounts Sales... Sales Returns and allowances Inventory, December 31, 20 x 2 Inventory, December 31, 20 x 1... Purchases Selling Expenses..... Additional Information: Dividends paid on preferred stock Dividends paid on common stock Market price per share on common stock P 20 X 2 Working Capital Current Ratio Acid Test Ratio Receivable Turn-over Age of Receivables (use 365 days) Inventory Turn-over Working Capital Turn-over 150,000 850,000 500,000 750,000 500,000 550,000…arrow_forward
- Post these transactions from each General Journal into the General Ledger accounts. When posting transactions to the general ledger, use the transaction letters a, b, c, d, or e as the description for each entry. Also, the dates must be entered in the format dd/mmm (ie, 15/Jan).arrow_forwardThe accounts and balances that follow in attached image are from Buy-It Company’s general ledger. Complete a Statement of Cash Flow, Income Statement, Balance Sheet, and Statement of Owner's Equityarrow_forwardThe following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $41,385 Accounts receivable (net) 27,338 Inventory 36,309 Property, plant, and equipment 206,732 Total assets $311,764 Liabilities and Stockholders' Equity Current liabilities $56,225 Long-term liabilities 90,205 Stockholders' equity—Common 165,334 Total liabilities and stockholders' equity $311,764 Income Statement Net Sales $82,724 Cost of goods sold (33,090) Gross margin 49,634 Operating expenses (29,417) Interest expense (4,136) Net income $16,081 Number of shares of common stock outstanding 6,061 Market price of common stock $25 Total dividends paid $9,700 Cash provided by operations $41,385 Using the data provided for…arrow_forward
- Analyzing Transactions Using the Financial Statement Effects Template Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template. 1. Shareholders contribute $15,000 cash to the business in exchange for common stock. 2. Employees earn $750 in wages that have not been paid at period-end. 3. Inventory of $4,500 is purchased on credit. 4. The inventory purchased in transaction 3 is sold for $6,750 on credit. 5. The company collected the $6,750 owed to it per transaction 4. 6. Equipment is purchased for $7,500 cash. 7. Depreciation of $1,500 is recorded on the equipment from transaction 6. 8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,200 of supplies are still available. No supplies were purchased during this period. 9. The company paid $15,000 cash toward the principal on a note payable; also, $750 cash is paid to cover this note's interest…arrow_forwardRecord each of these transactions in Journal entries and prepare the Ledger for Cash & Cash Equivalents, Accounts Receivable and Accounts Payable: 1st Sunny Barcelona started the business by depositing $50,000 received from the sale of capital stock in the company bank account. 22nd Purchased a building for $36,000, paying $6,000 in cash and issuing a note payable for the remaining $30,000. 25th Purchased tools and equipment on account, $13,800. 27th Sold some of the tools at a price equal to their cost, $1,800, collectible within 45 days. 2nd Received $600 in partial collection of the account receivable from the sale of tools. 7th Paid $6,800 in partial payment of an account payable. 11th Received $2,200 of sales revenue in cash. 2oth Purchased radio advertising from RAC105 to be aired in March. The cost was $470, payable within 30 days. 22nd Purchased office equipment for $15,000 cash. 26th Performed repair services and billed clients $2,000. The entire amount will…arrow_forwardUse the following information from XYZ Company's balance sheet to answer the next six questions: Assets a. b. c. d. a. b. 30. C. d. Cash........ Marketable Securities Accounts Receivable Inventory........ Property and Equipment. Accumulated Depreciation. Total Assets a. b. c. d. Liabilities and Stockholders' Equity Accounts Payable. Notes Payable (current). Mortgage Payable (long-term). Bonds Payable (long-term). Common Stock, $50 Par.. The average number of common stock shares outstanding during the year was 840 shares. Net earnings for the year were $6,300. 25. XYZ's current ratio is 6.0 to 1. 5.5 to 1. 26. XYZ's quick (acid-test) ratio is 4.0 to 1. 4.5 to 1. 3.5 to 1. 3.0 to 1. Paid-in Capital in Excess of Par......... Retained Earnings............ Total Liabilities, and Stockholders' Equity 4.0 to 1. 4.5 to 1. ***** 27. XYZ's earnings per share is $7.50 per share. $7.00 per share. $0.13 per share. $6,300 per share. 28. XYZ's return on assets is a. 6.9% b. 7.9% C. 14.6% d. 23.4% 29.…arrow_forward
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