The following events occurred for Favata Company: a. Received $10,000 cash from owners and issued stock to them. b. Borrowed $7,000 cash from a bank and signed a note due later this year. c. Bought and received $800 of equipment on account. d. Purchased land for $12,000; paid $1,000 in cash and signed a long-term note for $11,000. e. Purchased $3,000 of equipment; paid $1,000 in cash and charged the rest on account.
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General entry please...
![The following events occurred for Favata Company:
a. Received $10,000 cash from owners and issued stock to them.
b. Borrowed $7,000 cash from a bank and signed a note due later this year.
c. Bought and received $800 of equipment on account.
d. Purchased land for $12,000; paid $1,000 in cash and signed a long-term note for $11,000.
e. Purchased $3,000 of equipment; paid $1,000 in cash and charged the rest on account.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9065d5e0-e604-42ae-a5e0-4ab04a2a361f%2F8710c5a5-1aec-4dc9-accd-7d4ea71fed31%2F939cqin_processed.jpeg&w=3840&q=75)
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- Presented below are accounts of Cutie Company Additional: During the year, the owner made an additional investment of 20,000 and withdrawals of 50,000. Cutie company beginning capital is 617,600 and its net income for the year is 75,000. Instructions: Prepare the Statement of Financial Position in account form and report form and determine the amount of cash. Prepare the supporting notes.For each of the transactions in M2 - 9 (including the sample), write the journal entry using the format shown in this chapter (omit explanations). M2 - 9 (Sample) Borrowed $3,940 from a local bank on a note due in six months. Received $4, 630 cash from investors and issued common stock to them. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year. Paid $300 cash for supplies. Bought and received $700 of supplies on account. LO 2 - 3create a income statement for: The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $50,000 from the issue of common stock. Purchased equipment inventory of $380,000 on account. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. Paid the sales tax to the state agency on $400,000 of the sales. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2. Paid $6,200 for warranty repairs during the year. Paid operating expenses of $78,000 for the year. Paid $250,000 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6.
- During the year, Penso Ltd received $50,000 from its customers, $5 000 for the sale of a motor vehicle and $20,000 for the issue of shares. It paid $27,000 to suppliers and employees, $3,000 for income tax and $50,000 for new machinery. In addition, it paid out $12,000 as loan repayments. Its cash balance at the commencement of the year was $19,000. What were the cash flows from financing activities? a. $8 000 b. $20,000 c. ($12,000) d. ($28,000) Which method can result in annual depreciation expense going up and down from period to period? a. Reducing balance b. Units of production c. Straight line d. Both Straight line and Reducing Balance During year ended 30 June 2019, Rugger Ltd had net sales of $256 000. Inventory at 1 July 2018 was $30 000, and at 30 June 2019 it was $23 000. Purchases were $115 000. What was the gross profit for year ended 30 June 2019? a. $12,000 b. $134,000 c. $141,000 d. $99,000 The Global Reporting Initiative sets out: a. guidelines on how to reduce carbon…Bailey Delivery Company, Incorporated, was organized in 2021 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 16,000 shares of stock (par value of $1.00 per share) with a market value of $8 per share. b. Purchased land in Wisconsin for $20,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $15,000 each; paid $6,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $2,400 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $5,000 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,500 cash for a vacant lot (land) in Canada for her personal use. 3. Prepare a classified balance…Mark Jacobs established Jacobs Services in August by contributing $30,000 cash from his personal savings to the business in exchange for 100% of the common stock. Jacobs Services had the following transactions in September. September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance. September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance. September 3 Paid September rent of $3,000. September 5 Purchased $4,000 of supplies on credit. September 8Performed serviced and received $1,000 cash. September 10 Billed clients $8,500 for services performed. September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November. September 18 Collected $8,500 cash from clients toward their accounts billed on September 10. September 24 Paid $4,000 for the supplies purchased on September 5. September 30 Paid $100 cash for newspaper advertising to be aired in October.…
- Mark Jacobs established Jacobs Services in August by contributing $30,000 cash from his personal savings to the business in exchange for 100% of the common stock. Jacobs Services had the following transactions in September. September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance. September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance. September 3 Paid September rent of $3,000. September 5 Purchased $4,000 of supplies on credit. September 8Performed serviced and received $1,000 cash. September 10 Billed clients $8,500 for services performed. September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November. September 18 Collected $8,500 cash from clients toward their accounts billed on September 10. September 24 Paid $4,000 for the supplies purchased on September 5. September 30 Paid $100 cash for newspaper advertising to be aired in October.…6. Cameron Corporation purchased land for $233,000. Later in the year, the company sold a different piece of land with a book value of $144,000 for $157,000.7.Sales reported on the income statement were $672,000. The accounts receivable balance increased $56,000 over the year. Determine the amount of cash received from customers.$_______Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
- The following transactions occurred in Nanon Company: a. Nanon, the owner, invested P50,000,000 and obtained P100,000,000 loan from a bank. b. The company purchased a manufacturing plant for business amounting to P125,000,000 for cash. c. It also purchased goods for sale on cash amounting to P250,000. d. There were sales of finished goods on credit amounting to P500,000. e. The company purchased goods for sale on credit amounting to P250,000. f. The company returned goods to the supplier amounting to P50,000 which was evidence by a credit memo from the supplier. g. Various accruals were recorded at the end of the period amounting to P30,000. From the above transactions, what is the total amount to be recorded in the Purchases Journal? P250,000 P450,000 P500,000 P125,500,000 From the above transactions, what is the total amount to be recorded in the Cash Disbursements Journal? P125,250,000 P125,500,000 P50,250,000 P50,500,000 From the above transactions, what is the total amount to be…Consider the following transactions for Huskies Insurance Company: 1. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year. 2. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year. 3. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.Required: For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.Louisiana Products Company had the following positive cash flows during the current year: received cash from customers of $750,000; received bank loans of $35,000; and received cash from the sale of common stock of $145,000. During the same year, cash was paid to purchase inventory for $345,000, to employees for wages of $230,000, and for the purchase of plant assets of $217,000. Calculate the amount of cash provided by or used for operating activities by the direct method. Not cash operating activities