On October 1, 2021, TIM, Inc. started as a mobile application development company. A summary of transactions through December 31, 2021 is presented below. 1. Stockholders invested $50,000 in cash in Bank Boston in the name of the business. 2. New computer equipment is purchased for $6,000 in cash 3. Computer accessories are purchased from ABC Computer Store. The amount of accessories is $2,000 and ABC Computer Store agrees to receive the amount of the bill in the following days of October 4. The company receives $3,000 cash from its customer for mobile application development service it has performed. 5. The company gives an advertisement on the internet and receives a bill for $ 500 from the advertisement agency. The agency agrees to receive the amount of the bill in the following days of October 6. The company performs $4,000 of mobile application development service for its client. The client pays $2,000 in cash and states that the rest of this amount will be paid later. 7. The salaries of employees of $3,000 and office rent of $1,000 is paid in cash. 8. The company pays its $1,000 ABC Computer Store bill (Transaction 3) and $500 advertisement agency bill (Transaction 5). 9. The customer pays the $2,000 cash to TIM. It is the unpaid amount of the bill for mobile application development service performed by the company (Transaction 6). 10. Dividends of $500 paid to existing shareholders. 11. The company issues 10,000 shares of stock at $20 par- value.
On October 1, 2021, TIM, Inc. started as a mobile application development company. A summary of transactions through December 31, 2021 is presented below. 1. Stockholders invested $50,000 in cash in Bank Boston in the name of the business. 2. New computer equipment is purchased for $6,000 in cash 3. Computer accessories are purchased from ABC Computer Store. The amount of accessories is $2,000 and ABC Computer Store agrees to receive the amount of the bill in the following days of October 4. The company receives $3,000 cash from its customer for mobile application development service it has performed. 5. The company gives an advertisement on the internet and receives a bill for $ 500 from the advertisement agency. The agency agrees to receive the amount of the bill in the following days of October 6. The company performs $4,000 of mobile application development service for its client. The client pays $2,000 in cash and states that the rest of this amount will be paid later. 7. The salaries of employees of $3,000 and office rent of $1,000 is paid in cash. 8. The company pays its $1,000 ABC Computer Store bill (Transaction 3) and $500 advertisement agency bill (Transaction 5). 9. The customer pays the $2,000 cash to TIM. It is the unpaid amount of the bill for mobile application development service performed by the company (Transaction 6). 10. Dividends of $500 paid to existing shareholders. 11. The company issues 10,000 shares of stock at $20 par- value.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...
Related questions
Question
Required:
1. Identify each financial transaction by using accountingequation and make journal entries of financialtransactions
2. Transfer the journal entries to the Ledger
3. Prepare the Trail Balance of the company
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 8 images
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT