FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Alex Vera organized Succulent Epress at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions: a. Terry Mason invested $30,000 in Succulent Express in exchange for common stock. b. Paid $5,400 on February 1 for an insurance premium on a one-year policy. c. Purchased supplies on account, $1,800. d. Received fees of $57,000 during February. e. Paid expenses as follows: wages, $21,600; rent, $6,400; utilities, $2,800; and miscellaneous, $3,200. f. Paid dividends of $8,000. Part 1: Record the preceding transactions using the integrated financial statement framework. After each transaction, you should enter a balance for each item. Part 2: Record the adjustments at the end of February to record the insurance expense and supplies expense. There was $300 of supplies on hand as of February 28. Identify the adjustment…arrow_forwardthe company have cash of $12,351, Accounts Receivable of $18,431, Accounts Payable of$4,124, and G. Crane, Capital of $26,658. During the month of March, the following transactions occurred.1.Purchased equipment for $24,234 from Digital Equipment. Paid $5,634 cash and signed a note payable for the balance.2.Received $12,469 from customers for contracts billed in February.3.Paid $3,138 for March rent of office space.4.Paid $2,315 of the amounts owing to suppliers at the beginning of March.5.Provided software services to Kwon Construction Company for $7,147 cash.6.Paid BC Hydro $ 1,064 for energy used in March.7.G. Crane withdrew $4,853 cash from the business.B.Paid Digital Equipment $1.953 on account of the note payable issued for the equipment purchased in transaction 1. Of this,$93 was for interest expense.9 Hired an erployee to start working in April.10. Incurred advertising expense on account for March, $1,705.Prepare a tabular analysis of the above transactions. The first row…arrow_forwardAlex Vera organized Succulent Express at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions: Terry Mason invested $32,750 in Succulent Express in exchange for common stock. Paid $4,200 on February 1 for an insurance premium on a one-year policy. Purchased supplies on account, $1,560. Received fees of $48,270 during February. Paid expenses as follows: wages, $22,200; rent, $3,700; utilities, $1,850; and miscellaneous, $2,035. Paid dividends of $8,850. There was $858 of supplies on hand as of February 28. Assume that adjusting entries for usage of supplies and expiration of prepaid insurance were recorded on February 28, 20Y4. Based on the information above, determine the net cash flow from operating activities as of February 28, 20Y4.arrow_forward
- Alex Vera organized Succulent Epress at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions: a. Terry Mason invested $30,000 in Succulent Express in exchange for common stock. b. Paid $5,400 on February 1 for an insurance premium on a one-year policy. c. Purchased supplies on account, $1,800. d. Received fees of $57,000 during February. e. Paid expenses as follows: wages, $21,600; rent, $6,400; utilities, $2,800; and miscellaneous, $3,200. f. Paid dividends of $8,000. Part 3: Prepare all financial statements for February, including income statement, statement of stockholders' equity, balance sheet, and statement of cash flows. Part 3: Financial Statements Succulent Express Income Statement For the Month Ended February 28, 20Y4 Fees earned Operating expenses: Wages expense Rent…arrow_forwardBarbara Jones opened Barb’s Book Business on February 1. You have been hired to maintain the company’s financial records. The following transactions occurred in February, the first month of operations. a. Received shareholders’ cash contributions on February 1 totaling $19,000 to form the corporation; issued 1,000 shares of common stock. b. Paid $3,060 cash on February 2 for three months’ rent for office space. TIP: For convenience, simply record the full amount of the payment as an asset (Prepaid Rent). At the end of the month, this account will be adjusted to its proper balance. c. Purchased and received supplies on February 3 for $695 cash. d. Signed a promissory note on February 4, payable in two years; deposited $12,900 in the company’s bank account. e. On February 5, paid cash to buy equipment for $5,000 and land for $7,900. f. Placed an advertisement in the local paper on February 6 for $500 cash. g. Recorded sales on February 7 totaling $2,150; $1,250 was in…arrow_forwardJanet Enterprises incorporated on May 3, current year. The company engaged in the following transactions during its first month of operations. May 3: Issued capital stock in exchange for $950,000 cash. May 4: Paid May office rent expense of $1,800. May 5: Purchased office supplies for $600 cash. The supplies will last for several months. May 15: Purchased office equipment for $12,400 on account. The entire amount is due June 15. May 18: Purchased a company car for $45,000. Paid $15,000 cash and issued a note payable for the remaining amount owed. May 20: Billed clients $120,000 on account. May 26: Declared an $8,000 dividend. The entire amount will be distributed to shareholders on June 26. May 29: Paid May utilities of $500. May 30: Received $90,000 from clients billed on May 20. May 31: Recorded and paid salary expense of $32,000. A partial list of the account titles used by the company includes the following. Cash Dividends Payable…arrow_forward
- Walker Company has just started the operations in July. The company is owned by Franklin Walker.The following transactions have taken place in the first month of operation. Dates Transactions July 1 Received cash investment of $ 650,000 from Franklin Walker.July 1 Purchased two computers for $50,000 for cash. July 4 Received $10,000 service income in cash from services provided. July 5Purchased supplies of $1,000 on credit. The payment will be made on 20 July. July 6Paid advertising expense of $1,500. July 12 Provided $6,500 worth of services on account.July 15 Received cash of $6,000 in advance from ABC. The company will provide the service for the next three months.July 20Paid telephone bill of $220. July 20Paid supplies purchased on 5 July.July 31Paid monthly salary to employee of $ 8,000. Required:Journalize the transactions above in the format Below. Date Account titles and explanation Referencearrow_forwardThe following accounting events apply to Waddell Company’s Year 2 fiscal year: Jan. 1 Acquired $40,000 cash from the issue of common stock. Feb. 1 Paid $5,100 cash in advance for a one-year lease for office space. Mar. 1 Paid a $1,900 cash dividend to the stockholders. April 1 Purchased additional land that cost $34,000 cash. May 1 Made a cash payment on accounts payable of $17,000. July 1 Received $7,600 cash in advance as a retainer for services to be performed monthly over the coming year. Sept. 1 Sold land for $22,000 cash that had originally cost $22,000. Oct. 1 Purchased $1,150 of supplies on account. Dec. 31 Earned $57,000 of service revenue on account during the year. 31 Received cash collections from accounts receivable amounting to $54,000. 31 Incurred other operating expenses on account during the year that amounted to $12,000. 31 Recognized accrued salaries expense of $4,200. 31 Had $150 of supplies on hand at…arrow_forwardDuring its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. Began business by making a deposit in a company bank account of $60,000, in exchange for 6,000 shares of $10 par value common stock. July 1 July 3 Paid the current month's rent, $3,500 July 5 Paid the premium on a 1-year insurance policy, $4,200 July 7 Purchased supplies on account from Little Company, $1,000. July 10 Paid employee salaries, $3,500 July 14 Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1. Note: Use accounts payable for the balance due. July 15 Received cash for preparing tax returns for the first half of July, $8,000 July 19 Made payment on account to Lake Company, $500. July 31 Received cash for preparing tax returns for the last half of July, $9,000 July 31 Declared and paid cash…arrow_forward
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