Compute for total assets if the owner's initial contribution for opening a business is P150,000. Three months later, he made an additional investment of P200,000. During the 2nd quarter of the fiscal year, the business spent P100,000 to buy equipment for the business. Within the normal operations of the business, total revenues amounted to P500,000. The business did not incur any present obligations.

Compute for total assets if the owner's initial contribution for opening a business is P150,000. Three months later, he made an additional investment of P200,000. During the 2nd quarter of the fiscal year, the business spent P100,000 to buy equipment for the business. Within the normal operations of the business, total revenues amounted to P500,000. The business did not incur any present obligations.

Name: Compute for total assets if the owner's initial contribution for openi
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Compute for total assets if the owner's initial contribution for opening a business is P150,000. Three months later, he made an additional investment of P200,000. During the 2nd quarter of the fiscal year, the business spent P100,000 to buy equipment

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

See similar textbooks

Similar questions

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 major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?
Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
Fill in the blanks: Total revenues earned by the company during the year is P900,000 while the expenses incurred were: Salaries Expense, P75,000; Utilities Expense, P90,000; ad Rent Expense, P120,000. During the year, the owner made an additional investment of P100,000 but made a cash withdrawal of P220,000. The NET INCREASE in the owner's equity account during the year is
Ross Company is a C corporation providing property management services. Ross has used the cash method since inception because its gross receipts did not exceed $26,000,000. This year its average annual gross receipts for the prior three years crossed the $26,000,000 mark, requiring Ross to change from the cash method to the accrual method. At the end of its prior year, Ross had accounts receivable of $850,000 and accounts payable of $540,000. Compute and explain the adjustment to taxable income that Ross must make due to the change in accounting method. When must Ross include this adjustment in its income?
The following transactions occurred for A New Company Inc. at the end of the year: a. Purchased a new building by paying $55,000 cash and signing a note payable for $220,000. b. Sold furniture that had an original cost of $13,000 for a gain of $800. The beginning accumulated depreciation was $36,000 and the ending accumulated depreciation was $30,000. Depreciation expense for the year was $3,000. c. Purchased new furniture for $11,000 cash. No depreciation has occurred on this furniture. d. Sold old computer equipment for $1,500 cash. e. Dividends of $19,000 were paid in cash Work through your calculations for each transaction and prepare the investing section of the statement of cash flows. Cash Flows from Investing Activities: Net Cash Used by Investing Activities ✓
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it. Paid $550 for ordinary repair. Purchased a patent for $44,000 cash. Paid $180,000 cash for addition to an existing building. Paid $50,000 for monthly salaries. Paid $260 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $25,000. A. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? $fill in the blank 1 B. What amount did Jada report on the income statement for expenses for the year? $fill in the blank 2
Jada Company had the following transactions during the year: Purchased a machine for $430,000 using a long-term note to finance it. Paid $520 for ordinary repair. Purchased a patent for $42,000 cash. Paid $200,000 cash for addition to an existing building. Paid $51,000 for monthly salaries. Paid $280 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $30,000. A. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? $fill in the blank 1 B. What amount did Jada report on the income statement for expenses for the year? $fill in the blank 2 Feedback
Jada Company had the below transactions during the year. If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for 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
The owner of ABC Company invested cash to the business amounting P500,000 and office furniture and equipment which has a fair market value of P210,000. During the year, the owner made an additional investment of P150,000 to increase the working capital of the firm. On December 1, the owner issued a company check for P250,000 to settle his personal loan from Union Bank. Revenues in 2021 totaled P305,000 and expenses amounted to P420,200. How much was owner's capital as of December 31, 2021?
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?
Consider each of the transactions below. All of the expenditures were made in cash. 1. The Edison Company spent $12,000 during the year for experimental purposes in connection with the development of a new product. 2. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $7,500. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $6,000 down and signed a noninterest- bearing note requiring the payment of $18,000 in nine months. The cash price for this equipment was $23,000. 4. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $28,000. 5. The Mayer Company, plaintiff, paid $12,000 in legal fees in November, in connection with a successful infringement suit on its patent. 6. The Johnson Company traded its old machine with an original cost of $7,400 and a book value of $3,000 plus cash of $8,000 for a new one that had a fair value of $10,000. The exchange has commercial substance. Required:…
Jada Company had the following transactions during the year: Purchased a machine for $440,000 using a long-term note to finance it. Paid $460 for ordinary repair. Purchased a patent for $48,000 cash. Paid $160,000 cash for addition to an existing building. Paid $52,000 for monthly salaries. Paid $240 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $20,000. A) If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? B) What amount did Jada report on the income statement for expenses for the year?