During 2025, its first year of operations as a delivery service, Pharoah Corp. entered into the following transactions.1.Issued shares of common stock to investors in exchange for $137,000 in cash.2.Borrowed $55,000 by issuing bonds.3.Purchased delivery trucks for $63,000 cash.4.Received $18,000 from customers for services performed.5. Purchased supplies for $6,600 on account.6.Paid rent of $5,900.7.Performed services on account for $10,700.8.Paid salaries of $26,700.9.Paid a dividend of $11,500 to stockholders.Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for chaStockholders' Equity in the far-right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equplace a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity itemwas reduced.)(2)(3)རྒྱ་སེ་གྱི(1)AssetsAccountsCashReceivableSuppliesEquipment

Detailed explanation: Transaction 1: Issued shares of common stock to investors in exchange for…

Answered: During 2025, its first year of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me
Jamaica Corporation carried out the following transactions involving note payable. During the fiscal year ended December 31, 2020. Aug 6 Borrowed $ 15,200 from Tony Stark, issuing to him a 45 da, 14% note payable. Sept. 16 Purchased office equipment from Ikea Company. The invoice amount was $18,800 and Ikea Company agreed to accept as full payment a 3-month, 15% note for the invoice amount. Sept. 20 Paid Tony Stark note plus accrued interest. Nov.1 Borrowed $ 2,35,000 from Nation Commercial Bank at an interest rate of 12% per annum; signed a 90-days note payable for $ 2,42,256, which included a $7,056 interest charge in the face amount. Dec.1 Purchased merchandise in the amount of $13,000 from Stephens & Co. Gave in settlement a 60-day note nearing interest at 15% (Perpetual inventory system is deployed). Dec. 16 The $18,800 note payable to Ikea Company matured today. Paid the interest accrued and issued new 30-days, 12% note to replace the maturing note.…
Gravel Corporation borrowed $250,000 from a bank on January 1, 2019, by signing a10%, six-month note. The journal entry made by Gravel on January 1, 2019, will debita. Interest Expense for $25,000 and credit Interest Payable for $25,000.b. Cash for $225,000 and credit Notes Payable for $225,000.c. Interest Expense for $25,000 and credit Cash for $25,000.d. Cash for $250,000 and credit Notes Payable for $250,000.
The following transactions apply to Walnut Enterprises for 2018, its first year of operations: Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, 2018. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Paid $62,000 cash for other operating expenses during the year. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until 2019. Recognized the accrued interest at December 31, 2018. The following transactions apply to Walnut Enterprises for 2019: Paid the balance of the sales tax due for 2018. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Repaid the principal of the note and applicable interest on April 1, 2019. Paid $102,500 of other operating expenses…
On November 1, Lee Corporation borrowed 10,000 by signing a six-month 5% bank loan payable. On this date, hiw should the corporation have recorded this transaction in its accounting records?
The transaction below pertains to Boyer Coe Company, whose fiscal year ends December 31. On November 1, 2019 Coe borrowed $25,000 at 6 percent for 6 months. The entry to record the November 1 borrowing transaction would include a: A. Credit to notes payable for $750 B. Credit to notes payable for $24,250 C. Debit to cash for $24,250 D. Debit to cash for $25,000
Question. Jamaica Corporation carried out the following transactions involving note payable. During the fiscal year ended December 31, 2020. Aug 6 Borrowed $ 15,200 from Tony Stark, issuing to him a 45 da, 14% note payable. Sept. 16 Purchased office equipment from Ikea Company. The invoice amount was $18,800 and Ikea Company agreed to accept as full payment a 3-month, 15% note for the invoice amount. Sept. 20 Paid Tony Stark note plus accrued interest. Nov.1 Borrowed $ 2,35,000 from Nation Commercial Bank at an interest rate of 12% per annum; signed a 90-days note payable for $ 2,42,256, which included a $7,056 interest charge in the face amount. Dec.1 Purchased merchandise in the amount of $13,000 from Stephens & Co. Gave in settlement a 60-day note nearing interest at 15% (Perpetual inventory system is deployed). Dec. 16 The $18,800 note payable to Ikea Company matured today. Paid the interest accrued and issued new 30-days, 12% note to replace the maturing…
On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $478,700. The interest rate charged by the bank was 6.75%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a - Journal entry a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Use the following information for the next 4 items: You were assigned to audit the borrowings of your client, Benedict Company, as of and for the year ended December 31, 2022. Upon examining their records, and inquiry with management, you have found out that the company has the following notes outstanding as of December 31, 2022: A 10%-note issued to Supreme Inc. in exchange for a second-hand delivery vehicle on June 30, 2022. The face amount of the note is P800,000 and is due on June 30, 2027. Interest is payable semi-annually every June 30 and December 31. On the date of issuance, the delivery vehicle does not have a reliable fair market value, and the annual prevailing market rate of interest at that time for notes with similar characteristics is 12%. A three-year 12% note issued to Ace Company with principal amount of P1,500,000 dated November 30, 2021. The principal is payable in three installments of P500,000 plus interest on outstanding balance every November 30, beginning on…
Prepare journal entries for the following transactions that took place during the year, 2021: a. Borrowed $50,000 cash on July 1, 2020, signing a two-year, 10% note payable. b. Purchased Land for $54,000 cash on July 1, 2020. c. Earned $50,000 in revenue, including $23,000 in cash and the rest on credit. d. Collected accounts receivable, $15,000. e. Paid wages to employees, $22,000. f. Purchased supplies of $4,500 on account. g. Paid accounts payable, $4,500. h. Recorded depreciation of $2,300 for the year. i. Recorded estimated bad debt expense of $500. j. Determined that only $1,500 of the supplies purchased in f. were on hand at the end of the year.
On January 1, 2022, the ledger of Whispering Winds Corp. contained these liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue During January, the following selected transactions occurred. Jan. 1 Borrowed $22,800 in cash from Apex Bank on a 4-month, 5%, $22,800 note. Interest will be paid at maturity. Sold merchandise for cash totaling $6,254, which includes 6% sales taxes. Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2021, $8,820. Sold 500 units of a new product on credit at $48 per unit, plus 6% sales tax. 5 12 14 $56,000 8,820 16,100 20 During January, the company's employees earned wages of $68,000. Withholdings related to these wages were $5,202 for FICA, $4,850 for federal income tax, and $1,450 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages…
On January 1, 2024, a business borrowed $12,000 on a five-year, 8% note payable. At December 31, 2024, the business should record OA. interest payable of $960. OB. note receivable of $12,000. OC. cash payment of $12,000. OD. nothing. (The note is already on the books.)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS