Listed below are ten business transactions for Puring Company during its first month of operations: a. Owner invested cash in the business amounting to P300 000 b. Purchased equipment for cash amounting to P50 000 c. Purchased inventories through credit amounting to P35 000 d. Purchased furniture amounting to P30 000. Made partial payment with cash (P10 000) and incurred an accounts payable for the balance (P20 000) e. Paid cash to the local government for business permit (P9 000) f. Made sales of P17 000 - P12 000 cash sales, P5 000 credit sales. g. The cost of the sales made in (f) amounted to P8 500. h. Paid the accounts payable in (d) i. Collected P2 500 out of the P5 000 credit sales in (f) j. Paid employee P12 000 Indicate the effects of the given transactions on each of the financial statement elements in the table shown below. The answer for transaction (a) is given as an example:

Listed below are ten business transactions for Puring Company during its first month of operations: a. Owner invested cash in the business amounting to P300 000 b. Purchased equipment for cash amounting to P50 000 c. Purchased inventories through credit amounting to P35 000 d. Purchased furniture amounting to P30 000. Made partial payment with cash (P10 000) and incurred an accounts payable for the balance (P20 000) e. Paid cash to the local government for business permit (P9 000) f. Made sales of P17 000 - P12 000 cash sales, P5 000 credit sales. g. The cost of the sales made in (f) amounted to P8 500. h. Paid the accounts payable in (d) i. Collected P2 500 out of the P5 000 credit sales in (f) j. Paid employee P12 000 Indicate the effects of the given transactions on each of the financial statement elements in the table shown below. The answer for transaction (a) is given as an example:

Name: Listed below are ten business transactions for Puring Company during
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Description: Listed below are ten business transactions for Puring Company during its first month of operations:a. Owner invested cash in the business amounting to P300 000b. Purchased equipment for cash amounting to P50 000c. Purchased inventories through credi

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received...

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Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
in the first month of operations for Mazaya Company, the total of the debit entries to the cash account amounted to R.O.8,000 ( R.O.4,000 investment by the owner and revenues of R.O.4,000). The total of the credit entries to the cash account amounted to R.O.5,000 (purchase of equipment R.O.2,000 and payment of expenses R.O.3,000). At the end of the month, the cash account has a, assume the cash account has a beginning balance of R.O.5,000 credit:
In the first month of operations for Sheffield Industries, the total of the debit entries to the cash account amounted to $ 35800 ($ 15600 investment by the owner and revenues of $ 20200). The total of the credit entries to the cash account amounted to $ 22000 (purchase of equipment $ 9000 and payment of expenses $ 13000). At the end of the month, the cash account has a(n) O $6400 debit balance. O $ 13800 credit balance. O $ 6400 credit balance. O $ 13800 debit balance.
Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $45,200 of common stock for cash. 2) The company paid cash to purchase $28,000 of Inventory. 3) The company sold inventory that cost $17,600 for $34,600 cash. 4) Operating expenses incurred and paid during the year, $15,600. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $38,400 of inventory. 2) The company sold inventory that cost $34,400 for $61,000 cash. 3) Operating expenses incurred and paid during the year, $19,600. Note: Sanchez uses the perpetual inventory system. What is the amount of retained earnings that will be shown on the balance sheet at December 31, Year 2? Multiple Choice $7,000
Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $13,100 of common stock for cash. 2) The company paid cash to purchase $7,900 of inventory. 3) The company sold inventory that cost $5,300 for $10,900 cash. 4) Operating expenses incurred and paid during the year, $4,800. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $11,400 of inventory. 2) The company sold inventory that cost $9,500 for $17,500 cash. 3) Operating expenses incurred and paid during the year, $5,800. Note: Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for Year 2? Multiple Choice $9,500 $2,200 $6,100 $8,000
During its first year of operations, a company entered into the following transactions: • Borrowed $5,150 from the bank by signing a promissory note. • Issued stock to owners for $11,500. • Purchased $1,150 of supplies on account. Paid $550 to suppliers as payment on account for the supplies purchased. What is the amount of total assets at the end of the year? Multiple Choice O O $17,250 $17,800 $5,750 $16,650
On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services amounting to P 40,000, 40% of which is on a cash basis. On January 10, the entity collected half of its receivables. During the month, the entity incurred P 40,000 expenses, P 18,000 of which have been paid. An equipment was also bought on account for P 10,000. A withdrawal of P 5,000 was also made. Compute the cash balance as of January 31.
York Company engaged in the following transactions for Year 1. The beginning cash balance was $86,000 and the ending cash balance was $59,100. 1. Sales on account were $548,000. The beginning receivables balance was $128,000 and the ending balance was $90,000. 2. Salaries expense for the period was $232,000. The beginning salaries payable balance was $16,000 and the ending balance was $8,000. 3. Other operating expenses for the period were $236,000. The beginning other operating expenses payable balance was $16,000 and the ending balance was $10,000. 4. Recorded $30,000 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $12,000 and $42,000, respectively. 5. The Equipment account had beginning and ending balances of $44,000 and $56,000, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $36,000 and $44,000, respectively. There were no payoffs of…
Harris, Inc. incurred the following transactions during the month of February. Record the appropriate ones in the cash payments journal. Include posting references. a. On February 3, the company purchased $650 worth of supplies on account. The supplies account number is 15. b. On February 5, Harris, Inc. made a payment on account to Sanders Industries in the amount of $1,215 (Check No. 2214). c. On February 14, Harris, Inc. bought a one-year insurance policy for $1,500. The prepaid insurance account number is 14 (Check No. 2215). d. On February 22, Harris, Inc. paid monthly rent of $2,000. The rent expense account number is 63 (Check No. 2216). e. On February 26, Harris, Inc. purchased equipment making a down payment of $3,000 (Check No. 2217) and agreeing to pay the $4,000 balance in 30 days. The equipment account number is 18. If an amount box does not require an entry, leave it blank. Page: OTHER ACCOUNT DEBITED CK. NO. POST. ACCOUNTS CASH REF. ACCOUNTS DR. PAYABLE DR. CR. DATE 1. 3
Gibson Company engaged in the following transactions for Year 1. The beginning cash balance was $28,100 and the ending cash balance was $74,991. 1. Sales on account were $283,100. The beginning receivables balance was $94,700 and the ending balance was $77,000. 2. Salaries expense for the period was $55,460. The beginning salaries payable balance was $3,815 and the ending balance was $2,180. 3. Other operating expenses for the period were $120,170. The beginning other operating expenses payable balance was $4,860 and the ending balance was $9,181. 4. Recorded $19,330 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $14,340 and $33,670, respectively. 5. The Equipment account had beginning and ending balances of $211,970 and $238,570, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $48,500 and $150,500, respectively. There were no payoffs of…
Sentry, Inc. was started on January 1, Year 1.Year 1 Transactions Acquired $20,000 cash by issuing common stock. Earned $62,000 of revenue on account. On October 1, Year 1, borrowed $12,000 cash from the local bank. Incurred $3,700 of operating expenses on account. Collected $5,000 cash from accounts receivable. Paid $2,900 cash to pay off a portion of the accounts payable. On December 31, Year 1, Sentry recognized accrued interest expense. The note had a one-year term and an 8 percent annual interest rate. Year 2 Transactions Collected cash for the remaining balance in accounts receivable. Paid cash to settle the remaining balance of accounts payable. On September 30, Year 2, recognized accrued interest expense. On September 30, Year 2, paid cash to settle the balance of the interest payable account. On September 30, Year 2, paid cash to settle the notes payable. Requireda. Record the events for Year 1 and Year 2 in an accounting equation. At the end of Year 1, total the columns…
Listed below are six transactions for TUV Company during its first month of operation s: 1. Owner invested cash in the business amounting to P300,000. 2. Purchased equipment for cash amounting to P 50,000.00 3. Purchased inventories through credit amounting to P35,000. 4. Purchased furniture amounting to P30,000. Made partial payment with cash, P 10,000 and incurred an accounts payable for the balance, P 20,000. 5. Paid the accounts payable in item # 4. 6. Bought supplies in cash for P12,000. Indicate the effects of the given transactions on each of the financial statement I elements in the table shown below. The answer for no. 1 is given as an example: Assets- LiabilitieS+ Equity 1.P 300,000 P 300,000 2. 3. 4. 5. 6. Reference Forendo. Joseito G. (20TO Fundaentale of Aeeountaney, Buenees an Management 1, Rex Bookston