1.
Introduction:
To calculate: The total assets of L company after they have purchased solar panels.
2.
Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.
To compute: The amount of equity after A was fine.
3.
Introduction: Journal entry is a technique of booking and recording financial transactions on any company. Ledger is used to record all economic transactions of the account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.
To compute: The amount of equity of L company after investment.
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Financial Accounting: Information for Decisions
- Oakwood Plowing Company purchased two new plows for the upcoming winter. In 200 days, Oakwood must make a single payment of $23,200 to pay for the plows. As of today, Oakwood has $22,500. Assume the Oakwood puts the money in a bank today, what rate of interest will it need to pay off the plows in 200 days?arrow_forwardMohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $300,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 6%. B. On July 9, Mohammed borrows an additional $120,000 with payment due in four months from July 9, and an annual interest rate of 10%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar. June 10 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 July 9 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 Oct. 10 fill…arrow_forwardThe following situation applies to ABC Co. The company’s Financial Department asks Barclays bank a $80,000 loan to be made on April 1 and repaid on June 30 with an annual interest of 12%. The owner plans to increase the store’s inventory by $60,000 in April and needs the loan to pay for inventory acquisitions. The bank’s loan officer needs more information about the company's ability to repay the loan and asks the owner to forecast the store’s June 30 cash position. On April 1, Company is expected to have a $3,000 cash balance, $135,000 of accounts receivable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash payments for the next three months follow (attached) The budgeted April merchandise purchases include the inventory increase. All sales are on account. The company predicts that 25% of credit sales is collected in the month of the sale, 45% in the month following the sale, 20% in the second month, 9% in the third, and the remainder is…arrow_forward
- On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the following transactions during January. 1. Pays $6,000 in advance for 3 months’ rent of office, showroom, and repair space. 2. Purchases 40 personal computers at a cost of $1,500 each, 6 graphics computers at a cost of $2,500 each, and 25 printers at a cost of $300 each, paying cash upon delivery. 3. Sales, repair, and office employees earn $12,600 in salaries and wages during January, of which $3,000 was still payable at the end of January. 4. Sells 30 personal computers at $2,550 each, 4 graphics computers for $3,600 each, and 15 printers for $500 each; $75,000 is received in cash in January, and $23,400 is sold on a deferred payment basis. 5. Other operating expenses of $8,400 are incurred and paid for during January; $2,000 of incurred expenses are payable at January 31.…arrow_forwardMohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $350,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 7%. B. On July 9, Mohammed borrows an additional $110,000 with payment due in four months from July 9, and an nnual interest rate of 14%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar. June 10 July 9 Oct. 10 Nov. 9 Accounts Payable Cash Interest Expense Merchandise Inventory Short-Term Notes Payable II II III III II II III IIarrow_forwardGear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?arrow_forward
- Robinson’s, an electrical supply company, sold $7,800 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 5.0% interest. The due date was August 10. Short of funds, Robinson’s contacted Capital One Bank on July 20; the bank agreed to take over the note at a 6.7% discount. (Use Days in a year table.)What proceeds will Robinson’s receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.)arrow_forwardRobinson’s, an electrical supply company, sold $4,800 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 4.5% interest. The due date was August 10. Short of funds, Robinson’s contactedCapital One Bank on July 20; the bank agreed to take over the note at a 6.2% discount. (Use Days in a year table.)What proceeds will Robinson’s receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.)arrow_forwardScrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.arrow_forward
- a . On January 1 , Lumia Company's abilities are $ 80,000 and its equity is $ 60,000 on January 3 , Lumia putchases and installs solar panel assets costing $ 30,000 . For the panels , Lumia pays $ 14,000 cash and promises to pay the remaining 516,000 in six months What is the total of Lumia's assets after the solar panel purchase ? b . On March 1 , ABX Company's assets are $ 120,000 and its fiabilities are $ 50,000 . On March 5. ABX is fined $ 25.000 for failing emission standards ABX immediately pays the line in cash . After the tine is paid , what is the amount of equity for ABX ? c . On August 1. Lola Company's assets are $ 50.000 and its abilities are $ 30,000 . On August 4 Lola issues a sustainability report following SASB guidelines Investors react positively to this report on August 5 , a new investor contributes 513.000 cash and 57000 in equipment in exchange for ownership in Lola . After the investment , what is the amount of equity for Lola ?arrow_forwardBaxley Brother has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivable balance? Assume that is uses a 365 day year. I must show the work. How you arrive at the answer.arrow_forwardRobinson’s, an electrical supply company, sold $8,000 of equipment to Jim Coates Wiring, Incorporated Coates signed a promissory note May 12 with 5.2% interest. The due date was August 10. Short of funds, Robinson’s contacted Capital One Bank on July 20; the bank agreed to take over the note at a 6.9% discount. (Use Days in a year table.) What proceeds will Robinson’s receive? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College