Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 3, Problem 51EB
To determine
Prepare income statement, statement of changes in
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Following are the transactions of Sustain Company.
June 1 T. James, owner, invested $16,000 cash in
Sustain Company.
June 2 The company purchased $9,000 of furniture
made from reclaimed wood on credit.
June 3 The company paid $1,600 cash for a 12-
month prepaid insurance policy on the
reclaimed furniture.
June 4 The company billed a customer $8,000 for
sustainability services provided.
June 12 The company paid $9,000 cash toward the
payable from the June 2 furniture
purchase.
June 20 The company collected $8,000 cash for
services billed on June 4.
June 21 T. James invested an additional $15,000
cash in Sustain Company.
June 30 The company received $10,000 cash in
advance of providing sustainability
services to a customer.
Prepare general journal entries for the above transactions.
Manny Gill is an entrepreneur who started West Secure, a business that provides a number of security guard services. West Secure incurred the following transactions during July 2020, its first month of operations:
July
1
The owner, Manny Gill, invested $5,300 cash.
10
Purchased $2,800 worth of security equipment on credit.
12
Performed security services for a sold-out concert and received $10,000 cash from the client.
14
Paid for expenses; $3,800.
15
Completed security services for a graduation event and sent the client a bill for $1,650.
31
The owner withdrew $280 cash for personal use.
Required:
Record the journal entries for the month of July.
Post the July journal entries into your general ledger accounts. Include the date next to each number posted. Determine the balances.
Prepare a trial balance using the balances in your general ledger accounts.
Prepare an income statement, statement of changes in equity, and…
On June 1, 2020, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during
the company's first month:
June 1 Near created the new company by investing $40,000 cash, $5,000 of furniture, and computer equipment worth
$60,000.
2 The company rented furnished office space by paying $3,200 rent for the first month.
3 The company purchased $2,400 of office supplies for cash.
10 The company paid $7,200 for the premium on a one-year insurance policy.
14 The owner's assistant was paid $3,600 for two weeks' salary.
24 The company collected $13,600 of commissions from airlines on tickets obtained for customers.
The assistant was paid another $3,600 for two weeks' salary.
28
The company paid the month's $3,500 phone bill.
The company repaired its computer for $700 on account.
29
30
30
The owner withdrew $2,850 cash from the business for personal use.
The company's chart of accounts included these accounts:
101
Cash
302 Sam Near, Withdrawals
106 Accounts Receivable…
Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1YTCh. 3 - Prob. 2YTCh. 3 - Prob. 3YTCh. 3 - Prob. 4YTCh. 3 - Prob. 5YTCh. 3 - Prob. 6YTCh. 3 - Prob. 7YTCh. 3 - How does accrual basis accounting differ from cash...Ch. 3 - Prob. 2QCh. 3 - Prob. 3Q
Ch. 3 - Prob. 4QCh. 3 - What are accrued expenses?Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Name two common deferred expenses.Ch. 3 - What does it mean to recognize revenue?Ch. 3 - How does matching relate to accruals and...Ch. 3 - What is depreciation?Ch. 3 - Why is depreciation necessary?Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - When prepaid insurance has been used, the...Ch. 3 - Prob. 10MCQCh. 3 - Prob. 1SEACh. 3 - Prob. 2SEACh. 3 - Account for interest expense. (LO 1, 2). UMC...Ch. 3 - Prob. 4SEACh. 3 - Account for insurance expense. (LO 1, 3). Catrina...Ch. 3 - Prob. 6SEACh. 3 - Account for unearned revenue. (LO 1, 3). Able...Ch. 3 - Prob. 8SEACh. 3 - Prob. 9SEACh. 3 - Prob. 10SEACh. 3 - Calculate profit margin on sales ratio. (LO 5)....Ch. 3 - Prob. 12SEBCh. 3 - Prob. 13SEBCh. 3 - Prob. 14SEBCh. 3 - Prob. 15SEBCh. 3 - Prob. 16SEBCh. 3 - Prob. 17SEBCh. 3 - Prob. 18SEBCh. 3 - Prob. 19SEBCh. 3 - Calculate net income. (LO I, 4). Suppose a company...Ch. 3 - Prob. 21SEBCh. 3 - Prob. 22SEBCh. 3 - Prob. 23EACh. 3 - Prob. 24EACh. 3 - Prob. 25EACh. 3 - Prob. 26EACh. 3 - Prob. 27EACh. 3 - Prob. 28EACh. 3 - Account for insurance expense. (LO 1, 3). Yodel ...Ch. 3 - Prob. 30EACh. 3 - Prob. 31EACh. 3 - Prob. 32EACh. 3 - Prob. 33EACh. 3 - Prob. 34EACh. 3 - Southeast Pest Control, Inc., was started when its...Ch. 3 - Prob. 36EACh. 3 - Prob. 37EACh. 3 - Prob. 38EACh. 3 - Prob. 39EACh. 3 - Prob. 40EBCh. 3 - Prob. 41EBCh. 3 - Prob. 42EBCh. 3 - TJs Tavern paid 10,800 on February 1, 2010, for a...Ch. 3 - Prob. 44EBCh. 3 - Prob. 45EBCh. 3 - Account for insurance expense. (LO 1, 3). All...Ch. 3 - Prob. 47EBCh. 3 - Prob. 48EBCh. 3 - Prob. 49EBCh. 3 - Prob. 50EBCh. 3 - Prob. 51EBCh. 3 - Prob. 52EBCh. 3 - From the following list of accounts (1) identify...Ch. 3 - Prob. 54EBCh. 3 - Prob. 55EBCh. 3 - Prob. 56EBCh. 3 - Prob. 57PACh. 3 - Prob. 58PACh. 3 - Prob. 59PACh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 61PACh. 3 - Record adjustments. (LO 1, 2, 3). The Gladiator...Ch. 3 - Prob. 63PACh. 3 - Transactions for Pops Company for 2011 were as...Ch. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 66PACh. 3 - Prob. 67PACh. 3 - Record adjustments and prepare income statement....Ch. 3 - Prob. 69PBCh. 3 - Prob. 70PBCh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 72PBCh. 3 - Record adjustments. (LO 1, 2, 3). Summit Climbing...Ch. 3 - Prob. 74PBCh. 3 - Prob. 75PBCh. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 77PBCh. 3 - Prob. 78PBCh. 3 - Identify and explain accruals and deferrals. (LO...Ch. 3 - Prob. 2FSACh. 3 - Prob. 3FSACh. 3 - Prob. 1CTPCh. 3 - Prob. 1IECh. 3 - Prob. 3IECh. 3 - Prob. 4IE
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- Following are the transactions of Sustain Company. June 1 T. James, owner, invested $15,500 cash in Sustain Company in exchange for common stock. June 2 The company purchased $8,500 of furniture made from reclaimed wood on credit. June 3 The company paid $1,500 cash for a 12-month prepaid insurance policy on the reclaimed furniture. June 4 The company billed a customer $7,500 for sustainability services provided. June 12 The company paid $8,500 cash toward the payable from the June 2 furniture purchase. June 20 The company collected $7,500 cash for services billed on June 4. June 21 T. James invested an additional $14,500 cash in Sustain Company in exchange for common stock. June 30 The company received $9,500 cash in advance of providing sustainability services to a customer. Prepare general journal entries for the above transactions.arrow_forwardAssume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated—a company that sells de-motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. Received $34,000 cash from the investors who organized Down, Incorporated Borrowed $19,000 cash and signed a note due in two years. Ordered equipment costing $16,000. Purchased $10,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. Received the equipment ordered in (c), paid for half of it, and put the rest on account. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.arrow_forwardOn October 1, 2021, Santana Rey launched a computer services company, Business Solutions, that is organized as a corporation and provides consulting services, computer system installations, and custom program development. October 1 S. Rey invested $55,000 cash, a $27,000 computer system, and $10,000 of office equipment in the company in exchange for its common stock. October 3 The company purchased $1,330 of computer supplies on credit. October 6 The company billed Easy Leasing $5,600 for services performed in installing a new web server. October 8 The company paid $1,330 cash for the computer supplies purchased on credit on October 3. October 10 The company hired a part-time assistant. billed Easy Leasing another $2,100 for services performed. October 12 The company October 15 The company received $5,600 cash from Easy Leasing as partial payment toward its account. October 17 The company paid $730 cash to repair its computer equipment. October 20 The company paid $1,673 cash for…arrow_forward
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