On April 1, Tamarisk, Inc. was established. These transactions were completed during the month.1.Stockholders Invested $28,900 cash in the company in exchange for common stock.2.Paid $840 cash for April office rent.3.Purchased office equipment for $3,300 cash.4.Purchased $370 of advertising in the Chicago Tribune, on account.Paid $510 cash for office supplies.6.Performed services worth $12,600. Cash of $3,200 is received from customers, and the balance of $9.400 isbilled to customers on account.7.Paid $510 cash dividends.8.Paid Chicago Tribune amount due in transaction (4).9.Paid employees' salaries $1.280.10.Received $9,400 in cah from customers billed previously in transaction (6).5. AssetsCash+ Accounts Receivable+ Supplies(1)%24(2)(3)(4)(5)(6)(7)(8)(9)(10)%24eTextbook and MediaFrom an analysis of the Retalned Earnings columns, compute the net income or net loss for April. (Enter negativeamounts using either a negative sign preceding the number e.s. -45 or parentheses es. (45).)Net Income / (Loss) for AprileTextbook and Media%24

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Description: On April 1, Tamarisk, Inc. was established. These transactions were completed during the month.1.Stockholders Invested $28,900 cash in the company in exchange for common stock.2.Paid $840 cash for April office rent.3.Purchased office equipment for $

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On April 1, Tamarisk, Inc. was established. These transacti 1 Stockholders Invested $28,900 cash in the compa 2. Paid $840 cash for April office rent. 3. Purchased office equipment for $3,300 cash. Purchased $370 of advertising in the Chicogo Trih

On April 1, Tamarisk, Inc. was established. These transacti 1 Stockholders Invested $28,900 cash in the compa 2. Paid $840 cash for April office rent. 3. Purchased office equipment for $3,300 cash. Purchased $370 of advertising in the Chicogo Trih

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 11PB: Prepare journal entries to record the following transactions that occurred in April: A. on first day...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the business and received 4,700 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,650; December 31, current year, amounts due from customers from sales of books, $39,500; unused portion of store and office equipment, $73,500: December 31, current year, amounts owed to publishers for books purchased, $12,600; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet as of the end of the current year. Some information has been given below. 2. What was the amount of net income for the year? (Hint: Use the retained earnings equation (Beginning Retained Earnings + Net Income…
A company had the following transactions during September, the first month of its operations: ● • Issued 20,000 shares of common stock in exchange for $560,000. • Purchased equipment for $280,000, using a $140,000 cash down payment and signing a note payable for the balance. • Received $1,400 from a customer for services to be performed in November. • Total monthly sales: Cash sales $70,000 Credit Sales (Acct. Receivable): $25,200 · • Purchased supplies on credit for $32,200. • Made a $42,000 payment on the note payable from the purchase of the land. • Collected $11,200 from customers on account. . • Paid $3,500 for September employee wages. • Received a utility bill for $700 which will be paid next month. What is total stockholders' equity at the end of September? Select one: O O O O O a. $655,200 b. $625,800 C. $560,000 d. $783,300 e. $651,000
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On April 1, Splish Brothers Inc. began operations. The following transactions were completed during the month. 1. Stockholders invested $21,100 in the business in exchange for common stock. Obtained a bank loan for $6,200 by issuing a note payable. Paid $9,700 cash to buy equipment. Paid $1,100 cash for April office rent. Paid $1,300 for supplies. Purchased $530 of advertising in the Daily Herald, on account. Performed services for $15,800: cash of $1,760 was received from customers, and the balance of $14,040 was billed to customers on account. Paid $350 cash dividend to stockholders. Paid the utility bill for the month, $1,760. Paid Daily Herald the amount due in transaction (6). Paid $40 of interest on the bank loan obtained in transaction (2). Paid employees' salaries and wages, $5,630. Received $10,560 cash from customers billed in transaction (7). 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Journalize the transactions. (Credit account titles are automatically indented when amount is…
On April 1, Larkspur, Inc. began operations. The following transactions were completed during the month. 1. Stockholders invested $23,500 in the business in exchange for common stock. Obtained a bank loan for $6,900 by issuing a note payable. Paid $10,800 cash to buy equipment. Paid $1,200 cash for April office rent. Paid $1,400 for supplies. Purchased $590 of advertising in the Daily Herald, on account. Performed services for $17,600: cash of $1,960 was received from customers, and the balance of $15,640 was billed to customers on account. Paid $390 cash dividend to stockholders. Paid the utility bill for the month, $1,960. Paid Daily Herald the amount due in transaction (6). Paid $40 of interest on the bank loan obtained in transaction (2). 2. 3. 5. 6. 7. 8. 9. 10. 11. 12. 13. Paid employees' salaries and wages, $6,270. Received $11,760 cash from customers billed in transaction (7). Journalize the transactions. (Credit account titles are automatically indented when amount is entered.…
Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the business and received 5,800 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $70,150; December 31, current year, amounts due from customers from sales of books, $41,000; unused portion of store and office equipment, $78,000; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,200. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet as of the end of the current year. Some information has been given below. 2. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income…
During the month of July, the company had the following activities: Issued 3,500 shares of common stock for $350,000 cash. Borrowed $52, 500 cash from a local bank, payable in two years. Bought a building for $233,750; paid $51,750 in cash and signed a three-year note for the balance. Paid cash for equipment that cost $205,000. Purchased supplies for $14,000 on account. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
The transactions relating to the formation of Blue Co. Stores Inc., and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $8,200. b. The firm borrowed $5,000 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,750 were purchased for cash. The original list price of the equipment was $1,970, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,350 was paid for the first month's rent. e. Inventory of $15,800 was purchased; $9,900 cash was paid to the suppliers, and the balance will be paid within 60 days. f. During the first week of operations, merchandise that had cost $4,500 was sold for $5,900 cash. g. A newspaper ad costing $130 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,300 was purchased; cash of $1,200 was paid, and the…
On April 1, Sage Hill Inc. was established. These transactions were completed during the month. 1. Stockholders invested $30,600 cash in the company in exchange for common stock. 2. Paid $870 cash for April office rent. 3. Purchased office equipment for $2,980 cash. 4. Purchased $140 of advertising in the Chicago Tribune, on account. 5. Paid $350 cash for office supplies. 6. Performed services worth $12,700. Cash of $3,400 is received from customers, and the balance of $9,300 is billed to customers on account. 7. Paid $400 cash dividends. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees’ salaries $1,380. 10. Received $9,300 in cash from customers billed previously in transaction (6).
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