The following amounts summarize the financial position of Little Black Dog Inc. on May 31, 2021: Assets Liabilities Shareholders' Equity Accounts + Computers (net) Accounts Note Salaries Common Shares Interest Retained Cash + Supplies + Land = Receivable Payable Payable Payable Payable Earnings Balance 1820 700 70 8400 5600 2800 2590 During June 2021, the business completed these transactions: June 1: Received cash of $6300 and issued common shares. June 1: Bought two computers for a total of $5600 by paying $1400 down and signing a note payable for the rest. Interest of 5% to be paid with the note payable on June 1, 2022. The computers are expected to last 5 years. June 5: Performed services for a client and received cash of $2450. June 9: Paid $2450 on accounts payable. June 13: Purchased supplies on account, $1400. June 20: Collected cash from a customer on account, $350. June 23: Consulted on the design of a business report, and billed the client for services rendered, $2800. June 25: Declared and paid a cash dividend of $980. June 30: Recorded the following business expenses for the month: paid office rent, $210; paid advertising, $350. June 30: Accrued $1750 in employee salaries. Employees are paid on the first day of each month. June 30: A count revealed that $350 worth of supplies are still on hand.
The following amounts summarize the financial position of Little Black Dog Inc. on May 31, 2021: Assets Liabilities Shareholders' Equity Accounts + Computers (net) Accounts Note Salaries Common Shares Interest Retained Cash + Supplies + Land = Receivable Payable Payable Payable Payable Earnings Balance 1820 700 70 8400 5600 2800 2590 During June 2021, the business completed these transactions: June 1: Received cash of $6300 and issued common shares. June 1: Bought two computers for a total of $5600 by paying $1400 down and signing a note payable for the rest. Interest of 5% to be paid with the note payable on June 1, 2022. The computers are expected to last 5 years. June 5: Performed services for a client and received cash of $2450. June 9: Paid $2450 on accounts payable. June 13: Purchased supplies on account, $1400. June 20: Collected cash from a customer on account, $350. June 23: Consulted on the design of a business report, and billed the client for services rendered, $2800. June 25: Declared and paid a cash dividend of $980. June 30: Recorded the following business expenses for the month: paid office rent, $210; paid advertising, $350. June 30: Accrued $1750 in employee salaries. Employees are paid on the first day of each month. June 30: A count revealed that $350 worth of supplies are still on hand.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 84.1C
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