The following events concern Anita Wilson, a Manitoba law school graduate, for March 2021: 1. On March 4, she spent $20 on a lottery ticket. 2. On March 7, she won $ 260,000 in the lottery and immediately quit her job as a junior lawyer. 3. On March 10, she decided to open her own law practice, and deposited $ 65,000 of her winnings in a business chequing account, Wilson Legal Services. 4. On March 14, she purchased a new luxury condominium with a down payment of $150,000 from her personal funds plus a home mortgage of $ 250,000. 5. On March 15, Anita signed a rental agreement for her law office space for $2,500 a month, starting March 15. She paid the first month’s rent, as it is due on the 15th of each month. 6. On March 19, she hired a receptionist. He will be paid $ 750 a week and will begin working on March 24. 7. On March 20, she purchased equipment for her law practice from a company that had just declared bankruptcy. The equipment was worth at least $15,000 but Anita was able to buy it for only $ 8,800. 8. On March 21, she purchased $ 175 of supplies on account. 9. On March 24, she purchased an additional $ 5,600 of equipment for her law practice for $ 2,100 plus a $3,500 note payable due in six months. 10. On March 31, she performed $ 3,900 of legal services on account. 11. On March 31, she received $2,500 cash for legal services to be provided in April. 12. On March 31, she paid her receptionist $ 750 for the week. 13. On March 31, she paid $ 175 for the supplies purchased on account on March 21.

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 4CE

Related questions

Question

100%

The following events concern Anita Wilson, a Manitoba law school graduate, for March 2021:

1.		On March 4, she spent $20 on a lottery ticket.
2.		On March 7, she won $ 260,000 in the lottery and immediately quit her job as a junior lawyer.
3.		On March 10, she decided to open her own law practice, and deposited $ 65,000 of her winnings in a business chequing account, Wilson Legal Services.
4.		On March 14, she purchased a new luxury condominium with a down payment of $150,000 from her personal funds plus a home mortgage of $ 250,000.
5.		On March 15, Anita signed a rental agreement for her law office space for $2,500 a month, starting March 15. She paid the first month’s rent, as it is due on the 15th of each month.
6.		On March 19, she hired a receptionist. He will be paid $ 750 a week and will begin working on March 24.
7.		On March 20, she purchased equipment for her law practice from a company that had just declared bankruptcy. The equipment was worth at least $15,000 but Anita was able to buy it for only $ 8,800.
8.		On March 21, she purchased $ 175 of supplies on account.
9.		On March 24, she purchased an additional $ 5,600 of equipment for her law practice for $ 2,100 plus a $3,500 note payable due in six months.
10.		On March 31, she performed $ 3,900 of legal services on account.
11.		On March 31, she received $2,500 cash for legal services to be provided in April.
12.		On March 31, she paid her receptionist $ 750 for the week.
13.		On March 31, she paid $ 175 for the supplies purchased on account on March 21.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images