Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 1, Problem 7AP
1)
To determine
Create the table by entering the effects of each transaction on the accounts of
2)
To determine
Prepare the income statement and the statement of owners’ equity and the balance sheet for the month of May.
3)
To determine
Prepare the statement of
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Ming Chen started a business and had the following transactions in June.
Owner invested $66,000 cash in the company along with $10,000 of equipment.
The company paid $1,100 cash for rent of office space for the month.
The company purchased $10,000 of additional equipment on credit (payment due within 30 days).
The company completed work for a client and immediately collected $1,700 cash.
The company completed work for a client and sent a bill for $8,200 to be received within 30 days.
The company purchased additional equipment for $6,300 cash.
The company paid an assistant $2,900 cash as wages for the month.
The company collected $4,500 cash as a partial payment for the amount owed by the client in transaction e.
The company paid $10,000 cash to settle the liability created in transaction c.
The owner withdrew $1,200 cash from the company for personal use.
Required:Complete the table using additions and subtractions to show the dollar effects of the transactions on individual items of…
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company had the following transactions. 1. Issue 10,000 shares of common stock in exchange for $32,000 in cash. 2. Purchase land for $19,000. A note payable is signed for the full amount. 3. Purchase storage container equipment for $8,000 cash. 4. Hire three employees for $2,000 per month. 5. Receive cash of $12,000 in rental fees for the current month. 6. Purchase office supplies for $2,000 on account. 7. Pay employees $6,000 for the first month’s salaries. Required: For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction, (1) assets increase and (2) stockholders’ equity increases.
Harris Welding Company had the following transactions for June.
June 1 Tyler Harris invested $9550 cash in a small welding business
June 2 Bought used welding equipment on account for $3050
June 5 Hired an employee to start work on July 15. Agreed on a salary of $3390 per month
June 17 Billed P. White $2230 for welding work done.
June 27 Received $1220 cash from P.White for work billed on June 17.
Journalize the transactions
Chapter 1 Solutions
Principles of Financial Accounting.
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