Question

can you help me with the jounal entry, the T account, the balance sheet, the income statement, the owner equity , the earning per share on this problem

67 Homework #3 Problem 3-1 Complete Fluff, Inc. Your homework will always include finishing whatever was not completed during class and reading all pages up to the start of the next class. Problem 3-28 Beamer Business Year 2020 Chris opened a Beamer business on January 1, 2020. She started with $600,000; 400,000 of her own money, for which she received 4,000 shares of common stock, and $200,000 borrowed from her Uncle Phil (Note Payable). The Note Payable to Uncle Phil requires that she pay the interest at 4% annually on December 31. She paid the $8,000 interest on December 31, 2020. She is required to repay the principal at the end of year 2024. She planned to operate her business as a corporation, Chris's Beamer Biz, Inc. (CBB, Inc.). During the year she bought ten Beamers for $40,000 each. She sold eight of the Beamers for $60,000 each. Other expenses she paid cash for were: wages, $20,000; rent, $12,000; and utilities $1,000. She signed a 20-year lease and put down a rent security deposit of $1.000. In addition to the cash she invested on January 1st, on June 1st she also invested a piece of land she owned in the business that was worth $50,000 in exchange for 500 shares of common stock. At the end of the year she owed her worker wages of $1,000. She paid a dividend of $3,000. The tax rate is 30% and Chris will pay 2020 taxes in 2021. So how did Chris do? (Do everything - Journal Entries, T-Accounts, Financial Statements).

Answer 1

Debit Credit 32 33 34 600,000 Date Account title & explanation 2020 1-Jan Cash Common Stock (4000*100) Note Payable (To record started business) 400,000 200,000 400,000 Beamers (40000*10) Cash (To record purchase of Beamers 400,000 480,000 Cash Sales Revenue (8*60000) (To record Sales Revenue) 480,000 320,000 Cost of Goods Sold (8*40000) Beamers (To record cost of Beamers sold) 320,000 Wages expense Rent expense Utilities epense Cash (To record payment of expenses) 20,000 12,000 1,000 33,000

1,000 Lease expense (Rent Security Deposit) Cash (To record payment of expenses) 1,000 Land 50,000 Common Stock (500*100) (To record purchase of Land in exchange of common Stock) 50,000 8,000 Interest expense Cash (To record payment of interest expense) 8,000 1,000 Wages Expense Wages Payable ((To record accrued wages) 1,000 3,000 Dividend Cash (To record payment of dividend) 3,000 35,100 Income Tax Expense Income Tax Payable (To record accrued income taxes) 35,100

T- Accounts Cash 600,000 480,000 Land 50,000 400,000 33,000 1,000 8,000 3,000 635,000 50,000 Beamers 400,000 Notes Payable 200,000 320,000 80,000 200,000 Wages Payable Income Tax Payable 35,100 1,000 1,000 35,100 Dividends 3,000 Common Stock 400,000 50,000 450,000 3,000

105 Sales Revenue 480,000 Cost of Goods Sold 320,000 480,000 320,000 109 Rent expense 12,000 111 Wages expense 20,000 1,000 21,000 112 12,000 115 Utilities expense 1,000 Interest expense 8,000 117 1,000 8,000 119 121 Lease expense 1,000 Income Tax expense 35,100 123 1,000 35,100

126 127 128 Credit 129 130 131 132 133 200,000 1,000 35,100 450,000 134 Chris's Beamer Biz Inc. Trial Balance For the Year Ending 31st Dec. 2020 Account title Debit Cash 635,000 Land 50,000 Beamers 80,000 Notes Payable Wages Payable Income Tax Payable Common Stock Dividends 3,000 Sales Revenue Cost of Goods Sold 320,000 Wages expense 21,000 Rent expense 12,000 Utilities expense 1,000 Lease expense 1,000 Interest expense 8,000 Income Tax expense 35,100 Total 1,166,100 135 136 137 480,000 138 139 140 141 143 145 1,166,100

147 148 149 150 151 480,000 320,000 160,000 Аннннннн Chris's Beamer Biz Inc. Income Statement For the Year Ending 31st Dec. 2020 Sales Revenue Cost of Goods Sold Gross Profit Expenses Wages expense 21,000 Rent expense 12,000 Utilities expense 1,000 Lease expense 1,000 Net Income Before Interest and Tax Interest expense Net Income after Interest but before Tax Income Tax expense (117000*30%) Net Income 159 35,000 125,000 8,000 117,000 35,100 81,900 160 161 162 163 164 165 166 167 Chris's Beamer Biz Inc. Retained Earnings Statement For the Year Ending 31st Dec. 2020 Beginning Balance of Retained Earnings Add Net Income 81,900 Less Dividends (3,000) Ending Balance of Retained Earnings 168 169 170 78,900 78,900

172 173 176 635,000 50,000 80,000 178 179 765,000 180 Chris's Beamer Biz Inc. Balance Sheet As on 31st Dec. 2020 Assets Cash Land Beamers Total Assets Liablities and Shareholder's Equity Notes Payable Wages Payable Income Tax Payable Total Liabilities Common Stock Retained Earnings Total Liabilities and Shareholder's Equity 182 183 200,000 1,000 35,100 236,100 90 450,000 78,900 186 528,900 765,000 187 188