Question wise answer is as below
1. On formation of new Company and receipt of cash of $ 12,000 from shareholders
Cash Dr $ 12,000
To Share capital Cr $ 12,000
2. On purchase of truck for $ 18,000
Truck A/c Dr $ 18,000
To Cash Cr $ 18,000
(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)
3. On payment of dividend in cash
Dividend A/c Dr $ 10,000
To Cash Cr $ 10,000
4. On purchase of land
Land A/c Dr $ 50,000
To cash Cr $ 50,000
( On purchase of land on payment of $ 50,000).
There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:
Land A/c Dr $ 55,000
To Cash Cr $ 50,000
To gain on purchase of land Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr $ 1,100
To Dividend Payable A/c Cr $ 1,100
On payment of dividend after 60 days
Dividend payable A/c Dr $ 1,100
To Cash Cr $ 1,100
6. After each month wages will be due to its workers, then accounting entry will be recorded as under
Wages A/c Dr $ 5,600
To Wages payable A/c Cr $ 5,600
After two weeks, on payment of wages, the accounting entry will be recorded as under
Wages payable A/c Dr $ 5,600
To cash Cr $ 5,600
1. A new company is formed and shareholders invest $12,000 cash 2. A company purchases for...
Received Given Building Cash Cash and notes payable Common stock and additional paid-in capital (a): (b) (C) (d) (e) (f) (g) (h) (i) () (k) (1) (m) Dividends payable Required: 1. Select the appropriate account titles, if any, affected in each of the preceding events. Consider what is received and what is given. (In cases where no entry is required, please select the option "No exchange transaction" for your answer to grade correctly.) Received Given Equipment Intangibles Investments Land (a):...
The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $12,500 within three months. b. A company purchases for $16,000 cash a new delivery truck that has a list ("sticker") price of $18,500. CAwomen's clothing retailer orders 20 new display stands for $110 each for future delivery. d. A new company is formed and issues 200 shares for $10 per share to investors. e....
The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three months b. A company purchases for $24,000 cash a new delivery truck that has a list (sticker) price of $27.000. c. A women's clothing retailer orders 30 new display stands for $330 each for future delivery d. A new company is formed and issues 100 shares of stock for 312 per...
The folowing are independent situations. ล. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $20,000 within three months b. A company purchases for $33,000 cash a new dellvery truck that has a list(sticker) price of $36,000 C. A women's dothing retailer orders 30 new display stands for $420 each for future delivery. d. A new company is formed and Issues 100 shares of stock for $12 per share...
The Sanya Company incorporated on January 1, 2016 as a wholesaler. It purchases products from suppliers and resells the inventory to commercial customers. During 2016, Sanya engaged in various transactions. A subset of these transactions is listed below. Here are templates that are useful, but I am still confused with the processes and how to set them up. 1) 2) 3) The Sanya Company incorporated on January 1, 2016 as a wholesaler. It purchases products from suppliers and resells the...
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Indicate whether each event or transaction below affects (i.e., increases or decreases) the cash flows of a corporation related to its Operating Activities (CFO), Investing Activities (CFI), or Financing Activities (CFF). Please write how much the net change on cash flows by item will be. If the items do not affect cash flows, please use “NA”. Example: A company buys a new building for $200,000 paying cash. Answer: CFI, -$200,000 (or -$200k) __________ 1. A local government donates land with fair...
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On Jamary 1, Peter incorporates Peter Stores, Inc., a DVD store. He contributes $25,000 cash. Peter is the sole owner. 2. Oa January 1, the corporation borrows $12,500 from a bank. 3. On Jamuary 1, the business buys inventory (merchandize for sale) in the amount of $5,000 paying cash 4. On January 1, the business purchases a three-year insurance policy for $1 224 paying cash The company also records the following transactions in January: 5. The company buys inventory for...
Requirement 1 Cash receipt from customer's Budget Dec Total You are provided with the following Sales Budget, Purchases Budget and selling and administrative expenses budget for Salhiya World Co. for the last quarter of the year 2019. Nov Oct. Oct. Collections From Oct. Sales From Sep Sales Total Oct collection Nev, Cellections: Froem Nov. Sales From Oct Sales Total Nov collections Dec. Collections: From Dec. Sales Frem Nov. Sales Total Dec. collections Total cash receipt (ISles Budeet Tetal 135,000 45,000...