Question

Transactions: 1. New company start up: Owners invest $100,000 to buy shares from company 2. Company buys factory equipment fo

Cash Net Receivables Inventory Fixed Assets Total Assets Accounts Payable Other Accrued Liabilities Debt Stockholders Equity

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:- (in $)

  1. Cash/Bank - 55,000.
  2. Net Receivables - 15,000.
  3. Inventory - 65,000.
  4. Fixed Assets - 19,667.
  5. Total Assets - 154,667.
  6. Accounts Payable - 15,000.
  7. Other Accrued Liabilities - 9000.
  8. Debt - 50,000.
  9. Stockholder's Equity - 80,667
  10. Total Liabilities & Stockholder's Equity - 154,667.

Working:-

Cash/Bank - 55,000.

Shares 100000 Factory Equipment 20000
Bank Loan 50000 Inventory Payment 50000
Sales 25000 Inventory Balance Payment 50000
Closing Balance 55000

Net Receivables - 15,000. ( Sales of 15000 on point 10.)

Inventory - 65,000. (Purchase of Inventory 100000+15000-40000-10000)

Fixed Assets - 19,667. (20000 - 333 Depreciation)

Total Assets - 154,667.

Accounts Payable - 15,000. (Inventory purchase on point 14.)

Other Accrued Liabilities - 9000. (Warranty reserve 5000+2000, & Bad Debts reserve 2000)

Debt - 50,000. (Borrowed form Bank)

Stockholder's Equity - 80,667 (Capital 100,000 - Net Loss 19333)

Total Liabilities & Stockholder's Equity - 154,667.

Add a comment
Know the answer?
Add Answer to:
Transactions: 1. New company start up: Owners invest $100,000 to buy shares from company 2. Company...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Use T-accounts to record the 14 transactions noted below for this new start-up company. Record all...

    Use T-accounts to record the 14 transactions noted below for this new start-up company. Record all entries affecting the income statement into “Equity” since there are no separate T-accounts set up for the individual income statement accounts. A T-account form for you to use is provided as a separate attachment for you to print out and post these transactions. Once all transactions have been posted, populate the net ending balance for each account for the accounts listed below. These are...

  • Use T-accounts to record the 4 months’ of transactions noted below for this new start-up company....

    Use T-accounts to record the 4 months’ of transactions noted below for this new start-up company. Record all entries affecting the income statement into “Equity” since there are no separate T-accounts set up for the individual income statement accounts. Once all transactions have been posted, populate the net ending balance for each account for the accounts listed below. Month 1 $2,000,000 sale of stock occurs with all cash received by the company. $3,000,000 bank loan received from the company’s bank...

  • Month 1: $2,000,000 sale of stock occurs with all cash received by the company. $3,000,000 bank...

    Month 1: $2,000,000 sale of stock occurs with all cash received by the company. $3,000,000 bank loan received from the company’s bank at the end of the month – interest will start accruing next month (interest rate is 1% per month).  Principal and interest cash payments will be made in a lump-sum payment at the end of the loan period. Factory is leased at the beginning of the month and prepaid for the entire year up-front at a cost of $720,000.  The...

  • Month 1: $2,000,000 sale of stock occurs with all cash received by the company. $3,000,000 bank...

    Month 1: $2,000,000 sale of stock occurs with all cash received by the company. $3,000,000 bank loan received from the company’s bank at the end of the month – interest will start accruing next month (interest rate is 1% per month).  Principal and interest cash payments will be made in a lump-sum payment at the end of the loan period. Factory is leased at the beginning of the month and prepaid for the entire year up-front at a cost of $720,000.  The...

  • Account T-Account Record

    Month 1:$2,000,000 sale of stock occurs with all cash received by the company.$3,000,000 bank loan received from the company’s bank at the end of the month – interest will start accruing next month (interest rate is 1% per month).  Principal and interest cash payments will be made in a lump-sum payment at the end of the loan period.Factory is leased at the beginning of the month and prepaid for the entire year up-front at a cost of $720,000.  The first month of lease expense is expensed to the...

  • 1) 2) 3) Gross Profit During the current year, merchandise is sold for $100,000 cash and...

    1) 2) 3) Gross Profit During the current year, merchandise is sold for $100,000 cash and $505,400 on account. The cost of merchandise sold is $423,800. What is the amount of the gross profit? Purchases Transactions Rolfes Company purchased merchandise on account from a supplier for $11,100, terms 2/10, n/30. Rolfes Company returned $2,300 of the merchandise and received full credit. a. If Rolfes Company pays the invoice within the discount period, what is the amount of cash required for...

  • Instructions Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased $100,000 of inventory...

    Instructions Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased $100,000 of inventory on credit with payment terms of 1/15, net 45. Required: Using the net price method, prepare journal entries to record Johnson's purchase on October 23 and the subsequent payment on November 30. Instructions х Chart of Accounts х CHART OF ACCOUNTS Johnson Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable EXPENSES 500 Cost of Goods Sold 141 Inventory 142...

  • Calculator Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for $10,200, terms 2/10,...

    Calculator Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for $10,200, terms 2/10, n/30. Barans returned merchandise with an invoice amount of $2,100 and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is debited by Barans Company to record the return? Accounts Payable-Springhill Company Accounts Receivable Cash A Merchandise...

  • I need help from 4/1 to 12/31. first on making transactions and second with the balance...

    I need help from 4/1 to 12/31. first on making transactions and second with the balance sheet. some necessary info:Lao Che Industries $15,000(current), temple of doom co $5,500(90 days past due), Asp Co $10,000(current), ark of covenant inc $11,500(current). company common stock $2.50 par value. 100,000 shares authorized. Date Description 217 Indiana buys $3,000 of office supplies in cash. 2/15 Indiana pays off $30,000 of accounts payable. 2/18 Indiana collects the amount owed from Bellog, Inc from the 1/19 sale...

  • Company Name: Ply wood ltd The company began operations as a retailer on 1 July 2017....

    Company Name: Ply wood ltd The company began operations as a retailer on 1 July 2017. It buys and sells one inventory item, herrings. The company is registered for GST which it pays quarterly. Assume GST was last paid on 30 June. It uses the Weighted Average cost allocation method and the perpetual inventory recording method. The company uses the straight line depreciation method for office furniture and computers and the reducing balance method for motor vehicles. The company employs...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT