Year 1 Transactions for Adomain | ||||
Transaction # | Date | Event | ||
1 | January 1 | Spent $17,000 in cash for costs related to research and development of new products. | ||
2 | March 15 | Paid last year's income tax liability. | ||
3 | April 1 | Received cash of $22,500 in advance for services. The service will be performed over the course of 5 months beginning on Dec. 1 of this year. | ||
4 | April 1 | Prepaid $36,000 in rent for the next 12 months and recorded the transaction as an asset. | ||
5 | April 1 | Purchased inventory for $23,000. Paid $1500 in cash and recorded an accounts payable for the rest. | ||
6 | April 5 | Paid $16,000 in cash for marketable securities. | ||
7 | May 1 | Sold inventory on account for $175,000. The cost of the inventory was $40,000. Also, paid a sales commission on this sale of $10,000. | ||
8 | June 30 | Received the cash to settle $75,000 of the receivables recorded on May 1. | ||
9 | July 15 | Purchased a patent for $35,000 in cash. | ||
10 | July 31 | Purchased supplies for $3000 in cash. The accountant accidently recorded it as an Accounts Receivable. | ||
10 | July 31 | Adjust the account to reflect how the accountant should have recorded it. | ||
11 | Sept 30 | Borrowed $15,000 from a local bank and signed a 3-year note payable promising to pay 10% interest per year (interest is due on Dec 30). | ||
12 | October 1 | Purchased PPE for $29,000 cash. | ||
13 | October 1 | Billed a company $80,000 for services performed and completed. | ||
14 | October 31 | Received $80,000 in cash relating to the Accounts Receivable in transaction 13. | ||
15 | Dec 1 | Salaries of general officers were $18,000. The company paid $7,000 now and the remainder will be paid on Jan 1, Year 2. | ||
16 | Dec 31 | Income Tax for Year 1 is $22,000. $19,000 is paid this year and the remainder will be paid on March 15 of Year 2. | ||
17 | Dec 31 | Record the appropriate adjusting entry related to unearned revenue described in transaction 3. | ||
18 | Dec 31 | Record the appropriate adjusting entry related to the rent described in transaction 4. | ||
19 | Dec 31 |
$500 of supplies are still on hand on Dec 31. Record the appropriate adjusting entry to reflect the supplies left on hand. (Refer to transaction 10) |
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20 | Dec 31 |
Record the appropriate adjusting entry related to the note payable described in transaction 11. Create Journal Entries |
Appropriate adjusting entry related to the note payable :
Transaction | Date | General journal | Dr | Cr |
11 | Dec 30 | Interest expense [15000 * 10% * 3 /12 months] | 375 | |
Interest payable | 375 | |||
[Being interest on notes payable due on 30 Dec is recorded] |
Note:- Journal entry for Borrowing $15,000 borrowed and signed a 3-year note payable
Transaction | Date | General journal | Dr | Cr |
11 | Sept 30 | Cash | 15000 | |
Long term Notes payable | 15000 | |||
[Being $15,000 borrowed and signed a 3-year note payable ] |
Year 1 Transactions for Adomain Transaction # Date Event 1 January 1 Spent $17,000 in cash...
Year 1 Transactions for Adomain Transaction # Date Event 1 January 1 Purchased a patent for $32,000 in cash 2 March 15 Paid $18,500 in cash for long-term assets 3 April 1 Prepaid $36,000 for rent for the next 12 months and recorded the transaction as an asset. 4 April 1 Issued 1000 common shares to investors for $60,000 5 April 1 Sold inventory on account for $120,000 (a). The cost of the inventory was $16,000 (b). Also, paid a...
Year 1 Transactions for Adomain Date January 1 Purchased a patent for $32,000 in cash March 15 Paid $18.500 in cash for long-term assets April 1 Prepaid $36,000 for rent for the next 12 months and recorded the transaction as an asset. April 1 Issued 1000 common shares to investors for $60,000 April 1 Sold inventory on account for $120,000. The cost of the inventory was $16,000. Also, paid a sales commission on this sale of $10,000. April 5 Paid...
Α. B co E F G Adomain Balance Sheet As of December 31, Year O 7 $80,000 6,700 20,000 25,000 34,700 10,500 15,000 $191,900 4 Assets 5 Cash 6 Marketable Securities Accounts Receivable 8 Inventory 9 PP&E (net) 10 Intangible Assets 11 Other Long-Term Assets 12 Total Assets 13 14 Liabilities & Equity 15 Accounts Payable 16 Notes Payable 17 Unearned Revenue 18 Income Tax Payable 19 Common Stock 20 Retained Earnings 21 Total Liabilities & Equity $45,000 28,500 50,000...
Α. B co E F G Adomain Balance Sheet As of December 31, Year O 7 $80,000 6,700 20,000 25,000 34,700 10,500 15,000 $191,900 4 Assets 5 Cash 6 Marketable Securities Accounts Receivable 8 Inventory 9 PP&E (net) 10 Intangible Assets 11 Other Long-Term Assets 12 Total Assets 13 14 Liabilities & Equity 15 Accounts Payable 16 Notes Payable 17 Unearned Revenue 18 Income Tax Payable 19 Common Stock 20 Retained Earnings 21 Total Liabilities & Equity $45,000 28,500 50,000...
I need help making a general journal from those transactions. I also need help with the closing entries at the bottom of the journal AutoSave OFF Ô sv5- Group Project 1 Part B-- Spring 2020_for distribution Home Insert Draw Page Layout Formulas Data Review View Share Comments 18 A = = DO Text - E E 3 Insert v Ev 48- O 5 min Times New Roman BIU A A = E Paste $ % 48.20 Conditional Format Formatting as...
Each of the following independent events requires a year-end adjusting entry. Paid $9,900 cash in advance on July 1 for a one-year lease on office space. Purchased $3,400 of supplies on account on April 15. At year-end, $270 of supplies remained on hand. Received a $8,800 cash advance on July 1 for a contract to provide services for one year beginning immediately. Paid $3,800 cash in advance on February 1 for a one-year insurance policy. Required Record each event and...
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