Tobias Eaden started a sole proprietorship named Sky High Ads. A
customer’s message can be displayed on an airplane banner across
the city. The following are Sky High Ad’s business activities
during the month of November 2017:
Nov | 1 |
Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads. |
3 | Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance. | |
7 | Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business. | |
9 | Purchased $5,000 of supplies on credit. | |
13 | Provided services to a customer for a marriage proposal of $16,000 on credit. | |
17 | Paid $3,000 wages to a pilot. | |
21 | Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15. | |
23 | Paid for half of the account payable from the November 9 transaction. | |
27 | Purchased $20,000 of new aircraft equipment by paying $15,000 cash and trading in old aircraft equipment with a recorded cost of $5,000. | |
30 | Withdrew $3,200 cash from the business for personal use. |
Required:
1. Not available in Connect.
2. Not available in Connect.
3. Prepare General Journal entries for each of the
above transactions. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
Date | Account Description | Debit | Credit |
01 Nov | Aircraft A/c | 50,000 | |
Investment A/c | 2,00,000 | ||
To Cash / Bank A/c | 2,50,000 | ||
03 Nov | Land A/c | 4,00,000 | |
Office Building A/c | 1,00,000 | ||
To Cash / Bank A/c | 1,25,000 | ||
To Long term notes Payable | 3,75,000 | ||
07 Nov | Airplane A/c | 2,00,000 | |
To , Capital A/c | 2,00,000 | ||
09 Nov | Purchases A/c | 5,000 | |
To Creditors / Payable A/c | 5,000 | ||
13 Nov | Receivables / Debtors A/c | 16,000 | |
To Sales / Revenue A/c | 16,000 | ||
17 Nov | Wages A/c | 3,000 | |
To Cash / Bank A/c | 3,000 | ||
21 Nov | Deposit A/c | 250 | |
To Payable A/c | 250 | ||
23 Nov | Payable / Creditors A/c | 4,500 | |
To Cash / Bank A/c | 4,500 | ||
27 Nov | Depreciation A/c | 45,000 | |
Aircraft A/c | 20,000 | ||
To Cash / Bank A/c | 15,000 | ||
To Sale of an asset (old Aircraft) A/c | 50,000 | ||
30 Nov | Capital A/c | 3,200 | |
To Cash / Bank A/c | 3,200 | ||
Tobias Eaden started a sole proprietorship named Sky High Ads. A customer’s message can be displayed...
please help me analyze this problem. thank you
From problem 2-1 to 2-5
CHAPTER Case A Case B Case C $ 120 260 3,170 $ 3.900 1.900 12.900 $ 59 46 791 $ 190 1.100 $ 2.350 16.150 $72 229 Cash Accounts receivable Equipment Accounts payable Capital withdrawals Revenue.. Wages expense Total 850 7.000 0 3,000 9,600 610 8,700 $34 400 $5.010 $4,290 10 $906 $28.100 $942 PROBLEMS Problem 2-1A Analyzing transactions and recording journal entries L03,5 Tobias Eaden started...
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