Question

Use the following image(IF NEEDED) to answer the question below.

QUESTION:

Cronah has the following normal account balances: contributed capital, $1,000,000; accounts payable, $14,000; property, plant and equipment, $100,000; revenue, 500,000; wage expense, $10,000; inventory, $130,000; cash, $850,000; accounts receivable, $250,000, retained earnings, $326,000; and cost of goods sold, $200,000.

(T of F)

Total assets are $1,330,000   

o True

o False

g Goal: Prepare trial balance, generate financial statements using ACCRUAL-basis accounting. 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent of $500 cash. d. On January 27, 2015, Kissimmee issues a 12% note payable to purchase warehouse equipment for $10,000. e. On January 10, 2015, Kissimmee purchases goods from a wholesaler for $2,500 cash, and sells the goods on the same day to a customer for $4,500 cash. f. On January 15, 2015, Kissimmee pays wages due employees in the amount of $750 cash. On January 20, 2015, Kissimmee pays various utility expenses in the amount of $400 cash. h. On January 25, 2015, Kissimmee purchases goods on credit from a wholesaler in the amount of $1,000. i. On January 26, 2015, Kissiminee settles $400 of accounts payable with cash payinents. j. On January 27, 2015, Kissimmee sells goods to a customer, which cost $900, for $2,000 cash. k. On January 28, 2015, Kissiminee prepays the February rent of $500 cash. 1. On January 29, 2015, Kissimmee makes a credit sale of goods to a customer, which cost $100, for $200. m. On January 30, 2015, Kissimmee purchases machinery with $5,000 cash. 11. On January 30, 2015, Kissiminee settles the Note Payable with interest for $10,100. o. On January 31, 2015, Kissimmee collects $200 from previous credit sales. p. On January 31, 2015, Kissiminee makes cash payinents for salaries and wages for $1,500. Liabilities Shareholders' Equity Transaction Accounts Prepaid Accounts Notes Contributed reference Cash Receivable Inventory Rent Payable Payable Capital Revenue (+) Expenses (-) $100,000 $100,000 Assets PP&E S(500) $500 a h D с d e(1) e(2) f $10,000 $10,000 $4,500 = $4,500 $(2,500) S(750) S(400) $2,500 $750 $400 $1.000 $1.000 ($400) ($400) $2,000 $2,000 g h i j(1) j (2) k 1(1&2) III ($900) $900 ($500) $500 $200 ($100) $200 $100 $5,000 ($5.000) ($10.100) 11 ($10.000) $100 $200 ($1.500) ($200) р $1,500 Totals $85.050 $0 $0 $1.000 $15,000 $600 SO $100.000 $6,700 S6,250

Answer 1

Toue Total assets one $ 1330ooo loo 000 Property Plent and equipment Inventory 130ooo 850000 Cash Accounts receivable 250000 Total Asset = 133000 Answer = True .