Question

1. On Jan-1 Our Business Received $33,000 in Cash from Investors in Exchange for Stock in the Corporation. 2. On Jan-2 Our Business paid $18,000 with check for Insurance for the next 6 months 3. On Jan-3 Our Business purchased a Building for $264,000 by paying a Cash Down Payment Today of $30,000 and Signing a Note Payable for the remaining Balance Due. The Building has 20 year LIFE. 4. On Jan-4 Our Business received a $20,000 Check from the Haynes Corp for Services to be provided later. 5. On Jan-25 Our Business recorded Current Months Salaries of $9,900 to be paid next month. 6. On Jan-26 Our Business provided Services to the GAV Corp worth $55,000 and we received a $15,000 Check from the Customer and Billed the Customer the Remainder on Account. 7. On Jan-27 Our Business provided Services to the Haynes Corp worth $9,000 taken from their Deposit 8. On Jan-28 Our Business paid Dividends of $8,000 with Checks to the Shareholders. 9. On Jan-31 Our Business made an adjusting entry to record ONE month of Insurance Used for this Month. 10. On Jan-31 Our Business made an adjusting entry to record ONE month of Depreciation on the Equipment 11. On Jan-31 Our Business made an adjusting entry to record Income Tax Expense Payable based on 44% Tax Rate.

Answer 1

Ending Balance Customer Deposit 11,000 Prepaid Account 15,000 NBV of Equipment 262,900 Ending Cash balance 12,000 Net Income (after taxes) 28,000 Retained Earnings 20,000 Total assets 329,900 Total Liabilities 276,900 Owner's Equity 53,000 Total Liabilities + Equity 329,900 Working notes: Balance Sheet Income Statement Assets Accounts Receivable Prepaid Liabilities Note Payable Cash Salaries tax payable Buildings Unearned revenue Owners' Equity Owners' Retained Equity Earnings $33,000 $0 Revenue - Expenses $18,000 $33,000 $18,000 -$30,000 $20,000 $264,000 $234,000 $20,000 $9,900 -$9,900 Salary $15,000 $40,000 1 Jan 1 2 Jan 2 3 Jan 3 4 Jan 4 5 Jan 25 6 Jan 26 7 Jan 27 8 Jan 28 9 Jan 31 10 Jan 31 11 Jan 31 Total -$9,000 -$8,000 $9,900 $55,000 $55,000 $9,000 $9,000 -$8,000 -$3,000 -$1,100 -$22,000 $20,000 $64,000 -$3,000 -$1,1001 -$3,000 Insurance -$1,100 Depreciation -$22,000 -$36,000 $22,000 $31,900 $12,000 $40,000 $15,000 $262,900 $234,000 $11,000 $33,000 Income Statement Expenses Taxable income Tax at 44% Net Income $64,000 $14,000 $50,000 $22,000 $28,000