6.. | Account Title | Debit | Credit |
a. | Land | 50000 | |
Cash | 50000 | ||
b. | Cash | 6000 | |
Unearned revenues | 6000 | ||
(12000*50%) | |||
c. | Inventory | 1850 | |
Accounts payable | 1850 | ||
d. | Prepaid insurance | 1600 | |
Cash | 1600 | ||
e. | Rent expense | 600 | |
Cash | 600 | ||
f. | Building site | 120000 | |
Cash | 60000 | ||
Notes payable | 60000 | ||
g. | Cash | 5000 | |
Sales revenue | 5000 |
7. Hog & Bones Steakhouse | ||
A.Trial balance as at June 30, 2020 | ||
Account titles | Debit | Credit |
Cash | 25000 | |
Receivables | 9000 | |
Prepaid rent | 4000 | |
Land | 50000 | |
Building | 180000 | |
Acc. Depn.-Bldg. | 20000 | |
China ,Glassware & Silver | 15000 | |
Acc. Depn.-China ,Glassware & Silver | 6000 | |
Franchise | 40000 | |
Accounts payable | 5000 | |
Unpaid Wages | 2500 | |
Mortgage payable | 100000 | |
Capital(Bal.fig.) | 168500 | |
Withdrawals | 24000 | |
Food sales | 80000 | |
Beverage sales | 60000 | |
Cost of food used (incl.employee meals of $ 2000) | 30000 | |
Cost of beverage used | 20000 | |
Wages | 20000 | |
Employee benefits | 6000 | |
Insurance expense | 3000 | |
Other operating expenses | 7000 | |
Depn. Exp.-Bldg. | 7000 | |
Depn. Exp.-China ,Glassware & Silver | 2000 | |
Totals | 442000 | 442000 |
B.Income statement | ||
For the year ended June 30, 2020 | ||
Food sales | 80000 | |
Beverage sales | 60000 | |
Total sales revenues | 140000 | |
Cost of food used (30000-2000) | 28000 | |
Cost of beverage used | 20000 | |
Total cost of sales | -48000 | |
Gross profit | 92000 | |
Operating expenses: | ||
Wages | 20000 | |
Employee benefits(6000+2000) | 8000 | |
Insurance expense | 3000 | |
Other operating expenses | 7000 | |
Depn. Exp.-Bldg. | 7000 | |
Depn. Exp.-China ,Glassware & Silver | 2000 | -47000 |
Net income | 45000 |
C.Classified Balance sheet | ||
As at June 30, 2020 | ||
Cash | 25000 | |
Receivables | 9000 | |
Prepaid rent | 4000 | |
Total current assets | 38000 | |
Land | 50000 | |
Building | 180000 | |
Acc. Depn.-Bldg. | -20000 | |
Buildings, net | 160000 | |
China ,Glassware & Silver | 15000 | |
Acc. Depn.-China ,Glassware & Silver | -6000 | |
China Glassware & Silver, net | 9000 | |
Total non-current assets | 219000 | |
Franchise | 40000 | |
Total assets | 297000 | |
Liabilities & Owners' Equity | ||
Accounts payable | 5000 | |
Unpaid Wages | 2500 | |
Total current liabilities | 7500 | |
Mortgage payable | 100000 | |
Total liabilities | 107500 | |
Owners' equity | ||
Capital | 168500 | |
Withdrawals | -24000 | |
Retained Earnings | 45000 | |
Total owners' Equity | 189500 | |
Total Liabilities & Owners' Equity | 297000 |
C. 6. Journalise the following transactions: a. A restaurant purchased land for $50,000 for cash b....
Following information relates to Acco Co. a. Beginning cash balance on July 1: $50,000. b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), $1,720,000; June (actual), $1,200,000; and July (budgeted), $1,400,000. c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases...
Following information relates to Acco Co. Beginning cash balance on July 1: $50,000. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,720,000; June (actual), $1,200,000; and July (budgeted), $1,400,000. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June...
Following information relates to Acco Co. Beginning cash balance on July 1: $50,000. Cash receipts from sales: 27% is collected in the month of sale, 50% in the next month, and 23% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,720,000; June (actual), $1,200,000; and July (budgeted), $1,400,000. Payments on merchandise purchases: 54% in the month of purchase and 46% in the month following purchase. Purchases amounts are: June...
Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $155,000 cash, office equipment with a value of $5,700, and $74,000 of drafting equipment to launch the company. b. The company purchased land worth $58,000 for an office by paying $7,900 cash and signing a long-term note payable for $50,100. c. The company purchased a portable building with $52,000 cash and moved it onto the land acquired in b. d. The company paid...
Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $155,000 cash, office equipment with a value of $5,700, and $74,000 of drafting equipment to launch the company. b. The company purchased land worth $58,000 for an office by paying $7,900 cash and signing a long-term note payable for $50,100. c. The company purchased a portable building with $52,000 cash and moved it onto the land acquired in b. d. The company paid...
For sub-question 2, Please record transaction using T-account For sub-question 3, follow the format of exhibit 8 Thanks a lot for your answer, if you can, plz type the answer. Problem 16 Paul Olivia opened a pizza business under the name of Olivia's Pizza Parlor, and during the first week completed the following transactions: a. Invested cash of $2,000 and the following assets at their fair market values: furniture, $2,000; equipment, $3,000; and building, $8,000. b. Purchased food and beverages...
Question Adjusted Trial Balance Aune 2019 Helix 68,000 Cost of Sales Wapes Payable Depreciation expense- Building Accounts Receivable CA Electricity expense Ex Accumulated Depreciation. Delivery Vehicles 8.000 6,500 159,000 45,000 Capital DE Sales Revenue una Loan Payable UL Prepaid Insurance A Inventory CA Bank deposit (matures 1/8/19) (14 Depreciation expense-Delivery Vehicles o Total 9,900 37,000 4,000 422,260 Required: Prepare an income statement for the year ended 30 June 2019 Prepare a balance sheet sit would appear on 30 June 2019,...
Cullumber purchased land and a building on April for 398,400. The company paid 123,600 in cash and signed a 5% note payable Problem 9-6A Cullumber Company purchased land and a building on April 1, 2019, for $398,400. The company paid $123,600 in cash and signed a 5 % note payable for the balance. At that time, it was estimated that the land was worth $159,000 and the building, $239,400. The building was estimated to have a 25-year useful life with...
I have some wrong answers, please correct this. Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700. c. The company purchased a portable building with $55,000 cash...
Aracel Engineering completed the following transactions in the month of June. Jenna Aracel, the owner, invested $230,000 cash, office equipment with a value of $6,300, and $60,000 of drafting equipment to launch the company in exchange for common stock. The company purchased land worth $56,000 for an office by paying $7,500 cash and signing a long-term note payable for $48,500. The company purchased a portable building with $59,000 cash and moved it onto the land acquired in b. The company...