1/1 An Investor acquired 100% of Crazy’s stock with an
investment of 5400.000 cash. Par value of stock was 100.00/share
and a thousand shares were sold
1/1 Crazy borrowed $250,000 cash by issuing a 3-year note with a
stated interest rate of 10% per year. To be compounded annually.
The interest xviii be paid on January 1 of each year (starting next
year); and the principal will be paid on maturity
1/2 Prepaid a year’s rent for $24,000 (cash) for the current year.
The first month’s rent was due 1/1 for January
1/15 Purchased with cash - office equipment for $36,000 and
supplies for $18,000
2/7 Received $250,000 cash for consulting, services to be performed
in the future for client “X”
3/1 Started up a second line of consulting services. During the
year thic nperntinnc will be discontinued. Sold consulting services
valued at $200,000 for the year. We incurred misc. expenses of
$50,000. This summarizes all revenues and expenses for this
business. There are no other transactions for this business.
7/1 Prepaid $24,000 cash for a 12-month insurance policy (starting
on 7/1)
9/12 Purchased 55,000 more of supplies on credit
9/16 Provided consulting services of $80,000 on aedit to client
“Y”.
10/1 Purchased $10,000 (with cash) of an investment in another
company’s (Pear Inc.) stock. Not considered by our management as a
trading stock. Issued 200 additional shares of our common stock for
$100,000 cash
10/20 Collected $5,000 from client “Y”. Sold $50,000 of future
services — receiving a cash deposit) to Client “ZA”.
90% of the services are performed by year-end.
12/1 Decided to sell second line of consulting business. Found a
buyer for second line of consulting services. Sold the business in
exchange for $40,000 worth of equipment; which resulted in a gain
of $40,000.
12/15 Paid down the payable (supplies) with a $1,000 cash payment.
Received $10,000 cash from Client “ZA”
12/31 Counted supplies and determined that $5,000 of supplies were
still on hand
12/31 Salaries paid throughout the year: $50,000. Current salaries
to be paid on 1/3. The total amount unpaid at
21/31 is $5,000.
12/31 Determined appropriate total depreciation is $10,000
12/31 Determined that there is still about $10,000 to do for client
X
12/31 Determined that the stock purchased on 10/1 was now only
worth $8,000. However, the stock was not sold.
12/31 We declared and paid a dividend of $10,000
12/31 Determined we paid and incurred $5,000 in restructuring
expenses related to discontinued operations
12/31 We received cash of $1,000 in dividends from Pear Inc.
Tax Rate is 30% (none of the tax is paid, but it is accrued as a
liability)
1. Prepare a Balance Sheet in good form for 12/31/2015. Prepare
closing entries
1/1 An Investor acquired 100% of Crazy’s stock with an investment of 5400.000 cash. Par value...
Prepare JEs and Adjusting (AJEs). I prepared Both journal entries and some Adjusted Entries have been prepared. I wasn't sure how to adjust the journal entry for 1/15 and others. My professor doesn't explain anything, and well this is why im here. Prepare Income Statement (including OCI) and a Balance Sheet in Good form for 12/31/X1. Prepare closing entries. (if u can show with steps how to do the income statement, balance sheet and closing entries.) Assume cash transaction in...
3. On March 1, 2019 - An investor purchased 100 shares of stock (100%) from ABC Co. for $1,500,000 cash. The par value of the stock was $1/share. ABC Company purchased equipment for $90,000; paying $40,000 and financing through a long-term note) the remaining portion. The note charges 12% (APR) interest ABC had the following transactions after 3/1/2019: Sold and delivered services for $820,000. $460,000 cash was received immediately and the remaining amounts will be received in 2020. ABC was...
3. On March 1, 2019 – An investor purchased 100 shares of stock (100%) from ABC Co. for $1,500,000 cash. The par value of the stock was $1/share. ABC Company purchased equipment for $90,000; paying $40,000 and financing (through a long-term note) the remaining portion. The note charges 12% (APR) interest. ABC had the following transactions after 3/1/2019: Sold and delivered services for $820,000. $460,000 cash was received immediately and the remaining amounts will be received in 2020. ABC was...
On October 1, 2017 – An investor purchased 20 shares of stock (100%) from ABC Co. for $800,000 CASH. The par value of the stock was $5,000/share. ABC Company purchased equipment for $90,000; paying $40,000 and financing (through a long-term note) the remaining portion. ABC had the following transactions after 10/1/2017: Sold and delivered services for $320,000. $80,000 of cash was received immediately and the remaining amounts will be received in 2018 ABC was given in cash $10,000 for future...
3. On March 1, 2019 - An investor purchased 100 shares of stock (100%) from ABC Co. for $1.500,000 cash. The par value of the stock was $1/share. ABC Company purchased equipment for $90,000; paying $40,000 and financing (through a long-term note) the remaining portion. The note charges 12% (APR) interest. ABC had the following transactions after 3/1/2019: Sold and delivered services for $820,000. $460,000 cash was received immediately and the remaining amounts will be received in 2020. ABC was...
NewCo sold 100,000 shares of stock (par value 1.00) for $800,000. Purchased machinery for $75,000 signing a long-term note on 3/1 with an interest rate of 5%. Depreciation for the year is $7,000. On 9/1 purchased a year’s worth of rent in advance for $24,000. On 9/1 purchased $20,000 worth of supplies with cash. At the end of the year it was determined that only $5,000 worth of supplies remained. Newco sold and delivered services for $200,000 on account. Newco...
show calculations (excel) On October 1, 2018 - ABC sold 1,000 shares of stock (100%) of ABC Co. for $3,500,000. The $3,500,000 was paid directly to ABC in exchange for ABC common stock. The par value of the stock was $1,500/share. ABC Company purchased equipment for $300,000; paying $120,000 cash and financing (through a long-term note) the remaining portion. The interest rate is 5% payable on January 1" of each subsequent year. ABC Company prepaid a year's (12months) worth of...
July 1 Acquired $28,000 cash by issuing common stock. July 2 Paid $6,600 cash in advance for a one-year lease on an office. July 2 Borrowed $18,000 from National Bank by signing a two-year note with interest at 9% per year. The principal and interest will be repaid on July 1, 2021. July 3 Paid $14,400 cash for office equipment with a useful life of 5 years and no salvage value. July 4 Paid $300 cash for a one-year insurance...
On 1/1 ABC issued 100,000 shares of 2.00 par stock for $2,000,000 in cash. On 3/1 ABC Prepaid a year’s worth of rent. The rent is $3,000 per month. During the year - ABC purchased the following inventory items in the following order: 20,000 units at $1.00/per unit. 30,000 units at $1.50/unit. 50,000 units at $1.75/unit; and 30,000 units at $2.00/unit. These purchases were made on account. On 4/1 ABC purchased equipment for $100,000 signing a 5% note. Interest only...
July 1 Acquired $28,000 cash by issuing common stock. July 2 Paid $6,600 cash in advance for a one-year lease on an office. July 2 Borrowed $18,000 from National Bank by signing a two-year note with interest at 9% per year. The principal and interest will be repaid on July 1, 2021. July 3 Paid $14,400 cash for office equipment with a useful life of 5 years and no salvage value. July 4 Paid $300 cash for a one-year insurance...