FA2 Project June 1 The company received cash of $35,000 and issued common stock to the shareholders. 2
Posted: Mon May 02, 2022 6:58 am
FA2 Project
June
1 The company received
cash of $35,000 and issued common stock to the shareholders.
2
Borrowed $20,000 from the bank and signed a long-term note
payable.
8
Purchased equipment with a short-term note payable for $10,000.
9
Performed services billed at $3,000 and received cash of
$3,000.
10 Performed
services for a client on account, $6,500.
12 Employees
worked two weeks and were paid salaries of $1,000.
15 Paid the
short-term note payable from the June 8 purchase.
22 Purchased
office supplies on account for $7,000.
30 Paid amount
due for office supplies.
30 Paid June's
monthly rent of $500.
30 Paid the
monthly income taxes of $2,200.
30 The Board of
Directors declared and paid dividends of $1,000.
Required:
2. Prepare a
single-step income statement for the first month of operations.
Include a proper heading.
3. Prepare a
statement of retained earnings for the first month of operations.
Include a proper heading.
4. Prepare the balance sheet with
proper heading.
5. Prepare closing entries.
2. The Schauer Company had the following adjustments at December
31, 2019, the end of the accounting period:
A. The Schauer Company uses straight-line depreciation for its
equipment. The cost of the equipment is $105,000 and the useful
life is 5 years. The equipment was purchased on January 1, 2019 and
has no residual value.
B. Accrued interest of $10,000 on a note receivable will
be received in January.
C. On November 1, 2019, the Schauer Company paid $3,000
for six months of rent in advance. The rental period is November 1,
2019 through April 30, 2020.
D. On August 1, 2019, the company collected $24,000 in advance
for a consulting contract, which is to be earned evenly over the
next 24 months.
E. Employees are owed salaries for 3 days of a 5-day
workweek; weekly payroll is $30,000.
F. The unadjusted balance of the supplies account is
$2,750. Based on a physical count, the cost of supplies on hand is
$1,000.
G. The company has incurred interest expense of $1,000 that will
be paid in January.
Required:
1. Journalize the adjusting entries. Explanations are not
required.
June
1 The company received
cash of $35,000 and issued common stock to the shareholders.
2
Borrowed $20,000 from the bank and signed a long-term note
payable.
8
Purchased equipment with a short-term note payable for $10,000.
9
Performed services billed at $3,000 and received cash of
$3,000.
10 Performed
services for a client on account, $6,500.
12 Employees
worked two weeks and were paid salaries of $1,000.
15 Paid the
short-term note payable from the June 8 purchase.
22 Purchased
office supplies on account for $7,000.
30 Paid amount
due for office supplies.
30 Paid June's
monthly rent of $500.
30 Paid the
monthly income taxes of $2,200.
30 The Board of
Directors declared and paid dividends of $1,000.
Required:
2. Prepare a
single-step income statement for the first month of operations.
Include a proper heading.
3. Prepare a
statement of retained earnings for the first month of operations.
Include a proper heading.
4. Prepare the balance sheet with
proper heading.
5. Prepare closing entries.
2. The Schauer Company had the following adjustments at December
31, 2019, the end of the accounting period:
A. The Schauer Company uses straight-line depreciation for its
equipment. The cost of the equipment is $105,000 and the useful
life is 5 years. The equipment was purchased on January 1, 2019 and
has no residual value.
B. Accrued interest of $10,000 on a note receivable will
be received in January.
C. On November 1, 2019, the Schauer Company paid $3,000
for six months of rent in advance. The rental period is November 1,
2019 through April 30, 2020.
D. On August 1, 2019, the company collected $24,000 in advance
for a consulting contract, which is to be earned evenly over the
next 24 months.
E. Employees are owed salaries for 3 days of a 5-day
workweek; weekly payroll is $30,000.
F. The unadjusted balance of the supplies account is
$2,750. Based on a physical count, the cost of supplies on hand is
$1,000.
G. The company has incurred interest expense of $1,000 that will
be paid in January.
Required:
1. Journalize the adjusting entries. Explanations are not
required.