Prepare a summary of transactions for the company

Assignment Help Accounting Basics
Reference no: EM131308979

Preston Auto Paint Company had the temporary free use of an old building and completed the following transactions in September 2010:

Sept. 1 The company was organized and received USD 100,000 cash from the issuance of capital stock.

5 The company bought painting and sanding equipment for cash at a cost of USD 25,000.

7 The company painted the auto fleet of a customer who agreed to pay USD 8,000 in one week. The customer furnished the special paint.

14 The company received the USD 8,000 from the transaction of September 7.

20 Additional sanding equipment that cost USD 2,800 was acquired today; payment was postponed until September 28.

28 USD 2,400 was paid on the liability incurred on September 20.

30 Employee salaries for the month, USD 2,200, were paid.

30 Placed an order for additional painting equipment advertised at USD 20,000.

Prepare a summary of transactions for the company for these transactions. Use money columns headed Cash, Accounts Receivable, Equipment, Accounts Payable, Capital Stock, and Retained Earnings.

Determine balances after each transaction to show that the basic accounting equation balances.

Prepare journal entries to record each of the following transactions for Sanchez Company. Use the letter of the transaction in place of the date. Include an explanation for each entry.

a. Capital stock was issued for cash, USD 300,000.

b. Purchased trucks by signing a note bearing no interest, USD 210,000.

c. Earned service revenue on account, USD 4,800.

d. Collected the account receivable resulting from transaction (c), USD 4,800.

e. Paid the note payable for the trucks purchased, USD 210,000.

f. Paid utilities for the month in the amount of USD 1,800.

g. Paid salaries for the month in the amount of USD 7,500.

h. Incurred supplies expenses on account in the amount of USD 1,920.

i. Purchased another truck for cash, USD 48,000.

j. Performed delivery services on account, USD 24,000.

Reference no: EM131308979

Questions Cloud

Sales using regression to estimate trend : Suppose a firm has had the following historic sales figures. Year: 2009 2010 2011 2012 2013 Sales $ 2,540,000 $ 3,670,000 $ 4,480,000 $ 4,900,000 $ 5,580,000 What would be the forecast for next year’s sales using regression to estimate a trend? Next ..
Effective tool to promote expansion than fiscal policy : These conditions suggest that monetary policy is likely to be a more effective tool to promote expansion than fiscal policy. Do you agree or disagree? Explain your answer.
Constant growth valuation : Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $18 a share. The stock just paid a dividend of $3.25 a share (i.e., D0 = $3.25), and the dividend is expected to grow forever at a constant rate of 5% a year. What stock pric..
Implement a hash structure for the contributor data : At this point, you decide to implement a Hash structure for the contributor data to prepare for searches. You will read the contributor information from a file provided; it is a comma delimited (CSV) file.
Prepare a summary of transactions for the company : Prepare a summary of transactions for the company for these transactions. Use money columns headed Cash, Accounts Receivable, Equipment, Accounts Payable, Capital Stock, and Retained Earnings
What is the effective annual rate of this credit offer : Round House Furniture offers credit to its customers at a rate of 1.15 percent per month. What is the effective annual rate of this credit offer? City Motors will sell a $15,000 car for $345 a month for 52 months. What is the interest rate?
Solicitation number and contract award : Once in the website, you will enter your search criteria for the state and type field for a solicitation (either pre-solicitation or Combined Synopsis/Solicitation). Include the Solicitation Number and Contract Award date in your proposal title pa..
Explain the methods the company uses : Name a current advertising slogan you believe is particularly effective for developing a unique selling proposition. Explain the methods the company uses, the target market, and strategies that you think are effective in advertising this product. ..
Create sortedlist object reference : Create SortedList object reference. Your insert and delete methods should work properly in all possible scenarios: inserting in an empty list

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Show how high performance would report receivables

Show how High Performance would report receivables on its balance sheet after all entries have been posted.

  Where hundreds or thousands of parts

where hundreds or thousands of parts must be purchased to manufacture cars. Briefly describe how EDI would be beneficial in this industry.

  Problem regarding the advertised proportions

a) If the M&M's are packaged in the advertised proportions, how many of each color should the author have ex- pected in his bag of M&M's? b) To see if his bag was unusual, should he test goodness- of-fit, homogeneity, or independence?

  Prior to recording adjusting entries the office supplies

prior to recording adjusting entries the office supplies account had a 359 debit balance. a physical count of the

  The normal unit sales price per unit is 55 a special order

a companys unit costs based on 100000 units arevariable costs 25fixed costs 10the normal unit sales price per unit is

  What is the net income or loss if a companys total assets

what is the net income or loss if a companys total assets at begining of year are 400000 and 675000 at end of year and

  Compute the earnings per share on common stock

Compute the earnings per share on common stock for the current year as it should be reported to stockholders.

  Corporate culture at southwest airlines

Southwest airlines began in 1966 by Herb Kelleher. His vision was to run a low cost customer friendly airline. Originally, his customer base was to be business class men in the Texas area. Even today, the vision and culture remains the same: Lo..

  Income before interest and taxes is expected to be 3500000

martin corporation is considering two alternatives to finance its purchase of a new 4000000 office building.a issue

  Calculate the increase or decrease in profits

Calculate the increase or decrease in profits for the three divisions and the company as a whole (four separate computations) if the agreement is enforced. Explain your thought process, comment on the situation, and make a suggestion based on t..

  Unit cost for the direct materials

What is the unit cost for the direct materials for 19x1, assuming direct materials cost is for the production of 507,000 units? A. $3.20 b. $3.80 c. $4.00 d. $4.32 128.

  For a two sample confidence interval

The Chi-square test results having expected values of less than 5 in a cell may produce a greater likelihood of having type I errors (wrongly rejecting the null hypothesis).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd