Reference no: EM131259501
Comprehensive problem including depreciation (Appendix)
Bower Consulting Company started the period with cash of $25,000, common stock of $13,000, and retained earnings of $12,000. Bower engaged in the following transactions in 2016:
Transactions during 2016
1. On January 1, 2016, purchased office furniture for $12,000.
2. On March 1, paid $5,400 for an insurance policy that provides coverage for 12 months beginning immediately.
3. Purchased $1,800 of supplies for cash.
4. Provided $39,000 of services for cash.
5. Paid $9,000 for salaries expense.
6. On April 1, received $12,000 for services that will be performed over the next 12 months beginning immediately.
Information for Adjusting Entries
7. The furniture had an estimated life of four years and a $2,000 salvage value. 8. Recognized the expired insurance.
9. An inventory of supplies showed $250 of supplies on hand as of December 31. 10. Recognized the revenue associated with Event 6 as of December 31. Required
a. Record the 10 events in general journal format.
b. Prepare an income statement, balance sheet, and statement of cash flows.
|
Its investment in clor confectionary under the equity method
: Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,000 and $165,850 at December 31 of 2012 and 2013, respectively. During 2013 Clor recognized $75,500 of net inc..
|
|
What are the potential ethical implications of transactions
: Bobby’s Bagels, a publicly traded corporation whose common stock is listed on a stock exchange, just landed a contract to open 100 new stores in shopping malls across the country. The new business should triple the company’s profits. What are the pot..
|
|
Current years charitable contribution deduction
: Jorge contributes $35,000to his church and 100 share of XYZ stock to the American Red Cross. The shares were purchased three years ago for $10,000 but were worth $ 18,000 as of the donation date. Jorge's AGI this year is $100,00. Assuming no election..
|
|
Journalize in single entry interest expense
: How much was Amazon’s long-term debt at December 31, 2009? Of this amount, how much was due within one year? How much was payable beyond one year in the future? Journalize in a single entry Amazon’s interest expense for 2009. Amazon paid cash of $32 ..
|
|
Balance sheet and statement of cash flows
: Bower Consulting Company started the period with cash of $25,000, common stock of $13,000, and retained earnings of $12,000. Bower engaged in the following transactions in 2016: An inventory of supplies showed $250 of supplies on hand as of December ..
|
|
Pay back the initial project investment
: Your company has the opportunity to invest $75,000 in a new project opportunity but due to cash flow concerns, your boss wants to know when you can pay back the original investment. Calculate how long it should take to pay back the initial project in..
|
|
What price per unit would have been charged to the customer
: Job 412 was one of the many jobs started and completed during the year. The job required $9,000 in direct materials and 40 hours of direct labor time at a total direct labor cost of $9,900. If the job contained four units and the company billed at 60..
|
|
Compute garys tax due or refund due
: During 2016, Gary earned $57,000 as an executive. Gary, who is single, supported his half sister, who lives in a nursing home. Gary received the following interest: $400 on City of Los Angeles bonds, $200 on a money market account, and $2,100 on a lo..
|