Record in general journal format the adjustment

Assignment Help Accounting Basics
Reference no: EM13914778

Washington Mining began operations by issuing common stock for $150,000. The company paid $135,000 cash in advance for a one-year contract to lease machinery for the business. The lease agreement was signed on March 1, 2013 and was effective immediately. Washington Mining received $172,500 of cash revenue in 2013. 

Required

a. Record the March 1 cash payment in general journal format. 

b. Record in general journal format the adjustment required as of December 31, 2013. 

c. Record all 2013 events in a horizontal statements model like the following one: 

1958_264-B-A-D-E-F (65).png

d. What amount of net income would Washington Mining report on the 2013 income statement? What is the amount of net cash flow from operating activities for 2013? 

e. Determine the amount of prepaid rent Washington Mining would report on the December 31, 2013, balancesheet.

Reference no: EM13914778

Questions Cloud

Based on the CAPM-What is the risk-free rate : Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?
Creating a website which showcases the program skills : For your Project, you will create a website that showcases the skills you have gained throughout your psychology program. Your website will consist of the following elements:
Notable pre-war era politicians or social figures : Pick one of the notable pre-war era politicians or social figures addressed in the lecture, and assume their position and beliefs. After introducing yourself as your selected figure, choose two issues of note presented in this unit (1820-1861),
Determine present value of interest tax shield : Primary Health Care is one of Australia’s leading listed healthcare companies. Primary is a service company to medical and allied health professionals. Primary’s marginal corporate tax rate is 30%. Assume that the marginal personal tax rate on income..
Record in general journal format the adjustment : Washington Mining began operations by issuing common stock for $150,000. The company paid $135,000 cash in advance for a one-year contract to lease machinery for the business. The lease agreement was signed on March 1, 2013 and was effective immediat..
Prepare journal entries to record the estimated liability : Prepare journal entries to record the estimated liability for product warranties during the month and the clocks replaced under warranty during the month.
How much money can you get by selling your rights : Roth Corp. wants to raise $3.8 million via a rights offering. The company currently has 480,000 shares of common stock outstanding that sell for $35 per share. Its underwriter has set a subscription price of $25 per share and will charge the company ..
The following events apply to computer services : The following events apply to Computer Services Inc. in its first year of operation:
Provide policy suggestions to improve water quality levels : Visit the Web site at www.epa.gov/waters/ 305b/index.html, and select a state in the nation. Write a one-page summary of the surface water and groundwater quality in that state. Provide some policy suggestions to improve water quality levels. Be s..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Pros and cons of segregation of duties over cash

What are some internal controls related to cash? Why is control over cash important? What are the pros and cons of segregation of duties over cash? Why is a bank reconciliation considered an internal control over cash? How does it provide control?..

  What is the total amount of pitts inventory

At the end of the year, a physical inventory showed it had ending inventory of $140,000. Calculate Reid & Company's cost of goods sold for the year and what is the total amount of Pitts' inventory at year end?

  Current year tax return

Kendra is a self-employed taxpayer working exclusively from her home office. Before the home office deduction, Kendra has $5,000 of net income. Her allocable home expenses are $10,000 in total. How are the home office expenses treated on her curre..

  Should the controller be concerned with cypress companys

cypress company is a subsidiary of peppermint corp. the controller of cypress believes that the yearly allowance for

  An s corporation shareholder

An S corporation shareholder is currently in the 28 percent tax bracket

  Auditor at local firm when composing the letter

Draft a letter to Apollo Shoes that addresses the following key points; assume the role of an auditor at a local firm when composing the letter.

  Exchange treatment affect eleanors capital gain

I know that Eleanor will have a capital gain...but how does having the transaction qualify or not qualify for sale or exchange treatment affect Eleanor's capital gain?

  Dicenta corporation reported net income of 283000 in 2012

dicenta corporation reported net income of 283000 in 2012 and had 50000 shares of common stock outstanding throughout

  The fasb was influenced by feedback from interested parties

the fasb was influenced by feedback from interested parties when pension accounting rules were developed. please cite

  After 20 years of working for other firms penelope enrolled

after 20 years of working for other firms penelope enrolled agent age 41 mark cpa age 43 and john cva age 65 want to

  Identify most sold bread type

Part 1. Identify most sold bread type Part 2. Determine which bread gives you most revenue

  Prepares its financial statements under us gaap

Heva Company is an American company that prepares its financial statements under US GAAP. In 2014, the company reported income of $5,000,000 with stockholders' equity of $40,000,000 on December 31, 2014. Prepare the reconciliation schedule to c..

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