Nov. 1 Issued 10,000 shares of $10 par value common stock in exchange for an ini

Question

Nov. 1 Issued 10,000 shares of $10 par value common stock in exchange for an initial investment of $100,000 by the firm's owners

Nov. 1 Prepaid $1,800 for a one-year insurace policy

Nov. 3 Issued 1,500 shares of $10 par value common stock for office equipment with a fair market value of $15,000. (The Office Equipment will be depreciated on a straight line basis over 10 years with a $3,000 residual value).

Nov. 4 Borrowed 20,000 by issuing a four-year 6% notes payable. The note called for a $5,000 annual installment payments plus interest. Record the short-term and long-term portions of the note payable in two separate accounts.

Nov. 5 Purchased Land and a Building for $90,000 cash. The Building had a fair market value of $80,000 and the Land had a fair market value of $10,000. (The Building will be depreciated on a straight line basis over 20 years with an $8,000 residual value.)

Nov. 6 Purchased $10,000 worth of Office Supplies on account from Kilcoyne Office Supply.

Nov. 7 Established a petty cash fund of $400

Nov. 8 Paid $2,400 cash for an order with a local newspaper for advertising that begins on November 15 and will run for three months. The advertising was paid for on this date to obtain a lower price.

Nov. 11 Completed services for several clients and received $10,000

Nov. 12 Completed services for customers and billed them for $12,000

Nov. 15 Paid the semi-montly payroll of $8,000 to the firm's part time consultants, all of which are classified as independent contractors.

Nov. 16 Received $9,000 in advance for services to be provided from November 16 through February 15. (Three months)

Nov. 16 A client billed on November 12 indicated that a $2,000 receivable due Bayou Computer Services Enterprises would not be paid for 90 days. Bayou Computer Services accepted a 12% 90 Day notes receivable on this date.

Nov. 17 Declared a cash divident of %.50 per share on this date Payable on December 16.

Nov. 18 Paid cash to Kilcoyne Office Supply $2,500, on the November 06 account balance.

Nov. 29 Received and paid the November telephone bill of $500.

Nov. 30 Collected $3,000 of the receivable recorded on November 14.

Nov. 30 Paid cash, $1,500, for various utility bills received for November.

Nov. 30 Recorded services rendered to clients during the lat half of November that totaled $20,000. The firm collected $15,000 in cash with the balance due in 30 days.

Nov. 30 Record the entry to replenish the petty cash fund. An audit of the petty cash fudn determined the following:

Petty cash tickets:

Postage $50

Freight-Out $150

Repair Expense $60

Miscellaneous Expense $85

Currency and Coins in Petty Cash $40

Explanation / Answer

1Nov 20xx InvestmentA/C Dr 100,000 Common Stock Cr 100,000 (Issued 10,000 shares of $10 par value common stock in exchange for an initial investment of $100,000 by the firm's owners) 1 Nov 20xx PrePaid Insurance A/C Dr 1800 Cash Cr 1800 (Prepaid $1,800 for a one-year insurace policy) 3 Nov 20xx Office Eqpt A/C Dr 15000 Common Stock A/C Cr 15000 (Issued 1,500 shares of $10 par value common stock for office equipment with a fair market value of $15,000). 4 Nov 20xx Cash Dr 20,000 Note Payable Cr 20,000 (Borrowed 20,000 by issuing a four-year 6% notes payable) 5 Nov20xx Land A/C Dr 10,000 Building A/C Dr 90,000 Cash Cr 90,000 (Purchased Land 10000 and a Building 80000 for $90,000 cash) 6 Nov 20xx Office Supplies A/C Dr 10000 Acct Payable Cr 10,000 (Purchased $10,000 worth of Office Supplies on account from Kilcoyne Office Supply) 7 Nov20xx Petty Fund A/c Dr 400 Cash Cr 400 (Established a petty cash fund of $400) 8 Nov20xx Advt A/C Dr 2400 Cash Cr 2400 (Paid $2,400 cash for an order with a local newspaper for advertising) 11Nov20xx Cash Cr 10,000 Services Revenue A/C Cr 10,000 (Completed services for several clients and received $10,000) 12 Nov 20xx Acct Rxable Dr 12000 Services Rev A/C Cr 12,000 (Completed services for customers and billed them for $12,000) 15 Nov 20xx Payroll A/C Dr 8000 Cash Cr 8000 (Paid the semi-montly payroll of $8,000 to the firm's part time consultants, all of which are classified as independent contractors.) 16 Nov20xx Cash Dr 9000 Adv for Services A/C Cr 9000 (Received $9,000 in advance for services to be provided from November 16 through February 15) 16 Nov20xx Note Rxable A/C Dr 2000 Sevices Rev A/C Cr 2000 (A client billed on November 12 indicated that a $2,000 receivable due Bayou Computer Services Enterprises would not be paid for 90 days. Bayou Computer Services accepted a 12% 90 Day notes receivable on this date.) 17 Nov20xx Cash Dividend Dr $5,750 DIvidend Payable Cr $5,750 (Declared a cash divident of %.50 per share ie $10*115000*0.5% = $5,750) 18 Nov20xx Acct Payable Dr 2500 Cash Cr 2500 (Paid cash to Kilcoyne Office Supply $2,500) 29 Nov20xx Tel Exp Dr 500 Cash Cr 500 (Received and paid the November telephone bill of $500) 30 Nov 20xx Cash Dr 3000 Acct Rxable Cr 3000 (Collected $3,000 of the receivable recorded on November 14) 30 Nov20xx Utility exp Dr 1500 Cash Cr 1500 (Paid cash, $1,500, for various utility bills received for November) 30 Nov20xx Cash Dr 15000 Acct Rxable Dr 5000 Services Rev A/C Cr 20000 (Recorded services rendered to clients totaled $20,000. The firm collected $15,000 in cash with the balance due in 30 days.) 30 Nov 20xx Postage Dr $50 Freight-Out Dr $150 Repair Expense Dr $60 Miscellaneous Expense Dr $85 Cash Short Dr 15 Cash Cr 360 (Record the entry to replenish the petty cash fund)

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.