1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aivan3 [116]
3 years ago
11

Issued 30,000 shares of common stock in exchange for $300,000 in cash. Purchased equipment at a cost of $40,000. $10,000 cash wa

s paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. Paid $5,000 in rent on the warehouse building for the month of March. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $70,000 on account for the merchandise purchased in 3. Collected $55,000 from customers on account. Recorded depreciation expense of $1,000 for the month on the equipment. Post the above transactions to the below T-accounts.
Business
1 answer:
hichkok12 [17]3 years ago
5 0

Answer:

T-accounts:

Cash

Accounts Titles             Debit       Credit

Common Stock         $300,000

Equipment                                       $10,000

Rent Expense                                     5,000

Prepaid Insurance                              6,000

Accounts Payable                            70,000

Accounts Receivable  55,000

Equipment

Accounts Titles             Debit       Credit

Cash                           $10,000

Notes Payable             30,000

Notes Payable

Accounts Titles             Debit       Credit

Equipment                                  $30,000

Inventory

Accounts Titles             Debit       Credit

Accounts Payable      $90,000

Cost of Goods Sold                      $70,000

Accounts Payable

Accounts Titles             Debit       Credit

Inventory                                     $90,000

Cash                           $70,000

Accounts Receivable

Accounts Titles             Debit       Credit

Sales Revenue           $120,000

Sales Revenue

Accounts Titles             Debit       Credit

Accounts Receivable                  $120,000

Cost of Goods Sold

Accounts Titles             Debit       Credit

Inventory                   $70,000

Rent Expense

Accounts Titles             Debit       Credit

Cash                           $5,000

Prepaid Insurance

Accounts Titles             Debit       Credit

Cash                          $6,000

Common Stock

Accounts Titles             Debit       Credit

Cash                                             $300,000

Depreciation Expense

Accounts Titles              Debit       Credit

Acc Depreciation         $1,000

Accumulated Depreciation - Equipment

Accounts Titles             Debit       Credit

Depreciation Expense                   $1,000

Explanation:

T-account consists of the following.  An account title to record the corresponding account where the double-entry transaction is completed. A debit side on the left to enter the dollar value of the transaction, if the concerned account receives the value.  A credit side on the right, also, to enter the dollar value of the transaction, if the concerned account gives out the value.

You might be interested in
If you were interested in evaluating the profitability of a company and could have only limited historical data, would you prefe
Rudik [331]
I will prefer to know the OPERATING INCOME. Operating income refers to the operating profits of a company before the taxes and interests are removed. It reflects the true situation of the company and can be used to analyse if a company is making profits from its manufacturing process or not. The net income of a company has some expenses and costs that do not reflect the core operations of the company. 
5 0
3 years ago
A(n) ________________ is a number of currency units, shares, bushels, pounds, or other units specified in a derivative instrumen
LUCKY_DIMON [66]

Answer: notional

Explanation:

A notional amount also sometimes referred to as the face amount is a number of currency units, shares, bushels, pounds, or other units specified in a derivative instrument.

The effective notional amount had to do with the notional amount that has already been stated and further adjusted when the leverage factor is considered.

4 0
3 years ago
A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.
Natasha_Volkova [10]
I think it’s scheme
8 0
3 years ago
Economic activity in developing countries is limited at least in part due to limited investment. Investment is limited mostly du
Tpy6a [65]

Inflation is the economic condition in which the interest rate keeps increasing which is beneficial for the lenders. But not a fixed rate lender.

<h3 /><h3>What is Interest Rate?</h3>

Interest rate is the prevailing market rate which the lender of the money gets in return for the money provided as a loan.

If there is a fixed interest contract the lender will get the same percentage of return for the duration of contract, no matter the fluctuation of the interest rate in the market. This is not beneficial when the economy is facing inflation. As whatever be the rate in the market (definitely higher) the lender will get the same percentage of return.

However if there is a variable rate contract the rate is updated and the lender is paid at the updated interest rate. This is beneficial when the economy is facing inflation.

Learn more about interest rates at brainly.com/question/28142837

#SPJ1

4 0
1 year ago
Which word means a formal agreement between two or more governments?
katovenus [111]
A bilateral is a formal agreement between two or more governments!
5 0
3 years ago
Read 2 more answers
Other questions:
  • The following events occurred for Favata Company: Received $16,000 cash from owners and issued stock to them. Borrowed $13,000 c
    6·1 answer
  • Do you think college funding should be reduced to the humanities courses ?
    13·2 answers
  • When comparing two distributions, it would be best to use relative frequency histograms rather then frequency histograms when?
    11·1 answer
  • The reuse of one's previously published material in a new journal article is most appropriate if:
    7·1 answer
  • Allegheny Energy Supply Co. and Monogahela Power Co., a subsidiary, filed suit against Anker West Virginia Mining Co., later acq
    15·1 answer
  • Determine a distance from a given map on a map of 1:50000 and the ground distance=7.5km calculate the distance on the map in cen
    13·1 answer
  • Bakery a sells bread for $2 per loaf that costs $0.50 per loaf to make. bakery a gives a 70% discount for its bread at the end o
    11·1 answer
  • If the market for sport utility vehicles has excess supply, then one can say that: A. supply is greater than demand. B. quantity
    13·1 answer
  • Which market segmentation dimension describes consumers by the groups with which they associate?
    10·1 answer
  • Zina Balaskas (57) is single and earned $3,250 in wages. Because she has a large amount of investment income, she would like to
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!