Bindy Crawford created a corporation providing legal services, Larkspur Inc, on July 1, 2025. On July 31 the balance sheet showed Cash $5,200, Accounts Receivable $3,850, Supplies $840, Equipment $6,350, Accounts Payable $5,550, Common Stock $8,750, and Retained Earnings $1,940. During August, the following transactions occurred. Aug. 1 4 9 15 19 23 26 31 Collected $1,030 of accounts receivable due from customers. Paid $2,780 cash for accounts payable due. Performed services worth $5,610, of which $3,540 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,350, paying $440 in cash and the balance on account. Paid salaries $1,350, rent for August $650, and advertising expenses $300. Paid a cash dividend of $700. Borrowed $5,200 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420.

Bindy Crawford created a corporation providing legal services, Larkspur Inc, on July 1, 2025. On July 31 the balance sheet showed Cash $5,200, Accounts Receivable $3,850, Supplies $840, Equipment $6,350, Accounts Payable $5,550, Common Stock $8,750, and Retained Earnings $1,940. During August, the following transactions occurred. Aug. 1 4 9 15 19 23 26 31 Collected $1,030 of accounts receivable due from customers. Paid $2,780 cash for accounts payable due. Performed services worth $5,610, of which $3,540 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,350, paying $440 in cash and the balance on account. Paid salaries $1,350, rent for August $650, and advertising expenses $300. Paid a cash dividend of $700. Borrowed $5,200 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 59P

See similar textbooks

Similar questions

Samantha Company had the following account balances at the end of May of the current year: Cash P48,500; Trading Securities P32,800; Receivables P72,300; Inventories P37,490; Machinery & Equipment P678,100; Furniture & Fixtures P100,640; Prepayments P85,280; Building P700,200; Patents P76,460; Trademark P56,790; Accounts Payable P276,420; Unearned Revenues P54,750; Bonds Payable P290,000; Mortgage Payable P12,370; Accrued Expenses P7,890; Interest Income P32,000; Service Revenue P765,340. Compute for the capital
A corporation commences operations on January 1, 2019. It has the following account balances at December 31, 2019: Accounts Payable $2,500 Accounts Receivable 5,200 Advertising Expense 450 Cash 1,500 Common Stock 3,190 Interest Expense 400 Service Revenue 4,500 Supplies Expense 240 Unused Supplies 200 Wages Expense 2,200 Net assets total:
We-Sell Realty was organized as a corporation on August 1, 20Y7, by the issuance of common stock of $15,000. We-Sell Realty is owned and operated by Omar Farah, the sole stockholder. The following statements for We-Sell Realty were prepared after its first month of operations: We-Sell Realty Income Statement August 31, 20Y7 Sales commissions $ 140,000 Expenses: Office salaries expense Rent expense Automobile expense Miscellaneous expense $87,000 18,000 7,500 2,200 ..... Supplies expense Total expenses. 1,150 (115,850) $ 25,000 Net income . Omar Farah Statement of Stockholders' Equity For the Year Ended August 31, 20Y6 Retained Earnings Total Balances, August 1, 20Y7... $ $ 0 Net income... 25,000 25,000 Dividends.. (10,000) $ 15,000 (10,000) $ 15,000 Balances, Augr 20Υ7. . Balance Sheet For the Month Ended August 31, 20Y7 Assets $ 8,900 22,350 $31,250 Cash Accounts payable Total assets Liabilities Accounts receivable . $38,600 Supplies..... 4,000 Stockholders' Equity Retained…
Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1. Common Stock. 2. Discount on Bonds Payable. 3. Treasury Stock (at cost). 4. Notes Payable (short-term). 5. Raw Materials. 6. Preferred Stock Investments (long-term). 7. Unearned Rent Revenue. 8. Work in Process. 9. Copyrights. 10. Buildings. 11. Notes Receivable (short-term). 12. Cash. 13. Salaries and Wages Payable. 14. Accumulated Depreciation—Buildings. 15. Restricted Cash for Plant Expansion. 16. Land Held for Future Plant Site. 17. Allowance for Doubtful Accounts. 18. Retained Earnings. 19. Paid-in Capital in Excess of Par—Common Stock. 20. Unearned Subscriptions Revenue. 21. Receivables—Officers (due in one year). 22. Inventory (finished goods). 23. Accounts Receivable. 24. Bonds Payable (due in 4 years). 25. Noncontrolling Interest. Instructions Prepare a classified balance sheet in good form. (No monetary amounts…
You are required to prepare a trial balance for Alina, a sole proprietorship as at 31st December 2021 and assess the source and structure of the trial Balance of Alina . The following information should be used to prepare the trial balance. £000 Capital 200 - Source - General ledger Stocks 40 - Source - General ledger Sales 100 - Source - Sales ledger or accounts receivable Cash and cash equivalent 110 - Source - Cash book Bank loan 70 - Source - General ledger Furniture and Fittings 180 - Source - General ledger or nominal ledger Trade Receivables 30 - Source - Sales ledger or receivables ledger Trade Payables 40 - Source - Payable ledger or purchase ledger Wages 50 - Source - General ledger or nominal ledger TASK 2 From the data below please complete a P&L Account Opening Stock - £800,000 Depreciation - £80,000 Advertising expenses - £60,000 Rent - £15,000 Salaries - £56,000 Commission - £5,000 Other expenses - £7,000 Closing…
You are an accountant working for a company that has recently decided to incorporate. The company has incurred $4,300 for attorneys fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on March 13, assuming they are paid in cash?
The following transactions are for the Sun’s Corporation, December, 2018. 12 Jan. Sun’s Corporation issued shares 100000 and value of one share is Rs. 56. 14 Feb. Sun’s Corporation purchased furniture 30000 for cash. 17 Mar. Sold goods on credit for Rs. 90000. 21 Apr. Account receivable collected for Rs 10000, made on 17 March. 21 Apr Sun’s Corporation purchased computer 30000 on account payable. 23 Jun. Paid advertising expense for 9000. 12 Sep. Paid salary for 17000 30 Dec. Declared and paid dividend to shareholders 40000. Required: Pass Journal entries. Post each of the above transactions in the Ledger Prepare Trial Balance.
The following are selected account balances of Rule Corporation at the end of the current year: Debit Credit Operating Expenses $3,200 Sales Revenue $17,780 Cost of Goods Sold 8,500 Interest Expense 790 Gain on Sale of Land 590 Rule is subject to a 30% income tax rate, and shareholders own 1,200 shares of its capital stock. Required: Prepare the income statement for Rule. RULE CORPORATION Income Statement For the Year Ended December 31, Current Year Other items: Earnings per share
A corporation commences operations on January 1, 2019. It has the following account balances at December 31, 2019: Accounts Payable $30,000 Building 67,000 Accounts Receivable 45,000 Bank Loan 65,000 Cash 30,000 Common Stock 5,000 Equipment 23,000 Land 13,000 Unused Supplies 3,000 Net Income 29,000 No dividends were paid. Calculate retained earnings at December 31, 2019.
Carla Vista Corporation began operations on January 1, 2027. The following information is available for Carla Vista on December 31, 2027. Accounts receivable$1, 060Accounts payable$1, 420Equipment12, 880Cash2, 400Dividends2, 180Notes payable5, 750Supplies 2,050Common stock7, 940 Retained earningsNet income5, 460 Prepare a retained earnings statement for Carla Vista Corporation for 2027. (List items that increase retained earnings first.) Prepare a retained earnings statement for Carla Vista Corporation for 2027. (List Items that increase retained earnings first.) CARLA VISTA CORPORATION Retained Earnings Statement
Your firm has been engaged to examine the financial statements of Teal Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the information. Teal CorporationBalance SheetDecember 31, 2020 Assets Liabilities Current assets $1,888,000 Current liabilities $970,000 Other assets 5,114,480 Long-term liabilities 1,471,000 Stockholders’ equity 4,561,480 $7,002,480 $7,002,480 An analysis of current assets discloses the following. Cash (restricted in the amount of $301,000 for plant expansion) $582,000 Investments in land 185,000 Accounts receivable less allowance of $29,000 479,000 Inventories (LIFO flow assumption) 642,000 $1,888,000 Other assets include: Prepaid expenses $62,000 Plant and…
Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1. 2. 3. 4 5. 6. 7. 8. 9. 10. 11. 12. Common Stock. Discount on Bonds Payable. Treasury Stock (at cost). Notes Payable (short-term). Raw Materials. Equity Investments (long-term). Unearned Rent Revenue. Work in Process. Copyrights. Buildings. Notes Receivable (short-term). Cash. Current Assets Cash 13. Less 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Prepare a classified balance sheet in good form. (No monetary amounts are necessary.) (For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds Payable, and Restricted Cash, enter the account name only and do not provide the descriptive information provided in the question.) Salaries and Wages Payable. Accumulated Depreciation-Buildings. Restricted Cash for Plant Expansion.. Land Held for Future Plant Site. Allowance for Doubtful Accounts. Retained Earnings. Paid-in Capital in Excess…