None On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets inexchange for its common stock to launch the business. On December 31, the company's records show the following itemsand amounts.CashAccounts receivableOffice supplies$ 7,950 Cash dividends17,450 Consulting revenueRent expenseSalaries expense4,200Office equipment19,060Land46,010Telephone expenseAccounts payableCommon stock9,430 Miscellaneous expenses85,050$ 3,07017,4504,5308,090880690Exercise 1-19 (Algo) Preparing a statement of retained earnings LO P2Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings onDecember 1 was $0.ERNST CONSULTINGStatement of Retained EarningRetained earnings, December 1$Add: Net income03,2603,260Less: Dividends3,070Retained earnings, December 31$190

Retained Earnings are the retained accumulated profit of the company over the past year. It includes…

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Office equipment Land Accounts payable Common stock $7,950 Cash dividends 17,450 Consulting revenue 4,200 Rent expense 19,060 Salaries expense 46,010 Telephone expense 9,430 Miscellaneous expenses 85,050 $ 3,070 17,450 4,530 8,090 880 690 Exercise 1-19 (Algo) Preparing a statement of retained earnings LO P2 Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0. ERNST CONSULTING Statement of Retained Earning Retained earnings, December 1 $ 0 Add: Net income 3,260 3,260 Less: Dividends 3,070 Retained earnings, December 31 $ 190

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Office equipment Land Accounts payable Common stock $7,950 Cash dividends 17,450 Consulting revenue 4,200 Rent expense 19,060 Salaries expense 46,010 Telephone expense 9,430 Miscellaneous expenses 85,050 $ 3,070 17,450 4,530 8,090 880 690 Exercise 1-19 (Algo) Preparing a statement of retained earnings LO P2 Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0. ERNST CONSULTING Statement of Retained Earning Retained earnings, December 1 $ 0 Add: Net income 3,260 3,260 Less: Dividends 3,070 Retained earnings, December 31 $ 190

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter11: Accounting For Transactions Using A General Journal

Section: Chapter Questions

Problem 3AP

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Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
ces Required information [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,780 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 8,990 16,540 3,930 45,980 18,660 9,170 84,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses ERNST CONSULTING Statement of Retained Earnings Using the above information prepare an October statement of retained earnings for Ernst Consulting. $ 2,830 16,540 4,300 7,740 850 670 S
1. Shown below are the account balances for Barnie Corp. for their year-end December 31, 2022: Cash $ 10,475 Accounts receivable 16,640 Inventory 98,220 Building 188,600 Accumulated amortization—building 72,600 Accounts payable 9,400 Income taxes payable 5,450 Common shares 154,525 Retained earnings, beginning 40,720 Dividends declared 7,500 Sales revenue 265,000 Cost of goods sold 143,600 Salaries and wages expense 56,900 Amortization expense 12,850 Utilities expense 3,300 Supplies expense 1,970 Income taxes expense 7,640 Required: prepare the: i) the income statement, ii) the statement of retained earnings, and iii) the classified balance sheet for Barnie Corporation.
In alphabetical order below are balance sheet items for Robinson Company at December 31, 2022. Sandra Robinson is the owner of Robinson Company. Accounts payable Accounts receivable Cash Owner's capital $94,600 72,400 45,700 23,500 W Prepare a balance sheet. (List Assets in order of liquidity.) ROBINSON COMPANY Balance Sheet Assets Liabilities and Owner's Equity $ $ 17 $
On June 1, Cline Co. paid $1,098,500 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow: Cash $ 223,000 Accounts receivable 232,500 Capitalized software costs 362,000 Goodwill 182,000 Liabilities (137,000 ) Net assets $ 862,500 On June 1, Renn’s accounts receivable had a fair value of $189,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $288,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?
On June 1, 2025, Oriole Service Co. was started with an initial investment in the company of $31,500 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2025, and the revenues and expenses for the month of June, its first month of operations: Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock. $5,470 4,280 8,400 2,398 400 37,400 31.500 Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense $13,740 780 860 670 230 1,200
In alphabetical order below are balance sheet items for Robinson Company at December 31, 2022. Sandra Robinson is the owner of Robinson Company. Accounts payable Accounts receivable Cash Owner's capital Total Assets Liabilities $94,600 Prepare a balance sheet. (List Assets in order of liquidity.) Owner's Equity 72,400 45,700 23,500 ROBINSON COMPANY Balance Sheet For the Year Ended December 31, 2022 Assets Liabilities and Owner's Equity Total Liabilities and Owner's Equity $ $ $ 118,100 94,600 23,500 118,100
Consider the following account balances of Evan McGruder, Incorporated, as of December 31, Year 3: Accounts Payable $ 113,420 Retained Earnings $ 56,000 Equipment 422,900 Notes Payable, due Year 5 344,500 Common Stock 206,500 Accounts Receivable 203,800 Income Tax Payable 4,030 Cash 97,750 Required:Prepare a classified balance sheet at December 31, Year 3.
Gregg Corp. reported revenue of $1,450,000 in its cash basis income statement for the year ended Dec. 31, Year 7. Additional information was as follows: Accounts receivable, Jan 1, Year 7 $400,000 Accounts receivable, Dec 31, Year 7 $530,000 Under the accrual basis, Gregg would report revenue of O $1,580,000 O $1,035,000 $1,335,000 O $1,505,000
On July 1, 2018, Brigham Corporation purchased Young Company by paying Tk.1,50,000 cash and issuing a Tk.1,00,000 note payable to Mr. Young. At July 1, 2018,the balance sheet of the company was as follows:Cash Tk.50,000 Accounts payable Tk.2,00,000Accounts Receivable Tk.90,000 Stockholders’ equity Tk.2,35,000Inventory Tk.1,00,000 Tk.4,35,000Land Tk.40,000Building Tk.75,000Equipment Tk.70,000Trademark Tk.10,000Tk.4,35,000The recorded amounts all approximate current values except for land (fair value Tk.60,000),Inventory (fair value Tk.1,25,000) and trademark (fair value Tk.15,000),Requirements:i) Prepare the July 1 entry for Brigham Corporation to record the purchase.ii) Prepare the December 31, entry for Brigham Corporation to record amortization ofintangible assets. The trademark has an estimated useful life of 5 years with a residualvalue of Tk. 5000.