Cengagenowv2, 1 Term Printed Access Card For Warren/jones’ Corporate Financial Accounting, 15th
15th Edition
ISBN: 9781337398244
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.25EX
Financial statements
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:
a. Identify the errors contained within the presented financial statements for We-Sell Realty.
b. Prepare a corrected set of financial statements for We-Sell Realty.
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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…
On February 20, services valued at $60,000 relating to the organization of a corporation were performed in
exchange for 1,000 shares of its $25 par value common stock.
Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the
dollar amounts in the debit or credit columns.
View transaction list
Journal entry worksheet
1
On February 20, services valued at $60,000 relating to the organization of a
corporation were performed in exchange for 1,000 shares of its $25 par value
common stock.
Note: Enter debits before credits.
Date
Feb. 20
General Journal
Debit
Credit
Bata Corporation a calendar year c
Corporation was formed and began
operaions on Apill1, 2022. The following
expenses were incurred during the first
year (April 1 through December 31)
Expenses of temporary directions and of
organizational meetings $27000
Fee paid to the state of incorporation
1,000
Accounting services incident to
organization 15,500
Legal services for drawing the corporate
charter and bylaws 10,500
Expenses incident to the printing and
sale of stock certificates 6,000
Assuming a § 248 election, what is the
Baba's immediate expense under
organizational expenditures for 2022?
Chapter 1 Solutions
Cengagenowv2, 1 Term Printed Access Card For Warren/jones’ Corporate Financial Accounting, 15th
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - 5. On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Accounting equation Be-The-One is a motivational...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Statement of stockholders equity Using the income...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Prob. 1.1EXCh. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Prob. 1.5EXCh. 1 - Accounting equation Determine the missing amount...Ch. 1 - Accounting equation Inspirational Inc. is a...Ch. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Statement of stockholders equity Financial...Ch. 1 - Income statement Inuring Services was organized on...Ch. 1 - Prob. 1.20EXCh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty was organized...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - A Financial statements Seth Feye established...Ch. 1 - Transactions, financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Transactions; financial statements On April 1,...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Prob. 1CPCh. 1 - Prob. 1.1MADCh. 1 - Analyze The Home Depot for three years The Home...Ch. 1 - Analyze Lowes for three years Lowes Companies,...Ch. 1 - Compare The Home Depot and Lowes Using your...Ch. 1 - Compare Papa Johns and Yum! Brands The following...Ch. 1 - Prob. 1.1TIFCh. 1 - Prob. 1.2TIFCh. 1 - Prob. 1.4TIFCh. 1 - Net income On January 1, 20Y5, Dr. Marcie Cousins...Ch. 1 - Prob. 1.6TIF
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