Chapter 2: Q1BTN-2 (page 94)
Refer to Apple’s financial statements in Appendix A for the following questions.
Required
2. What amount of total assets does it report for each of the fiscal years ended September 26, 2015, and September 27, 2014?
September 2015 - $290,479
September 2014 - $231,839
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Question:Use the information in each of the following separate cases to calculate the unknown amount.
a. Corentine Co. had \(152,000 of accounts payable on September 30 and \)132,500 on October 31. Total purchases on account during October were \(281,000. Determine how much cash was paid on accounts payable during October.
b. On September 30, Valerian Co. had a \)102,500 balance in Accounts Receivable. During October, the company collected \(102,890 from its credit customers. The October 31 balance in Accounts Receivable was \)89,000. Determine the amount of sales on account that occurred in October.
c. During October, Alameda Company had \(102,500 of cash receipts and \)103,150 of cash disbursements. The October 31 Cash balance was $18,600. Determine how much cash the company had at the close of business on September 30.
Zucker Management Services opened for business and completed these transactions in November.
Nov. 1 Matt Zucker, the owner, invested \(30,000 cash along with \)15,000 of office equipment in the company in exchange for common stock.
2 The company prepaid \(4,500 cash for six months’ rent for an office. (Hint:Debit Prepaid Rent for \)4,500.)
4 The company made credit purchases of office equipment for \(2,500 and of office supplies for \)600. Payment is due within 10 days.
8 The company completed work for a client and immediately received \(3,400 cash.
12 The company completed a \)10,200 project for a client, who must pay within 30 days.
13 The company paid \(3,100 cash to settle the payable created on November 4.
19 The company paid \)1,800 cash for the premium on a 24-month insurance policy.
22 The company received \(5,200 cash as partial payment for the work completed on November 12.
24 The company completed work for another client for \)1,750 on credit.
28 The company paid \(5,300 cash in dividends.
29 The company purchased \)249 of additional office supplies on credit.
30 The company paid $831 cash for this month’s utility bill.
Required
1. Prepare general journal entries to record these transactions (use account titles listed in part 2).
Question:Humble Management Services opened for business and completed these transactions in September.
Sep. 1 Henry Humble, the owner, invested \(38,000 cash along with office equipment valued at \)15,000 in the company in exchange for common stock.
2 The company prepaid \(9,000 cash for 12 months’ rent for office space. (Hint:Debit Prepaid Rent for \)9,000.)
4 The company made credit purchases for \(8,000 in office equipment and \)2,400 in office supplies. Payment is due within 10 days.
8 The company completed work for a client and immediately received \(3,280 cash.
12 The company completed a \)15,400 project for a client, who must pay within 30 days.
13 The company paid \(10,400 cash to settle the payable created on September 4.
19 The company paid \)1,900 cash for the premium on an 18-month insurance policy. (Hint:Debit Prepaid Insurance for \(1,900.)
22 The company received \)7,700 cash as partial payment for the work completed on September 12.
24 The company completed work for another client for \(2,100 on credit.
28 The company paid \)5,300 cash in dividends.
29 The company purchased \(550 of additional office supplies on credit.
30 The company paid \)860 cash for this month’s utility bill.
Required
1. Prepare general journal entries to record these transactions (use account titles listed in part 2).
Question:1. Prepare general journal entries for the following transactions of Valdez Services.
a. The company paid \(2,000 cash for payment on a 6-month-old account payable for office supplies.
b. The company paid \)1,200 cash for the just completed two-week salary of the receptionist.
c. The company paid \(39,000 cash for equipment purchased.
d. The company paid \)800 cash for this month’s utilities.
e. The company paid $4,500 cash in dividends to the owner (sole shareholder).
2. Transactions a, c,and edid not record an expense. Match each transaction (a, c,and e) with one of the following reasons for not recording an expense.
______This transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occur in the process of providing goods or services to customers.
______This transaction decreased cash in settlement of a previously existing liability (equity did not change). Supplies expense is recorded when assets are used, not necessarily when cash is paid.
______This transaction involves the purchase of an asset. The form of the company’s assets changed, but total assets did not (and neither did equity).
Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of \(18,000 cash. After those seven transactions, the ledger included the following accounts with normal balances.
Cash ……………………………………….. \)37,600
Office supplies ………………………………... 890
Prepaid insurance …………………………...4,600
Office equipment ………………………….. 12,900
Accounts payable …………………………..12,900
Common stock …………………………….. 18,000
Dividends …………………………………….. 3,370
Engineering fees earned …………………. 36,000
Rent expense ………………………………… 7,540
Required
1. Prepare a trial balance for this business as of the end of May.
What do you think about this solution?
We value your feedback to improve our textbook solutions.
