Tobias Eaden started a sole proprietorship named Sky High Ads. A customer?s message can be displayed on
Question:
Tobias Eaden started a sole proprietorship named Sky High Ads. A customer?s message can be displayed on an airplane banner across the city. Sky High Ads had the following business activities during the month of November 2020:
Required
For each transaction, (1) complete the analysis, (2) determine the journal entry analysis, and (3) record the journal entry. Use the template below.
Transcribed Image Text:
Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Nov Sky High Ads. Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance. Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business. Purchased $5,000 of supplies on credit. Provided services to a customer for a marriage proposal and collected $16,000 on credit. 13 Paid $3,000 wages to a pilot. 17 Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15. Paid for half of the account payable from the November 9 transaction. Purchased $20,000 of new aircraft equipment by paying $15,000 cash and trading in old aircraft equipment with a 21 23 27 recorded cost of $5,000. Withdrew $3,200 cash from the business for personal use. 30 3. Nov 1 Analysis Journal entry analysis Journal Entry Account Titles and Explanation Debit Date Credit Nov 3
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Nov 1 Analysis Assets increaseEquity increases Journal entry analysis Debit the Cash account for 200000Debit the Aircraft Equipment account for 50000 Credit the Tobias Eaden Capital account for 250000 ...View the full answer
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Related Book For
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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