Below is a summary of some of ABC Corporation's transactions carried out during 2022, its first quarter
Question:
Below is a summary of some of ABC Corporation's transactions carried out during 2022, its first quarter of operations that ended on March 31.
1. ABC shareholders invested $300,000 in cash in exchange for common stock.
2. The company owes $150,000 of the $200,000 for merchandise inventory it purchased from its suppliers.
3. ABC, Inc. generated sales of $700,000. Of these they have only collected $500,000. Uncollectible accounts were estimated at zero.
4. As of December 31, 2022, ABC had sold 80% of its inventory.
5. The company paid $125,000 in salaries.
6. On January 1, the company acquired equipment for $300,000 in cash. On March 31, it recognized a depreciation expense of $7,500.
7. On March 31, the company borrowed $500,000 from the bank at 12% payable quarterly for 5 years.
REQUIRED:
Submit a list of the company's debts with its corresponding balance and the total of all its debts.
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones