Steve's Outdoor Company purchased a new delivery van on January 1 for $59,000 plus $5,000 in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Steve's Outdoor Company purchased a new delivery van on January 1 for $59,000 plus $5,000 in sales tax. The company paid $14,000 cash on the van (including the sales tax), signing an 8 percent note for the $50,000 balance due in nine months (on September 30). On January 2, the company paid cash of $850 to have the company name and logo painted on the van. On September 30, the company paid the balance due on the van plus the interest. On December 31 (the end of the accounting period), Steve's Outdoor recorded depreciation on the van using the straight-line method with an estimated useful life of 5 years and an estimated residual value of $5,900. Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) Date January 1 January 2 September 30 Assets Liabilities Stockholders' Equity Steve's Outdoor Company purchased a new delivery van on January 1 for $59,000 plus $5,000 in sales tax. The company paid $14,000 cash on the van (including the sales tax), signing an 8 percent note for the $50,000 balance due in nine months (on September 30). On January 2, the company paid cash of $850 to have the company name and logo painted on the van. On September 30, the company paid the balance due on the van plus the interest. On December 31 (the end of the accounting period), Steve's Outdoor recorded depreciation on the van using the straight-line method with an estimated useful life of 5 years and an estimated residual value of $5,900. Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) Date January 1 January 2 September 30 Assets Liabilities Stockholders' Equity
Expert Answer:
Answer rating: 100% (QA)
Indicale effect of each transaction on accounting equa... View the full answer
Related Book For
Strategic Management A Competitive Advantage Approach Concepts
ISBN: 978-0133444797
15th edition
Authors: Fred R. David, Forest R. David
Posted Date:
Students also viewed these accounting questions
-
You are given the production function y=x"x2", where y is the output and x, and x2 are two inputs. Assume constant factor prices wi and w. Derive the (cost) conditional input demand functions that...
-
With reference to a Garnishee Order, answer the following questions: I. What will happen if a Garnishee Order and an Income Tax Attachment Order are received simultaneously on the same customer? II....
-
With an inflow of migrants, the Rybczynski Theorem suggests : Group of answer choices a) output of capital-intensive goods increases and output of labor-intensive goods decreases in the short run b )...
-
After attending a seminar on measuring customer profitability, Mason Ford decided to examine Olson Optics' customers to determine if the company truly knew how profitable its customers were. Olson...
-
Evaluate this statement: An S corporation can facilitate the meeting of its state income tax filing obligations by developing a common spreadsheet that allocates and apportions income among the...
-
The x86 instruction set includes the REP prefix that causes the instruction to be repeated a given number of times or until a condition is satisfied. Note that x86 instructions refer to 8 bits as a...
-
\(2000 \div(-40)\) Complete the indicated calculation.
-
Erickson Company sponsors a defined benefit pension plan. The corporation??s actuary provides the following information about the plan. Instructions(a) Compute the actual return on the plan assets in...
-
for nov 3, 63,750 is incorrect for nov 5, 48,310 is incorrect for nov 6, 13,500 is incorrect for nov 24, 56,900 is incorrect. PR 6-3A Sales-related and purchase-related transactions using perpetual...
-
Question (700 words) John Densmore, a law student and part-time musician, was seriously injured in a car accident. The other car's driver, Ray Manzarek, a renowned life motivation coach and a...
-
In a construction 3D printing project, we use a gantry printer with a printing speed of 120mm/s. The nozzle traveling distance (including the openings) per layer is 72 meters, and the height of the...
-
Let R=(x, y, z) and r= ||R||. Find the work done in moving an object from a distance a to a distance b in the force field F = R/.
-
Draft a closing argument based on the facts below Tim has commenced an action for battery against Dylan, alleging injuries suffered from stab wounds inflicted by Dylan, and seeking damages. At the...
-
Casio Manufacturing Company operates on a modified wage plan. During one week's operation, the following direct labor costs were incurred: PC Units Completed Employee Rate/100 MT W TH F units Leah...
-
The urgent-order will need 300 hours of skilled labor to complete the order. However, these skilled labor hours are currently working at full capacity in producing and selling a current product that...
-
Anna and Makenzie formed an LLC called " A&M Company, LLC \" . Anna and Makenzie did not make any elections regarding the tax classification of the entity. Anna contributed equipment worth $ 1 0 0...
-
. Question 4 (Marks: 20) Your line manager has informed you that you need to chair a meeting regarding a very sensitive topic. It is very important that the message you have been tasked with to...
-
Do public and private companies follow the same set of accounting rules? Explain.
-
Who are the major competitors of your college or university? What are their strengths and weaknesses? What are their strategies? How successful are these institutions compared to your college?
-
Consider developing a before and after BCG or IE Matrix to reveal the expected results of your proposed strategies. What limitation of the analysis would this procedure somewhat overcome?
-
What is a retreat and why do firms take the time and spend the money to have these?
-
U.S. Industries has a subsidiary in Switzerland. The subsidiary's financial statements are maintained in Swiss francs (CHF). Exchange rates (\($/CHF)\) for selected dates are as follows: The...
-
Asda is a British supermarket chain owned by Wal-Mart Stores, Inc. Assume that the following data relate to Asda's activities for 2017 (in millions).. Exchange rates (\($/)\) during 2017 are:...
-
Massmart Holdings Ltd. is a South African subsidiary of Wal-Mart Inc., selling high volume, low margin branded consumer goods to customers in twelve countries in Africa. Massmart's accounts are...
Study smarter with the SolutionInn App