Summarize the transactions for Space Travel, Inc. and identify the effects on the accounting. On December 1,

Summarize the transactions for Space Travel, Inc. and identify the effects on the accounting.

Transcribed Image Text:

On December 1, 2022, Sean Spaceman formed a corporation, Space Travel, Inc. to launch a commercial spaceship into space. In this new business, Space Travel, Inc. partnered with NASA to deliver various payloads to the International Space Station to offset costs. Below is a listing of transactions Space Travel, Inc. experienced during its first month of operations. Reference Date Transaction # 1 12/1 2 12/3 3 12/3 4 12/4 5 12/8 6 12/10 7 8 12/12 12/13 9 12/15 10 12/15 11 12/15 12 12/19 13 12/19 14 12/20 15 12/20 16 12/31 Investors provided $47,000,000 of cash in exchange for stock of Space Travel, Inc. Purchased one spaceship from Elon Musk costing $17,000,000 in exchange for $6,000,000 cash and a $11,000,000 note payable Purchased and paid for a one-year insurance policy on the spaceship for $547,200 Purchased $1,700,000 of supplies on account. Paid wages of $380,500 to his employees for work performed Delivered supplies to the International Space Station and billed NASA for this service in the amount of $7,500,000 Paid $790,000 of the amount owed for the transaction on Dec 4 (purchased $1,700,000 of supplies on account) Collected $1,250,000 on the accounts receivable established when Space Travel, Inc. billed NASA on delivery services to the International Space Station. This delivery was already performed on 12/10 Paid wages of $395,000 Paid $1,800,750 for fuel costs used in traveling to the International Space Station Collected $2,980,000 as deposits from individuals who contracted for future rides in the spaceship Paid $1,700,000 of the Note Payable established when Sean purchased the spaceship Billed NASA for delivery services provided in the amount of $3,000,000 for a trip to the International Space Station Collected $950,000 on accounts receivable Purchased $750,000 of additional supplies on account Paid a $1,850,000 cash dividend to shareholders. On December 1, 2022, Sean Spaceman formed a corporation, Space Travel, Inc. to launch a commercial spaceship into space. In this new business, Space Travel, Inc. partnered with NASA to deliver various payloads to the International Space Station to offset costs. Below is a listing of transactions Space Travel, Inc. experienced during its first month of operations. Reference Date Transaction # 1 12/1 2 12/3 3 12/3 4 12/4 5 12/8 6 12/10 7 8 12/12 12/13 9 12/15 10 12/15 11 12/15 12 12/19 13 12/19 14 12/20 15 12/20 16 12/31 Investors provided $47,000,000 of cash in exchange for stock of Space Travel, Inc. Purchased one spaceship from Elon Musk costing $17,000,000 in exchange for $6,000,000 cash and a $11,000,000 note payable Purchased and paid for a one-year insurance policy on the spaceship for $547,200 Purchased $1,700,000 of supplies on account. Paid wages of $380,500 to his employees for work performed Delivered supplies to the International Space Station and billed NASA for this service in the amount of $7,500,000 Paid $790,000 of the amount owed for the transaction on Dec 4 (purchased $1,700,000 of supplies on account) Collected $1,250,000 on the accounts receivable established when Space Travel, Inc. billed NASA on delivery services to the International Space Station. This delivery was already performed on 12/10 Paid wages of $395,000 Paid $1,800,750 for fuel costs used in traveling to the International Space Station Collected $2,980,000 as deposits from individuals who contracted for future rides in the spaceship Paid $1,700,000 of the Note Payable established when Sean purchased the spaceship Billed NASA for delivery services provided in the amount of $3,000,000 for a trip to the International Space Station Collected $950,000 on accounts receivable Purchased $750,000 of additional supplies on account Paid a $1,850,000 cash dividend to shareholders.

Answer rating: 100% (QA)

Here is the summary of the transactions for Space Travel Inc during its first month of operations 1 ... View the full answer