On January 1 of the current year, Peter Houston invested $100,000 cash into his company MuniServ....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1 of the current year, Peter Houston invested $100,000 cash into his company MuniServ. Shortly thereafter, the company acquired selected assets of a bankrupt competitor. The acquisition included land ($15,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $20,000 (an account payable) by February 15. During January, the company had additional cash outlays for the following items: Purchases of store equipment $4,600 Loan payment 500 2,300 Salaries expense Advertising expense 700 The January utilities bill of $200 was received on January 31 and will be paid on February 10. MuniServ rendered services to clients on account amounting to $9,400 and $3,700 had been received in settlement. Instructions a. Present journal entries that reflect MuniServ's January transactions, starting with the $100,000 investment. b. Compute the total debits, total credits, and ending balance that would be found in the company's Cash account. Prepare a trail balance as of January 31. On January 1 of the current year, Peter Houston invested $100,000 cash into his company MuniServ. Shortly thereafter, the company acquired selected assets of a bankrupt competitor. The acquisition included land ($15,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $20,000 (an account payable) by February 15. During January, the company had additional cash outlays for the following items: Purchases of store equipment $4,600 Loan payment 500 2,300 Salaries expense Advertising expense 700 The January utilities bill of $200 was received on January 31 and will be paid on February 10. MuniServ rendered services to clients on account amounting to $9,400 and $3,700 had been received in settlement. Instructions a. Present journal entries that reflect MuniServ's January transactions, starting with the $100,000 investment. b. Compute the total debits, total credits, and ending balance that would be found in the company's Cash account. Prepare a trail balance as of January 31.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
During the first 5 years of owning their dream home, how much money has the couple paid towards the mortgage? What proportion of this has been applied towards interest?
-
A loan of $350,000 is to be fully repaid by level semi-annual repayments made in arrears for the next 10 years. The annual percentage rate charged for this loan is 6.09%. Calculate the amount of the...
-
Susan plans for her children and children's children to inherit a perpetual annual cash amount entitlement starting at some point in the future. Susan estimates that her investment will be worth one...
-
Simplify each expression in Problems 722. Classify each answer by number of terms and degree. (x + 2y3z) - (x - 5y + 4z)
-
In what ways can managers at each of the three levels of management contribute to organizational efficiency and effectiveness?
-
Explain whether the statement Water always flows from a high place to a low place is correct and why? If it is not correct, please give the correct statement?
-
How is the California court system structured?
-
A business executive says, The financial perspective of the balanced scorecard indicates how the organization adds value to shareholders. I am involved with two organizations: a small business that...
-
Meta Company has fixed costs of Br 100,000 and breakeven sales of Br 800,000.What is its operating income at Br 1,200,000 sales? During 1997, Harar Laboratory supplied hospitals with a comprehensive...
-
A taxpayer, who is a lifelong resident of Texas, joins the military at age 21. While stationed in New York, the taxpayer meets and marries a teacher from New Jersey. They both lived in New York al of...
-
Understanding the economics of markets and the tools of supply and demand, is the CHIPS act good government policy? Be certain to comment on market efficiency, the non-price determinants of demand...
-
The Swifty Hat Shop Limited counted the entire inventory in its store on August 3 1 and arrived at a total inventory cost of $ 9 3 , 9 0 0 . The count included $ 6 , 9 0 0 of inventory held on...
-
A bank is trying to determine how to invest some assets. At present $500,000 is available for investment in bonds, home loans, auto loans and personal loans. The annual rate of return on each type is...
-
How many feet of 3 0 - gauge wire is required to have a resistance of 1 ohm?
-
A frame structural system is subjected to gravity and lateral loads shown abore. Analyse t using the appropriate approximate methods of analysis. as
-
The solid rod shown in the enclosed sketch is supported by frictionless gears at "A" and "F", and it is loaded with the indicated torques on the sketch. It is desired to develop the following...
-
1. George throws a ball at a target 25 times. Each time George throws the ball, the probability of the ball hitting the target is 0.52 The random variable X represents the number of times George hits...
-
DEPARTMENT DATA EMPLOYEE DATA EmployeeNumber FirstName Mary Rosalie Richard George Alan 3 4 5 7 8 9 855555ES 12 13 14 15 16 17 Create the database tables in SQL or ACCESS: 18 19 20 PROJECT DATA Ken...
-
What recommendations should Denny make to Andy for improvement, if any?
-
How should depreciation and taxes be accounted for in the calculations?
-
How should Kirk respond if Brian argues that there is a good chance that copper prices could be coming down?
-
True or False. In the matrix iteration method, any computational error will not yield incorrect results.
-
A uniform simply supported beam carries two masses \(m_{1}\) and \(m_{2}\) with \(m_{2}=3 m_{1}\) as shown in Fig. 7.12. Find the fundamental natural frequency of the beam using Dunkerley's method....
-
Using Rayleigh's method, find the fundamental natural frequency of the torsional system shown in Fig. 6.11. Assume that \(J_{1}=J_{0}, J_{2}=2 J_{0}, J_{3}=3 J_{0}\), and \(k_{t 1}=k_{t 2}=k_{t...
Study smarter with the SolutionInn App