Wood, Corp was created on June 1. The company owns and operates a shoe store. Complete...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wood, Corp was created on June 1. The company owns and operates a shoe store. Complete the following transactions. June 1--Issued 100,000 shares of common stock in exchange for $250,000 cash. June 2--Purchased fixtures (asset) at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed. June 4--Paid $14,000 in rent on the building for the month of June. June 7--Purchased inventory on account at a cost of $200,000. The company uses the periodic method. June 10--Credit sales (on account) for the month totaled $280,000. June 15--Paid $120,000 on account for merchandise purchased in transaction 4. June 20--Collected $55,000 from customers on account billed in transaction 5. June 22--Paid $2,500 for utilities expense. June 25--Paid $24,000 for 12 months of insurance. June 28--Paid $3,000 for advertising expense. June 30--Paid dividends of $4,750. Complete the following adjusting entries. June 30--At the end of the month, the inventory was counted and had a value of $125,000. Make the necessary adjusting journal entry to close the purchases account and calculate the cost of goods sold. June 30--Adjust the prepaid insurance account for the amount used during the month. June 30--All employees are paid once a month and receive their paycheck on the tenth of each month. Payroll Expense for the month was $150,000. The following items need to be completed to use in Unit 02.01. Journal Entr tries T-Accounts Trial Balance (Unadjusted, Adjusted, Closing) Income Statement Balance Sheet Wood, Corp was created on June 1. The company owns and operates a shoe store. Complete the following transactions. June 1--Issued 100,000 shares of common stock in exchange for $250,000 cash. June 2--Purchased fixtures (asset) at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed. June 4--Paid $14,000 in rent on the building for the month of June. June 7--Purchased inventory on account at a cost of $200,000. The company uses the periodic method. June 10--Credit sales (on account) for the month totaled $280,000. June 15--Paid $120,000 on account for merchandise purchased in transaction 4. June 20--Collected $55,000 from customers on account billed in transaction 5. June 22--Paid $2,500 for utilities expense. June 25--Paid $24,000 for 12 months of insurance. June 28--Paid $3,000 for advertising expense. June 30--Paid dividends of $4,750. Complete the following adjusting entries. June 30--At the end of the month, the inventory was counted and had a value of $125,000. Make the necessary adjusting journal entry to close the purchases account and calculate the cost of goods sold. June 30--Adjust the prepaid insurance account for the amount used during the month. June 30--All employees are paid once a month and receive their paycheck on the tenth of each month. Payroll Expense for the month was $150,000. The following items need to be completed to use in Unit 02.01. Journal Entr tries T-Accounts Trial Balance (Unadjusted, Adjusted, Closing) Income Statement Balance Sheet
Expert Answer:
Answer rating: 100% (QA)
Journal Entries 1 June 1 Common Stock 250000 Cash 250000 2 June 2 Fixtures Asset 100000 Cash 40000 N... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
Major Project - Andrew Best - Best Business Solutions Incorporated (BBSI) Andrew Best was a very inquisitive child growing up. He was a great student in school and always asked a lot of questions....
-
The Christy Corporation had the following balance sheet as of December 31, 20x2. The transactions for the first three months of 20x3 are also presented along with other information about specific...
-
Use the ideas of Richardson's extrapolation and Romberg's method to evaluate the first derivative of f = ex at x = 0. To construct the first column of the Romberg's table, use the formula (exth -...
-
A component can be manufactured according to either of two designs and with either a more expensive or a less expensive material. Several components are manufactured with each combination of design...
-
Name the bones of the pelvic girdle and lower limb?
-
Elephant seals do deep dives to forage for food. The energy used by the seals in diving depends on their body composition; for example, fatter seals use less energy to swim to the surface at the end...
-
(Worksheet for E20-13) Using the information in E20-13 about Erickson Companys defined benefit pension plan, prepare a 2010 pension worksheet with supplementary schedules of computations. Prepare the...
-
6) A sinusoidal wave of amplitude A approaches and travels through a region of the string in which the mass per unit length changes gradually from p to p2. It can be shown that, in such a situation,...
-
A toy seller plans to sell 10,000 toys next year, next year, the year of inventory holding is $20 per toy, and the cost of placing orders is $75. The seller sells 250 days a year. Determine the total...
-
What is the opportunity cost of creating the technology for trips around the moon? SpaceX CEO Elon Musk announced that SpaceX plans to send two citizens on a one-week, 350,000-mile trip around the...
-
Explain why the inflation that John Cochrane fears would bring stagnation . . . Economist John H. Cochrane thinks the Fed must be careful not to over-stimulate the economy. He thinks inflation...
-
The projected deficit in 2017 is $28.5 billion and there is no timeline for a return to surplus. a. Explain the effect of the ongoing budget deficit on the loanable funds market. b. What effect does...
-
Kayne West has teamed with Los Angeles innercity schools to offer free passes for students! When Kayne West gave away tickets, what was free and what was scarce? Explain your answer.
-
What type of inflation process does John Cochrane warn could happen? Explain the role that inflation expectations would play if the outbreak of inflation were to happen with little warning. Economist...
-
Select Starbucks Company. Report on one process such as sales, purchases, payroll, fixed asset acquisitions, inventory, etc. Describe each requirement. Also address the following in the report: brief...
-
Could the owner of a business prepare a statement of financial position on 9 December or 23 June or today?
-
Use Minitab to obtain the results of Tukey's test for the shear bond strength data from Example 1 in Section 13.1. Approach The steps for obtaining the results of Tukey's test using Minitab, Excel,...
-
Another scientist examines how the presence of a nonnative bird species, the starling, affects other species of birds. Is this a population-level study, a community-level study, or an ecosystem-level...
-
What is the function of the placenta?
Study smarter with the SolutionInn App