1.  List and properly explain to the CEO of Legally Legal which three financial statements will to communicate financial accounting information to interested external parties.

QUESTION 2

1). Complete the January 31, 2020, balance sheet of Legally Legal using the following information.

2). Show your computations 2.2. Show your computations

3). Report on what stood out for you by analyzing the Balance sheet. Information:

• Stockholders’ equity at January 1, 2020, included capital stock of $140,000.

• The land and building were purchased by the business for a total price of $200,000 on January 25, 2020,

• On January 31, an appraiser valued the property at $260,000.

• Additional capital stock was issued in exchange for $50,000 cash.

• Retained earnings at January 31, 2020, amounted to $49,400.

	balance sheet/		legally legal service			/January 31,2020
	assets				liabilities and owners equity
				liabilities:
cash	$ 90,000			note payable	?	?
account receivable		?		account payable		45,600
land	135,000			total liabilities		?
building	?
equipment's	35,000			owners equity:
				capital stock		?
				retained earnings		?
total assets				total liabilities and owners equity			$375,000

QUESTION 3:
1). Enter the following transactions in the two-column journal provided for Legally Legal.
2). Explain your findings from the journal entry (What stands out, what is interesting about an entry etc.)

Info

• march 2 Purchased cleaning supplies from Robert Suppliers for $750 on account.
• march 4 Collected an account receivable of $525 from a customer, Elegant Kitchens.
• march 5 Paid $275 in partial payment of an account payable to Lucy Co for equipment purchased in February.
• March 7 Issued capital stock in exchange for $5,600 cash.
• March 8 Purchased office equipment from Diamond’s Warehouse for $3,700; paid $1,700 cash and issued a note payable due in 90 days for the balance.

Answer rating: 100% (QA)

Question 1 List and explain the three financial statements that will communicate financial accounting information to interested external parties The three financial statements that will communicate fi... View the full answer