On October 1, 2021, TIM, Inc. started as a mobile application development company. A summary of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On October 1, 2021, TIM, Inc. started as a mobile application development company. A summary of transactions through December 31, 2021 is presented below. 1. Stockholders invested $50,000 in cash in Bank Boston in the name of the business. 2. New computer equipment is purchased for $6,000 in cash 3. Computer accessories are purchased from ABC Computer Store. The amount of accessories is $2,000 and ABC Computer Store agrees to receive the amount of the bill in the following days of October 4. The company receives $3,000 cash from its customer for mobile application development service it has performed. 5. The company gives an advertisement on the internet and receives a bill for $ 500 from the advertisement agency. The agency agrees to receive the amount of the bill in the following days of October 6. The company performs $4,000 of mobile application development service for its client. The client pays $2,000 in cash and states that the rest of this amount will be paid later. 7. The salaries of employees of $3,000 and office rent of $1,000 is paid in cash. 8. The company pays its $1,000 ABC Computer Store bill (Transaction 3) and $500 advertisement agency bill (Transaction 5). 9. The customer pays the $2,000 cash to TIM. It is the unpaid amount of the bill for mobile application development service performed by the company (Transaction 6). 10. Dividends of $500 paid to existing shareholders. 11. The company issues 10,000 shares of stock at $20 par- value. Required: 1. Identify each financial transaction by using accounting equation and make journal entries of financial transactions 2. Transfer the journal entries to the Ledger 3. Prepare the Trail Balance of the company On October 1, 2021, TIM, Inc. started as a mobile application development company. A summary of transactions through December 31, 2021 is presented below. 1. Stockholders invested $50,000 in cash in Bank Boston in the name of the business. 2. New computer equipment is purchased for $6,000 in cash 3. Computer accessories are purchased from ABC Computer Store. The amount of accessories is $2,000 and ABC Computer Store agrees to receive the amount of the bill in the following days of October 4. The company receives $3,000 cash from its customer for mobile application development service it has performed. 5. The company gives an advertisement on the internet and receives a bill for $ 500 from the advertisement agency. The agency agrees to receive the amount of the bill in the following days of October 6. The company performs $4,000 of mobile application development service for its client. The client pays $2,000 in cash and states that the rest of this amount will be paid later. 7. The salaries of employees of $3,000 and office rent of $1,000 is paid in cash. 8. The company pays its $1,000 ABC Computer Store bill (Transaction 3) and $500 advertisement agency bill (Transaction 5). 9. The customer pays the $2,000 cash to TIM. It is the unpaid amount of the bill for mobile application development service performed by the company (Transaction 6). 10. Dividends of $500 paid to existing shareholders. 11. The company issues 10,000 shares of stock at $20 par- value. Required: 1. Identify each financial transaction by using accounting equation and make journal entries of financial transactions 2. Transfer the journal entries to the Ledger 3. Prepare the Trail Balance of the company
Expert Answer:
Answer rating: 100% (QA)
ANSWER 1 Journal Entries Date Account Debit Credit 10012021 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
A small consulting company wants to make the switch to QuickBooks Online. All of their expenses are paid at the time they are incurred, so there is no need to track bills in the system. There is only...
-
Two spheres of mass 1 kg and 1 . 5 kg hang from the ends of two 1 . 5 meter long threads fixed at the ceiling point. The lighter sphere is pulled to one side so that its thread forms an angle of 6 0...
-
Frames S and S are moving relative to each other along the x and x axis. Observers in the two frames set their clocks to t = 0 when the origins coincide. In frame S, event 1 occurs at x 1 = 1.0 cy...
-
Assume that Sarazan Company has a share-option plan for top management. Each share option represents the right to purchase a R$1 par value ordinary share in the future at a price equal to the fair...
-
Over the years there has been a dramatic increase in the flight speed \((U)\), altitude \((h)\), weight \((\mathcal{W})\), and wing loading ( \(W / A=\) weight divided by wing area) of aircraft. Use...
-
To complete your last year in business school and then go through law school, you will need $10,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $10,000 one...
-
1. You have an object and have been told what material it is. You look it up in the density chart and it states that it is 18.6 g/cm 3 . You mass the object and see that it is 37.95 grams. How many...
-
Capstone Case: Sunrise Bakery Expansion The Sunrise Bakery Corporation was originally founded in Houston, TX in 1991 by Griffin Harris, who currently serves as the company's Chief Executive Officer....
-
A table of values of a linear function is shown below. X y -2 1 0 11 -8 -5 Find the y-intercept and slope of the function's graph, and find the equation for the function. y-intercept: slope:...
-
What is ITIL and how can it help improve the practice of integrated auditing?
-
True or False. If spending exceeds output, real GDP will decline as firms cut back on production.
-
Explain how ISO 31000Risk Management and related standards can help internal auditors improve business practices and better identify and assess organizational risks.
-
List five ISO standards and explain their relevance to internal auditors.
-
If inventories unexpectedly rise, then production _________ sales and firms will respond by ________ output. a. trails; expanding b. trails; reducing c. exceeds; expanding d. exceeds; reducing
-
Let c> 0 and let f [ac, bc] R be Riemann integrable. Working directly with the definition of integral, show that [ f(cx) dx = = da pbc ac f(x) dx. More generally, show that. pb-d/c 1 for f(cx + d)...
-
Given find the value of k. es 1 e kx dx = 1 4'
-
Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF's financial statements and disclosure notes for the year...
-
Since 1970, Super Rise, Inc., has provided maintenance services for elevators. On January 1, 2021, Super Rise obtains a contract to maintain an elevator in a 90-story building in New York City for 10...
-
Ayres Services acquired an asset for $80 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the...
-
An extremely intriguing feature of quantum entanglement is a property that has been called the "monogamy of entanglement": a particle can only be maximally entangled with precisely one other...
-
We had mentioned that from the partition function \(Z\), all possible thermodynamical quantities can be determined. In this problem, we will use the harmonic oscillator's partition function of Eq....
-
Let's consider the harmonic oscillator immersed in a heat bath of temperature \(T\). For any Hermitian operator \(\hat{A}\), we can define its thermal average denoted as...
Study smarter with the SolutionInn App