Question: please solve this problem Question 1: (20) A. On November 1, 2019, James Anderson organized Continental Moving Company. The transactions occurring during the first month

 please solve this problem Question 1: (20) A. On November 1,

please solve this problem

2019, James Anderson organized Continental Moving Company. The transactions occurring during the

Question 1: (20) A. On November 1, 2019, James Anderson organized Continental Moving Company. The transactions occurring during the first month of operations were as follows. Nov. 1 James deposited $700,000 cash in a bank account in the name of the business. Nov. 2 Purchased land for $190,000 and building for $350,000, paying $150,000 cash and signing a note payable for the rest to Secure Mortgage Company bearing interest rate at 9%. Nov. 2 Paid $12,000 to Morrison Realty as four months' advance rent on the parking lot. Nov. 3 Purchased five trucks from Willis Motors at a total cost of $600,000. A cash down payment of $300,000 was made and a note payable was issued for the balance of the purchase price. (This note payable is due in 60 days and does not call for the payment of interest.) Nov. 6 Purchased office equipment for cash, $30,000. Nov. 6 Purchased office supplies on account from Newport Office Company, $1,850. Payment due in 30 days. (These supplies are expected to last for several months.) Nov. 6 Moved furniture of Mr. and Mrs. James from New York to Los Angeles for $9,250. Collected $3,250 in cash, balance to be paid within 30 days. Nov. 9 Moved furniture for various clients for $40,500. Collected $20,500 in cash, balance to be paid within 30 days. Nov. 10 Received $15,000 cash as advance payment on moving furniture from Lara Construction Company. Nov. 15 Paid salaries to employees for the first half of the month, $18,600. Nov. 25 Moved furniture for various clients for $30,000. Cash collected in full. Nov. 30 Salaries paid for the second half of November amounted to $15,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!