The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts payable Accounts receivable Cash Common stock (par $1) Inventory Land Long-term notes payable Prepaid expenses Plant & Equipment Retained earnings Supplies Short-term notes payable Short-term investments Utilities payable Balance $32,500 40,000 7,000 7,680 2,500 40,000 2,000 3,340 17,200 16,200 1,500 54,700 2,800 1,260 Pepper's entered into the following transactions during January 2019: 1. Received $40,000 from customers for services provided in December 2018. 2. Paid $8,450 in advance for 3 months of rent. 3. Purchased inventory of $9,500 on account. 4. Issued 10,500 shares of common stock for $30,000. 5. Paid $1,260 for utilities incurred in December 2018. 6. Purchased US Bonds for $6,000 redeemable 1/31/22. 7. Sold land in exchange for $4,200 cash and a $25,000 note due 4/1/19. 8. Paid $8,275 in exchange for a pizza oven. 9. Signed a $10,800 six-month notes payable for the CEO's personal use. 10. Declared and paid dividends of $3,000. Required: a. Prepare the journal entry for each January transaction. b. Create T-accounts with beginning balances. Post each journal entry to the appropriate T- account and determine the ending balances. Create new accounts as necessary. c. Prepare a classified balance sheet at January 31, 2019 in proper form. d. Prepare the investing and financing sections of Pepper's statement of cash flows for the month ended January 31, 2019. The following information is provided for Pepper's Eatery at December 31, 2018. Adjusted Trial Balance Accounts payable Accounts receivable Cash Common stock (par $1) Inventory Land Long-term notes payable Prepaid expenses Plant & Equipment Retained earnings Supplies Short-term notes payable Short-term investments Utilities payable Balance $32,500 40,000 7,000 7,680 2,500 40,000 2,000 3,340 17,200 16,200 1,500 54,700 2,800 1,260 Pepper's entered into the following transactions during January 2019: 1. Received $40,000 from customers for services provided in December 2018. 2. Paid $8,450 in advance for 3 months of rent. 3. Purchased inventory of $9,500 on account. 4. Issued 10,500 shares of common stock for $30,000. 5. Paid $1,260 for utilities incurred in December 2018. 6. Purchased US Bonds for $6,000 redeemable 1/31/22. 7. Sold land in exchange for $4,200 cash and a $25,000 note due 4/1/19. 8. Paid $8,275 in exchange for a pizza oven. 9. Signed a $10,800 six-month notes payable for the CEO's personal use. 10. Declared and paid dividends of $3,000. Required: a. Prepare the journal entry for each January transaction. b. Create T-accounts with beginning balances. Post each journal entry to the appropriate T- account and determine the ending balances. Create new accounts as necessary. c. Prepare a classified balance sheet at January 31, 2019 in proper form. d. Prepare the investing and financing sections of Pepper's statement of cash flows for the month ended January 31, 2019.
Expert Answer:
Answer rating: 100% (QA)
SRINO 1 2 3 4 5 Answer Journal entry for Transcation Du... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
Students also viewed these general management questions
-
The following information is provided for Heatherton Inc. (Heatherton): On October 31, 2018, Heatherton sold 4,800 units of inventory to customers. Required: Identify which inventory costs would be...
-
The following information is provided for Clova Ltd. (Clova): Required: a. Calculate ending inventory on December 31, 2017 and 2018, and cost of sales and gross margin for the years ended December...
-
The following information is provided for Space Antenna Corp., which manufactures two products: Lo-Gain antennas and Hi-Gain antennas for use in remote areas. Space Antenna plans to produce 175...
-
You are given the following prices for zero coupon bonds with $1,000 face amount: One-year bond Two-year bond Three year bond $945 $920 $900 Find the price today for a two-year 4% coupon bond.
-
If the satellite in Problem 7 is orbiting at twice its original distance from the earth, what would be the weight or gravitational force exerted on the satellite by the earth?
-
John Thomas, vice president of Mallett Company (a producer of a variety of plastic products), has been supervising the implementation of an ABC management system. John wants to improve process...
-
What is the difference between internal ecological accounting and the other two types of ecological accountingexternal ecological accounting and other ecological accounting?
-
Explain why lean production and Six Sigma are so important to successful supply chain management.
-
1. What is the benefit from reducing or eliminating float? 2. What is a lockbox? What purpose does it serve? 3. What is a concentration bank? What purpose does it serve? 4. Is maximizing disbursement...
-
The comparative balance sheet o f JSA Ltd. at June 30, 2018, is as follows: JSA Ltd.'s 2018 income statement is as follows: Required a. Calculate the various accruals on an item-by-item basis. For...
-
Refer to Example 5.6 in the chapter. It was shown that the percentage change in the index of hourly earnings and the unemployment rate from 1958-1969 followed the traditional Phillips curve model. An...
-
Is the right to travel a fundamental right inherent to citizens, which cannot be abridged? Is this idea, well established in our history as Americans? Discuss the various new screening systems that...
-
What is the difference between "equal pay for equal work" and "equal pay for work of equal value" and the implications and differences for the HR Manager?
-
A building acquired at the beginning of the year at a cost of $74,000 has an estimated residual value of $3,700 and an estimated useful life of 4 years. Determine the following. (a) The...
-
Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for...
-
Laney purchased a new lawn mower yesterday for $350 from the local home improvement warehouse . When she arrived home and attempted to use the new mower, it would not start. Exasperated , Laney...
-
Now, think of two firms colluding to earn monopoly profits by each agreeing to enjoy half the market share. (i) If each firm honors this agreement, calculate each firms level of output and the...
-
Prepare a stock card using the following information A company is registered for GST which it pays quarterly, assume GST was last paid on the 30th of June 2019. It uses weighted average cost...
-
On January 2, 2013, Jennings Company purchases machinery and equipment and borrows $200,000 on a 5-year non-interest-bearing note. The principal of $200,000 will be paid at the maturity date of...
-
On July 1, 2013, Hope Corporation issued $600,000 of bonds with an 8% face rate of interest. The bonds were issued for $589,381.93, pay interest semiannually on June 30 and December 31, carry an...
-
Obtain Nestle's 2010 annual report using the ''Investor Relations'' portion of its website (do a web search for Nestle investor relations). Required: 1. Which inventory method does Nestle use? Why...
-
What is the purpose of tests of controls?
-
Why are some tests of controls performed during the interim period?
-
What four factors should the auditor consider in deciding what evidence, if any, needs to be obtained during the period from the interim date to the balance sheet date?
Study smarter with the SolutionInn App