The Topanga Company provides legal services to its customers. At the beginning of 2016, the company...
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The Topanga Company provides legal services to its customers. At the beginning of 2016, the company had the following balances in its financial accounting records: DEBIT CREDIT $2,000 Cash Accounts Receivable Building Accumulated Depreciation - Building $2,800 Notes Payable Common Stock $15,000 Retained Earnings $16,200 $1,800 $3,000 • Notes Payable represents money that won't need to be paid back for a long time. The company pays interest (in cash) every December 31 at a rate of 9%. • Building was purchased 28 years ago and is expected to last another 20 years (a total of 48 years) Transaction 1: $4,800 For each of the transactions below, write journal entries in a manner that makes it CLEAR which accounts are debited and which are credited. Failure to do this will be rewarded with NO credit. Transaction 2: On April 1, the company pays 3 years of rent in advance with $7,200 cash. On April 11, the company buys $20,000 of Inventory and the supplier trusts them to eventually pay (credit Accounts Payable). Transaction 3: On May 1, the company finds someone willing to buy $4,000 of Inventory for $14,000. The company delivers it immediately. The customer puts down $8,000 in Cash immediately AND is known to have excellent credit scores. Transaction 4: On August 26, the company gets a Utilities bill for $3,000 and pays it immediately. Transaction 5: On December 15, the company pays $2,000 (Cash) for some the Inventory it bought on April 11. On December 15, the company pays out a $1,000 cash dividend to its owners. Transaction 6: Part II - Booking Adjustments Now, it is December 31, 2016. For each of the transactions below, write journal entries in a manner that makes it CLEAR which accounts are debited and which are credited. Failure to do this will be rewarded with NO credit. • 9 months of the rent purchased on April 1 has been "used up" • Deal with Annual Depreciation Part III Preparing Financial Statements 1. -Deal with Annual Interest on the Note Payable 2. Prepare a well-formatted Income Statement for The Topanga Company for the year ended December 31, 2016. The Topanga Company Income Statement For the Year Ended December 31, 2016. Prepare a well-formatted Balance Sheet for The Topanga Company as of December 31, 2016. The Topanga Company Balance Sheet As of December 31, 2016 The Topanga Company provides legal services to its customers. At the beginning of 2016, the company had the following balances in its financial accounting records: DEBIT CREDIT $2,000 Cash Accounts Receivable Building Accumulated Depreciation - Building $2,800 Notes Payable Common Stock $15,000 Retained Earnings $16,200 $1,800 $3,000 • Notes Payable represents money that won't need to be paid back for a long time. The company pays interest (in cash) every December 31 at a rate of 9%. • Building was purchased 28 years ago and is expected to last another 20 years (a total of 48 years) Transaction 1: $4,800 For each of the transactions below, write journal entries in a manner that makes it CLEAR which accounts are debited and which are credited. Failure to do this will be rewarded with NO credit. Transaction 2: On April 1, the company pays 3 years of rent in advance with $7,200 cash. On April 11, the company buys $20,000 of Inventory and the supplier trusts them to eventually pay (credit Accounts Payable). Transaction 3: On May 1, the company finds someone willing to buy $4,000 of Inventory for $14,000. The company delivers it immediately. The customer puts down $8,000 in Cash immediately AND is known to have excellent credit scores. Transaction 4: On August 26, the company gets a Utilities bill for $3,000 and pays it immediately. Transaction 5: On December 15, the company pays $2,000 (Cash) for some the Inventory it bought on April 11. On December 15, the company pays out a $1,000 cash dividend to its owners. Transaction 6: Part II - Booking Adjustments Now, it is December 31, 2016. For each of the transactions below, write journal entries in a manner that makes it CLEAR which accounts are debited and which are credited. Failure to do this will be rewarded with NO credit. • 9 months of the rent purchased on April 1 has been "used up" • Deal with Annual Depreciation Part III Preparing Financial Statements 1. -Deal with Annual Interest on the Note Payable 2. Prepare a well-formatted Income Statement for The Topanga Company for the year ended December 31, 2016. The Topanga Company Income Statement For the Year Ended December 31, 2016. Prepare a well-formatted Balance Sheet for The Topanga Company as of December 31, 2016. The Topanga Company Balance Sheet As of December 31, 2016
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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