Use the following transactions to complete the first month of the Billy Bob's Daycare. Jan. 1...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the following transactions to complete the first month of the Billy Bob's Daycare. Jan. 1 Billy Bob Caroll organized the daycare as a corporation and invested his savings of $42,000 cash in the business in return for capital stock. Signed a contract to lease a building for $2,100 per month. Billy paid the first six months in advance. Paid cash for a one-year insurance policy $1,500. Purchased supplies on account for $215. 1 1 1 2 Paid cash for playground equipment and furniture. The playground equipment cost $5,000 and the furniture cost $1,300. 3 Purchased groceries on account for $300 (recorded as food expense). Paid employees' cash of $2,000. 14 17 Provided daycare services for 30 kids at $300/kid from January 3rd through today. Collected cash for 28 kids and the parent of the 2 of the kids agreed to pay in the future. Note: Amounts to be received in the future for services already provided are called account receivable. 21 Collected cash in advance of $900 for daycare services that will not be provided until next month (February). Note: Revenue recognition principle states that revenue is recorded when service is provided. No service will be provided until February so service is owed. Collected cash of $600 from the parent that agreed to pay in the future on January 17th Note: Revenue was already recorded on January 17th Paid employees' cash of $2,000 and Billy a cash salary of $3,500 for time worked at the daycare. 22 28 31 Provided daycare services for 30 kids at $300/kid from January 17th through today. Collected cash for all 30 kids. 31 Paid Billy a dividend of $200. ADJUSTMENT INFORMATION at January 31, 20XX 1. Assets have the following residual values and useful lives: Residual Value Furniture Playground Equipment $100 $200 Useful Life 5 10 2. The employees had worked 24 hours at $10/hour since last being paid on January 28th. Remember that the cash account is NEVER used in the adjustment process. 3. A physical count of supplies revealed that $40 remains in supplies. 4. Utility bills that have been received but not paid totaled $220. 5. Don't forget to record the adjusting entries for one month of expired insurance and rent. Use the following transactions to complete the first month of the Billy Bob's Daycare. Jan. 1 Billy Bob Caroll organized the daycare as a corporation and invested his savings of $42,000 cash in the business in return for capital stock. Signed a contract to lease a building for $2,100 per month. Billy paid the first six months in advance. Paid cash for a one-year insurance policy $1,500. Purchased supplies on account for $215. 1 1 1 2 Paid cash for playground equipment and furniture. The playground equipment cost $5,000 and the furniture cost $1,300. 3 Purchased groceries on account for $300 (recorded as food expense). Paid employees' cash of $2,000. 14 17 Provided daycare services for 30 kids at $300/kid from January 3rd through today. Collected cash for 28 kids and the parent of the 2 of the kids agreed to pay in the future. Note: Amounts to be received in the future for services already provided are called account receivable. 21 Collected cash in advance of $900 for daycare services that will not be provided until next month (February). Note: Revenue recognition principle states that revenue is recorded when service is provided. No service will be provided until February so service is owed. Collected cash of $600 from the parent that agreed to pay in the future on January 17th Note: Revenue was already recorded on January 17th Paid employees' cash of $2,000 and Billy a cash salary of $3,500 for time worked at the daycare. 22 28 31 Provided daycare services for 30 kids at $300/kid from January 17th through today. Collected cash for all 30 kids. 31 Paid Billy a dividend of $200. ADJUSTMENT INFORMATION at January 31, 20XX 1. Assets have the following residual values and useful lives: Residual Value Furniture Playground Equipment $100 $200 Useful Life 5 10 2. The employees had worked 24 hours at $10/hour since last being paid on January 28th. Remember that the cash account is NEVER used in the adjustment process. 3. A physical count of supplies revealed that $40 remains in supplies. 4. Utility bills that have been received but not paid totaled $220. 5. Don't forget to record the adjusting entries for one month of expired insurance and rent.
Expert Answer:
Answer rating: 100% (QA)
To complete the first month of Billy Bobs Daycare we need to record the transactions and make the necessary adjusting entries at the end of January Le... View the full answer
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
1. The rule in regard to overtime is straightforward: non-exempt employees cannot be required to work more than 40 hours per week without getting overtime pay of 1 and times the regular pay for each...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The University of Professional Studies, Accra (UPSA) is a public university in Ghana. UPSA is the first university in Ghana to provide both academic and business professional education. The...
-
An electronic device is to be cooled in air at 20?C by an array of equally spaced vertical rectangular fins as shown in the sketch below. The fins are made of aluminum and their average temperature,...
-
What operational factors must an airline consider in selecting new aircraft?
-
Calculate the energy density versus temperature very early in the universe when the temperatures were above \(k T=300 \mathrm{MeV}\). At those temperatures, quarks and gluons were released from...
-
(Issuance of Bonds with Detachable Warrants) On September 1, 2010, Jacob Company sold at 104 (plus accrued interest) 3,000 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable...
-
Sam, 3 0 , earns $ 6 0 , 0 0 0 annually, expecting a 2 % salary increase yearly. His current job also includes a fully paid health insurance plan and right now he has no retirement savings. He...
-
The yield on a general obligation bond for the city of Davenport fluctuates with the market. The monthly quotations for 2006 are given in Table P-9. Table P-9 MonthYield January ............. 9.29...
-
For dinner, you had one cup of clam chowder, which contains 16 g of carbohydrate, 12 g of fat, and 9 g of protein. How much energy, in kilocalories, is in the clam chowder? Typical Energy Values for...
-
How do international trade agreements, foreign direct investment, and global value chains contribute to economic development trajectories, and what challenges and opportunities arise in balancing the...
-
Edward Sapir and Benjamin Lee Whorf are noted for their Sapir-Whorf hypotheses which states that culture is reflected in the language and language determines a person's perception of reality....
-
Discuss the relative performance of your individual investments. Investment Name Investment Ticker Return META PLATFORMS META 76.1% APPLE AAPL 27.1% TESLA TSLA 68.4% THE PROCTER & GAMBLE COMPANY PG...
-
Because of declining sales, Wayne Enterprises Inc. announced today that it is suspending dividend payments on its preferred shares. The shares have a 5.8% annual dividend, have a par value of $55,...
-
PHOTOGRAPHY AND REALITY This reflection asks you to respond to ideas and quotations by Susan Sontag, from her 1977 book On Photography. She writes: A way of certifying experiences, taking photographs...
-
Ireland Corporation obtained a $48,000 note receivable from a customer on June 30, 2021. The note, along with interest at 5%, is due on June 30, 2022. On September 30, 2021, Ireland discounted the...
-
What is an access control list?
-
Prepare a pie chart for the last tax year with complete data for the Federal Forms 1040. Indicate how many of each type of tax return was filed, as a percentage of the total. Send the graph to your...
-
Jane, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Jane exchanges her property (basis of $50,000 and value of $150,000) for...
-
On December 1, 2015, Lavender Manufacturing Company (a corporation) purchased another company's assets, including a patent. The patent was used in Lavender's manufacturing operations; $49,500 was...
-
What is an injunction?
-
What is the main effect of increased use of liability insurance?
-
What are the arguments in favour of imposing a wide liability on professionals?
Study smarter with the SolutionInn App