What are the journal entery for following and prepare Financial Statements and Trial balance On Jan 1st
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Question:
On Jan 1st 2019, Ginvold Co. began operating a subsidiary in on January 1, 2019 by acquiring all of the common stock for $50,000. They named the subsidiary Vingold, Inc.
On Jan 1st, Vingold, Inc. immediately borrowed $120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2020
On Jan 1st, Vingold, Inc. purchased a building for $170,000. (This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method.)
On Jan 1st, Vingold, Inc. rented the building for three years to a group of local doctors for $6,000 per month.
On Feb 1st, In February, Vingold, Inc. purchased $50,000 of Widgets for resale. The seller gave the company short term credit with terms of Net due in 90 days.
On March1st, In March, Vingold, Inc. sold $40,000 of the Widgets at a total price of $60,000 on terms of net due in 31 days.
On April 1st, In April, Vingold, Inc. received payment for the Widgets that they sold in March
On May 1st, Vingold, Inc. paid the balance due from the February purchase of the widgets
On October 1, Vingold, Inc. paid $5,000 for a building repair made on that date.
By year-end, payments totaling $60,000 in rental payments had been received from the doctors.
On Dec 31st, A cash dividend of $6,000 was transferred back to Ginvold on December 31, 2019.
Prepare an income statement, statement of Retained Ernings and a Balance sheet for Vingold Inc.
Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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