Question: Virginia Mining began operations by issuing common stock for $150,000. The company paid $135,000 cash in advance for a one-year contract to lease machinery for

Virginia Mining began operations by issuing common stock for $150,000. The company paid $135,000 cash in advance for a one-year contract to lease machinery for the business. The lease agreement was signed on March 1, 2016, and was effective immediately. Virginia Mining received $172,500 of cash revenue in 2016.
Required
a. Record the March 1 cash payment in general journal format.
b. Record in general journal format the adjustment required as of December 31, 2016.
c. Record all 2016 events in a horizontal statements model like the following one:

d. What amount of net income would be reported on the 2016 income statement? What is the amount of net cash flow from operating activities for 2016?
e. Determine the amount of prepaid rent that would be reported on the December 31, 2016, balance sheet.

Assets Liab. Equity Rev.Exp.Net Inc. Cash Flow Common Ret. Stock Earn. Prep. Cash + Rent =

Step by Step Solution

★★★★★

3.45 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a b Virginia Mining Journal Entries for 2016 Date Account Titles Debit Credit a 31 Prepaid R... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

443-B-A-D-E-F (178).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

This Excel worksheet form is to be used to recreate Exhibit 17 . The workbook, and instructions on how to complete the file, can be found in Connect. Required: 1. Check your worksheet by changing the...

Washington Mining began operations by issuing common stock for $150,000. The company paid $135,000 cash in advance for a one-year contract to lease machinery for the business. The lease agreement was...

The company collected $1,000 cash in advance from a customer for services to be rendered. Subsequently, the company rendered the services. Make the journal entries necessary to record (1) The receipt...

A business has net cash flow from operating activities of $1,500,250 this year. Last year the amount was $1,240,500. What is the dollar amount of variance from this activity this year as compared to...

| |Washington Mining began operations by issuing common stock for $84,500. The company 2 paid $76,050 cash in advance for a one-year contract to lease machinery for the business. 3 The lease...

O13-2 Exercise 13-16B Recording prepaid items and identifying their effect on financial statements Virginia Mining began operations by issuing common stock for $150,000. The company paid $135,000...

Be careful-Files from the Internet can contain viruses. Unless you need to edit, it's saler EXERCISE 13-14B (cont.) Paid $700 o ccounts payable . Pild 56,800 cash in advance for an insurance policy....

California Mining began operations by issuing common stock for $\$ 100,000$. The company paid $\$ 90,000$ cash in advance for a one-year contract to lease machinery for the business. The lease...

Washington Mining began operations by issuing common stock for $150,000. The company paid $135,000 cah in advance for a one- year contract to lease machinery for the business. The lease agreement was...

Cherokee Company began operations when It Issued common stock for $84,500 cash. It paid $76,050 cash in advance for a one-vi contract to lease delivery equipment for the business. It signed the lease...

Espresso Disposition Corporation 1 and Rowland Coffee Roasters, Inc. (collectively Appellants) seek review of the trial courts order denying their motions to dismiss [Santana Sales & Marketing Group,...

Record the following transactions of the State of Delaware general government activities for the year ended June 30, 20X6. (Amounts are stated in thousands of dollars.) Make all required entries. 1....

What is the most common dilemma clients encounter when faced with long - term care expenses?

Limited liability company (LLC) status has become a popular form of operating a business in the United States. Investigate how the growth of LLC status has affected the relative number of new...

Using an example, describe network externalities and explain the phenomenon of Metcalfes Law.

You have decided to create your own index of higher-beta components of the Dow-Jones 30 Industrials. Using Yahoo ? s stock screener, you come up with the data below. a. Compute the...

Let c be a constant and consider the density function for the random variable Y: a. Find the value of c. b. Find the cumulative distribution function F(y). c. Compute F(1). d. Compute P(Y > .5)....

You need to drill a 20. mm hole in a piece of stainless steel. The drill feed is 0.10 mm/revolution and its rotational speed is 400. RPM. Determine: a. The material removal rate b. The power required...

Table 9.10 illustrates the hypothetical demand and supply schedules of labor in the United States. Assume that labor and capital are the only two factors of production. On graph paper, plot these...

How does distributing assets (paying dividends) to owners affect the accounting equation?

What are the similarities and differences between dividends and expenses?

2. The following table shows the constituent stocks of a hypothetical index. Stock B splits two-for-one during the period. a. Calculate the returns on both the price-weighted index and the market...

Daily Enterprises is purchasing a $10.3 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value....

Fast Growth Company currently pays no dividends ( DIV 0 = $ 0 ) . To help fund its growth, Fast will also pay no dividends for the next 5 years. In the 6 th year, however, Fast expects to pay a...