Explain how each of the following events or series of events and the related adjusting entry will
Question:
a. Acquired $60,000 cash from the issue of common stock.
b. Earned $20,000 of revenue on account. Collected $15,000 cash from accounts receivable.
c. Paid $4,800 cash on October 1 to purchase a one-year insurance policy.
d. Collected $12,000 in advance for services to be performed in the future. The contract called for services to start on August 1 and to continue for one year.
e. Accrued salaries amounting to $5,000.
f. Sold land that cost $15,000 for $15,000 cash.
g. Provided services for $9,200 cash.
h. Purchased $2,000 of supplies on account. Paid $1,500 cash on accounts payable. The ending balance in the Supplies account, after adjustment, was $800.
i. Paid cash for other operating expenses of$2,200.
Step by Step Answer:
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward