3. Roddick Co. had the following transactions in May, the first month of its operations: a....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3. Roddick Co. had the following transactions in May, the first month of its operations: a. Received $37,000 cash and a large delivery van with a value of $48,000 from investors, who were given 5,200 shares of $0.05 par value common stock. b. Purchased land with a warehouse by making a $16,000 down payment and signing a 10-year note payable to the local bank for $86,000. The land has a value of $24,000 and the building's value is $78,000. Use separate accounts for land and buildings. c. Purchased new computer equipment for $3,700 cash, and purchased other office equipment for $5,200, signing a note payable due in 1 year. d. Paid $2,200 on the note payable to the bank [in (b) above] (ignore interest). e. Purchased short-term investments in the stock of other companies for $6,200 cash. Required: 1. Prepare the above journal entries. 2. Calculate the current ratio at May 31 (round to 2 decimal places). 3. For each of the events, indicate if it is an investing or financing activity and the amount of the effect on cash flows. Use parentheses for cash outflows. 3. Roddick Co. had the following transactions in May, the first month of its operations: a. Received $37,000 cash and a large delivery van with a value of $48,000 from investors, who were given 5,200 shares of $0.05 par value common stock. b. Purchased land with a warehouse by making a $16,000 down payment and signing a 10-year note payable to the local bank for $86,000. The land has a value of $24,000 and the building's value is $78,000. Use separate accounts for land and buildings. c. Purchased new computer equipment for $3,700 cash, and purchased other office equipment for $5,200, signing a note payable due in 1 year. d. Paid $2,200 on the note payable to the bank [in (b) above] (ignore interest). e. Purchased short-term investments in the stock of other companies for $6,200 cash. Required: 1. Prepare the above journal entries. 2. Calculate the current ratio at May 31 (round to 2 decimal places). 3. For each of the events, indicate if it is an investing or financing activity and the amount of the effect on cash flows. Use parentheses for cash outflows.
Expert Answer:
Answer rating: 100% (QA)
1 Journal Entries a Cash 37000 Delivery Van 48000 Common Stock 260 005 5200 shares Additional Paid... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2011, M Company granted 98,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2013 and expire on January 1, 2017. Each option can be...
-
How can the implementation of a job order costing system help improve managerial decision making?
-
Find power series representations centered at 0 for the following functions using known power series. Give the interval of convergence for the resulting series. f(x) 1 + x'
-
99 percent per month. In 2014, Boling resolved his suit against the gas can manufacturer. Shortly thereafter, Prospect sent Boling a Schedule of Purchases, asserting that Boling owed Prospect...
-
Raymond Companys trial balance at December 31, 2014, is presented below. All 2014 transactions have been recorded except for the items described shown below. Unrecorded transactions: 1. On May 1,...
-
How can a healthcare business increase its productivity and profitability using the disciplines found in Six Sigma?
-
Which statement is true when customers pay bills with a credit card? Question 1 options: a) You can use QuickBooks' Merchant Account Service to get online authorization and then download payments...
-
During 2022 Concord Corporation had sales on account of $ 745000 , cash sales of $ 316000 , and collections on account of $ 512000 . In addition, they collected $ 9400 which had been written off as...
-
1. Consider a firm that has fixed costs. Its marginal cost curve must pass through the lowest point on the average cost curve. Also, it must pass through the lowest point on the average variable cost...
-
In what ways is top management a subculture, and who is it unique from any other subcultures in typical work organizations?
-
How much is the final tax on each co-owner share in the co-ownership's net income?
-
What perceptual problems do managers need to overcome with failures? How can these perceptual problems be minimized?
-
What is the output of the following program? Assume that the actual id for the parent process is 50, and for the child process is 60. #include #include #include int main() { } pid_t idi, id2; id1 =...
-
Design a relational database schema for the object model of Figure, Assume Leagues, Tournaments, Players, and Rounds have a name attribute and a unique identifier. Additionally, Tournaments and...
-
Difference between truncate & delete
-
Deere & Company is the worlds leading producer of agricultural equipment; a leading supplier of broad range of industrial equipment for construction, forestry, and public works; a producer and...
-
Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $950,000. The estimated residual value was $50,000. Assume that the estimated useful life was five years,...
-
Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January 2014, you find (for January only) this information: a. Sales, per the cash...
-
V. Zarb, the marketing manager for Maltese Treasures Ltd, is preparing a sales budget for the year ended 30 June 2020. In reviewing the actual sales data for the previous year, the sales and...
-
The following expenses budget has been prepared for Abacus Services for the year ending 30 June 2020. Professional salaries, secretarial wages and training are paid in the quarter in which they are...
-
Bounce Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2020 as follows. All revenue is provided on account and...
Study smarter with the SolutionInn App