Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer plz asap. 1. Purchased $40,000 worth of shares 2. February Ist Prepaid rent for 12 months costing $12,000. 3. Feb ist Received $25,000 cash

answer plz asap.
image text in transcribed
image text in transcribed
1. Purchased $40,000 worth of shares 2. February Ist Prepaid rent for 12 months costing $12,000. 3. Feb ist Received $25,000 cash for services to be performed over the next 12 months. 4. Feb 27 th purchased $35,000 of inventory on account with terms of 2/15 n30 5. The goods were shipped FOB shipping point for $1,500. 6. On March Ist Snow Co. received a loan for $10,000 with a 5% interest rate, payable at the term of the loan. The loan was for 12 months. 7. March 2nd, Snow Co. paid for the inventory purchased on feb. 27 th. 8. Purchased a piece of equipment to help with manufacturing for $12,000. The salvage value is $2,000 and the useful life is 5 years. 9. Snow Co patented their technology for $20,000. 9. Snow Co patented their technology for $20,000. This was paid in cash. The patent has a useful life of 15 years. 10. Snow Co sold merchandise for $50,000. 11. The merchandise sold in event 10 , had a cost of $33,500. 12. The shipping terms from the event in #10, were FOB destination for \$2,200. 13. On Sept ist, Snow Co. issued a note receivable to Ball Co. for $10,000 with an interest rate of 6.5% due in 12 months. Interest is received at the term of the loan. 14. Snow Co. sold an existing piece of equipment for $2,000 and the asset was originally purchased for $12,000 and had accumulated depreciation of $8,000. A.JE's (Dec. 31) 1. Rent ADJ 2. Revenue ADJ 3. Equipment ADJ 4. Patent ADJ 5. Loan ADJ 6. Note Receivable ADJ 1. Purchased $40,000 worth of shares 2. February Ist Prepaid rent for 12 months costing $12,000. 3. Feb ist Received $25,000 cash for services to be performed over the next 12 months. 4. Feb 27 th purchased $35,000 of inventory on account with terms of 2/15 n30 5. The goods were shipped FOB shipping point for $1,500. 6. On March Ist Snow Co. received a loan for $10,000 with a 5% interest rate, payable at the term of the loan. The loan was for 12 months. 7. March 2nd, Snow Co. paid for the inventory purchased on feb. 27 th. 8. Purchased a piece of equipment to help with manufacturing for $12,000. The salvage value is $2,000 and the useful life is 5 years. 9. Snow Co patented their technology for $20,000. 9. Snow Co patented their technology for $20,000. This was paid in cash. The patent has a useful life of 15 years. 10. Snow Co sold merchandise for $50,000. 11. The merchandise sold in event 10 , had a cost of $33,500. 12. The shipping terms from the event in #10, were FOB destination for \$2,200. 13. On Sept ist, Snow Co. issued a note receivable to Ball Co. for $10,000 with an interest rate of 6.5% due in 12 months. Interest is received at the term of the loan. 14. Snow Co. sold an existing piece of equipment for $2,000 and the asset was originally purchased for $12,000 and had accumulated depreciation of $8,000. A.JE's (Dec. 31) 1. Rent ADJ 2. Revenue ADJ 3. Equipment ADJ 4. Patent ADJ 5. Loan ADJ 6. Note Receivable ADJ

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

17th Edition

1119613698, 978-1119613695

More Books

Students also viewed these Accounting questions

Question

What are the organizations reputation goals on this issue?

Answered: 1 week ago

Question

What change do you need to make to achieve the desired position?

Answered: 1 week ago