Question
can someone answer all the questions? Anthony Brown opened a store selling SEAT motorcycles on January 1, current year. The following are the business transactions
can someone answer all the questions?
Anthony Brown opened a store selling SEAT motorcycles on January 1, current year. The following are the business transactions for the year 2020.
Jan. 1 | Anthony Brown invested 400,000 cash in the business in exchange for 4,000 shares of capital stock. |
Jan. 31 | A store was purchased for 600,000. A cash payment of 150,000 was made at the time of the purchase, and a note payable maturing on Dec 31st current year was issued for the remaining balance. |
February 28
March 10
| Office furniture was purchased for 150,000 cash. The furniture is planned to be replaced for new in 4 years time.
Acquired 10 electric silence motorcycles for 3000 each. The invoice has terms 3/0/n30 and Anthony decides to pay cash.
|
April 16
May 17
June 30
Sep 1
Sep 15
| Sold 3 motorcycles at a price of 4500, cash per unit.
Sold 3 motorcycles at a price of 4600, cash per unit.
Acquired 5 electric silence motorcycles for 3050 each. The invoice has terms 3/0/n30 and Anthony decides to pay cash.
A 1000 invoice was received for several advertising expenses placed in June 25th. The entire amount is due on September 25th.
Sold 6 motorcycles at a price of 4400, cash per unit.
|
Dec. 31
Dec. 31
| Paid commissions 5,890 for previous sales.
Contracted and paid an insurance policy for the next year, until Dec 31 of next year, for an amount of 19,000. |
The company uses perpetual inventory.
The company uses net purchase accounting policy.
The company is located in Spain, where the tax rate is 25%.
- Prepare journal entries (including explanations) for each transaction, using average cost method, FIFO & LIFO
- Prepare adjusting entries (including explanations)
- Prepare closing entries.
- Prepare an income statement (using average cost method, FIFO & LIFO)
- Prepare a balance sheet (after closing) (using average cost method, FIFO & LIFO)
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