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Choice Chicken Company was organized on January 1, 2020. At the end of the first quarter (three months) of operations, the owner prepared a
Choice Chicken Company was organized on January 1, 2020. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown in the first row of the following tabulation: Required: 1. For each of the six transactions given in this tabulation, enter what you consider the correct amounts. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations.) Computation of Summary of Transactions Net Earnings Cash a. Services performed for customers, $91,000, of which $20,000 remained uncollected at the end of the quarter. $ 91,000 $ 71,000 b. Cash borrowed from the local bank, $26,000 (one-year note). C. d. Small service truck purchased at the end of the quarter to be used in the business for two years starting the next quarter: cost, $9,000 cash. Wages earned by employees, $39,000, of which one-sixth remained unpaid at the end of the quarter. Service supplies purchased for use in the business, $5,000 cash, of which e. $1,250 were unused (still on hand) at the end of the quarter. Other operating expenses, $36,000, of which one-half remained unpaid at the end of the quarter. $ 91,000 $ 71,000
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