Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chris's Beamer Biz, Inc., Year 1 - 20X1 You have decided to go into the business of selling Beamers. You decide to operate the business

Chris's Beamer Biz, Inc., Year 1 - 20X1 You have decided to go into the business of selling Beamers. You decide to operate the business as a corporation, Chris's Beamer Biz, Inc. On January 1, 20X1 you begin with $30,000 cash; $20,000 of the money is yours and $10,000 is borrowed from your Uncle Mike. For the $20,000 of yours, you issue yourself 100 shares of common stock. For the $10,000 borrowed from your uncle, you sign a note agreeing to pay back that amount on December 31, 20X4 and you will pay interest at 10% at the end of each year. On January 1, 20X1, you bought 11 Beamers for $3,000 each. During the year you sold 8 Beamers for $8,000 each. You also paid a security deposit of $2,000, advertising expense of $4,000 and 12 months' rent of $15,000. In addition to the cash you invested on January 1st, on August 1st you also invest a piece of land that you own into the business that is worth $40,000 in exchange for 200 more shares of stock. You pay the first year's interest to Uncle Mike of $1,000 on December 31 of 20X1. Your tax rate is 30% of your income before taxes and you paid 50 % of these taxes this year and will pay the rest in 20X2. So how did you do? Prepare Journal Entries, T-Accounts, and Financial Statements 87
image text in transcribed
image text in transcribed
Chris's Beamer Biz, Inc., Year 1 - 20X1 You have decided to go into the business of selling Beamers. You decide to operate the business as a corporation, Chris's Beamer Biz, Inc. On January 1, 20X1 you begin with $30,000 cash; $20,000 of the money is yours and $10,000 is borrowed from your Uncle Mike. For the $20,000 of yours, you issue yourself 100 shares of common stock. For the $10,000 borrowed from your uncle, you sign a note agreeing to pay back that amount on December 31,204 and you will pay interest at 10% at the end of each year. On January 1,20X1, you bought 11 Beamers for $3,000 each. During the year you sold 8 Beamers for $8,000 each. You also paid a security deposit of $2,000, advertising expense of $4,000 and 12 months' rent of $15,000. In addition to the cash you invested on January 1 st, on August 1st you also invest a piece of land that you own into the business that is worth $40,000 in exchange for 200 more shares of stock. You pay the first year's interest to Uncle Mike of $1,000 on December 31 of 20X1. Your tax rate is 30% of your income before taxes and you paid 50% of these taxes this year and will pay the rest in 202. So how did you do? Prepare Journal Entries, T-Accounts, and Financial Statements Chris's Beamer Biz, Inc., Year 1 - 20X1 You have decided to go into the business of selling Beamers. You decide to operate the business as a corporation, Chris's Beamer Biz, Inc. On January 1, 20X1 you begin with $30,000 cash; $20,000 of the money is yours and $10,000 is borrowed from your Uncle Mike. For the $20,000 of yours, you issue yourself 100 shares of common stock. For the $10,000 borrowed from your uncle, you sign a note agreeing to pay back that amount on December 31,204 and you will pay interest at 10% at the end of each year. On January 1,20X1, you bought 11 Beamers for $3,000 each. During the year you sold 8 Beamers for $8,000 each. You also paid a security deposit of $2,000, advertising expense of $4,000 and 12 months' rent of $15,000. In addition to the cash you invested on January 1st, on August 1st you also invest a piece of land that you own into the business that is worth $40,000 in exchange for 200 more shares of stock. You pay the first year's interest to Uncle Mike of $1,000 on December 31 of 20X1. Your tax rate is 30% of your income before taxes and you paid 50% of these taxes this year and will pay the rest in 20X2. So how did you do? Prepare Journal Entries, T-Accounts, and Financial Statements Chris's Beamer Biz, Inc., Year 1 - 20X1 You have decided to go into the business of selling Beamers. You decide to operate the business as a corporation, Chris's Beamer Biz, Inc. On January 1, 20X1 you begin with $30,000 cash; $20,000 of the money is yours and $10,000 is borrowed from your Uncle Mike. For the $20,000 of yours, you issue yourself 100 shares of common stock. For the $10,000 borrowed from your uncle, you sign a note agreeing to pay back that amount on December 31,204 and you will pay interest at 10% at the end of each year. On January 1,20X1, you bought 11 Beamers for $3,000 each. During the year you sold 8 Beamers for $8,000 each. You also paid a security deposit of $2,000, advertising expense of $4,000 and 12 months' rent of $15,000. In addition to the cash you invested on January 1 st, on August 1st you also invest a piece of land that you own into the business that is worth $40,000 in exchange for 200 more shares of stock. You pay the first year's interest to Uncle Mike of $1,000 on December 31 of 20X1. Your tax rate is 30% of your income before taxes and you paid 50% of these taxes this year and will pay the rest in 202. So how did you do? Prepare Journal Entries, T-Accounts, and Financial Statements Chris's Beamer Biz, Inc., Year 1 - 20X1 You have decided to go into the business of selling Beamers. You decide to operate the business as a corporation, Chris's Beamer Biz, Inc. On January 1, 20X1 you begin with $30,000 cash; $20,000 of the money is yours and $10,000 is borrowed from your Uncle Mike. For the $20,000 of yours, you issue yourself 100 shares of common stock. For the $10,000 borrowed from your uncle, you sign a note agreeing to pay back that amount on December 31,204 and you will pay interest at 10% at the end of each year. On January 1,20X1, you bought 11 Beamers for $3,000 each. During the year you sold 8 Beamers for $8,000 each. You also paid a security deposit of $2,000, advertising expense of $4,000 and 12 months' rent of $15,000. In addition to the cash you invested on January 1st, on August 1st you also invest a piece of land that you own into the business that is worth $40,000 in exchange for 200 more shares of stock. You pay the first year's interest to Uncle Mike of $1,000 on December 31 of 20X1. Your tax rate is 30% of your income before taxes and you paid 50% of these taxes this year and will pay the rest in 20X2. So how did you do? Prepare Journal Entries, T-Accounts, and Financial Statements

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

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

6th Canadian Edition

1119731828, 9781119731825

More Books

Students also viewed these Accounting questions