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Harris Tools Company started business on October 1 , 2 0 2 3 . Its fiscal year runs through to September 3 0 of the
Harris Tools Company started business on October Its fiscal year runs through to September of the following year. The following transactions occurred in the fiscal year that started on October and ended on September On October Betty Harris invested $ to start the business. Harris is the only owner. She was issued common shares. On October Harris Tools borrowed $ from a venture capitalist a lender who specializes in startup companies and signed a note payable. On October the company rented a building. The rental agreement was a twoyear contract requiring quarterly rental payments every three months of $ payable in advance. The first payment was made on October covering the period from October to December Thereafter, payments were due on December March June and September for each threemonth period that followed. All of the rental payments were made as specified in the agreement. On October the company purchased equipment costing $ for cash. Initial inventory was purchased for $ cash. Additional purchases of inventory during the year totalled $ all on account. Sales during the year totalled $ of which $ were on account. Collections from customers on account totalled $ Payments to suppliers on account totalled $ The cost of the inventory that was sold during the year was $ Selling and administrative expenses totalled $ for the year. Of this amount, $ was unpaid at year end. Interest on the note payable from the venture capitalist was paid at year end September The interest rate on the note is In addition, $ of the note principal was repaid at that time. The equipment was depreciated based on an estimated useful life of years and an estimated residual value of $ The company declared and paid a dividend of $ a Show the effects of the transactions on the basic accounting equation. Enter amounts that decrease account balance using either a negative sign preceding the number eg or parentheses eg Indicate whether it is Revenues, Expenses or Dividends declared in the last column. In case if there is no effect then select "Not Applicable".
Harris Tools Company started business on October Its fiscal year runs through to September of the following year. The following transactions occurred in the fiscal year that started on October and ended on September
On October Betty Harris invested $ to start the business. Harris is the only owner. She was issued common shares.
On October Harris Tools borrowed $ from a venture capitalist a lender who specializes in startup companies and signed a note payable.
On October the company rented a building. The rental agreement was a twoyear contract requiring quarterly rental payments every three months of $ payable in advance. The first payment was made on October covering the period from October to December Thereafter, payments were due on December March June and September for each threemonth period that followed. All of the rental payments were made as specified in the agreement.
On October the company purchased equipment costing $ for cash.
Initial inventory was purchased for $ cash.
Additional purchases of inventory during the year totalled $ all on account.
Sales during the year totalled $ of which $ were on account.
Collections from customers on account totalled $
Payments to suppliers on account totalled $
The cost of the inventory that was sold during the year was $
Selling and administrative expenses totalled $ for the year. Of this amount, $ was unpaid at year end.
Interest on the note payable from the venture capitalist was paid at year end September The interest rate on the note is In addition, $ of the note principal was repaid at that time.
The equipment was depreciated based on an estimated useful life of years and an estimated residual value of $
The company declared and paid a dividend of $
a
Show the effects of the transactions on the basic accounting equation. Enter amounts that decrease account balance using either a negative sign preceding the number eg or parentheses eg Indicate whether it is Revenues, Expenses or Dividends declared in the last column. In case if there is no effect then select "Not Applicable".
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