Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
help please 20 pts JOURNAL ENTRIES (20 points): The following are selected transactions for Extreme Pain Corporation, owned by sole shareholder Dorian Yates. For each
help please 20 pts JOURNAL ENTRIES (20 points): The following are selected transactions for Extreme Pain Corporation, owned by sole shareholder Dorian Yates. For each entry, explain the entry from the perspective of Extreme Pain Corporation. You do NOT need to worry about form. Just tell me what accounts are debited and credited and the amounts. For example, your response might be on January 1, debit Supplies 100 and credit Accounts Payable 100. Label each transaction by letter i.e. "A", "B", et cetera). A) On January 1, 2016, Dorian Yates invests $65,000 cash and $20,000 of supplies into the company in exchange for 8,500 shares of $10 par value common stock. (2.5 points) B) On January 2, the corporation pays cash for one month of rent at a small studio in a rundown part of town. The cost is $600 for the entire month. (2.5 points) C) On January 4, $500 of supplies are purchased; $300 is paid in cash and $200 is put on account. (2.5 points) D) On January 10, Extreme Pain signs a contract to perform services for Poindexter Nerdman for a year, starting on March 1. The company is paid $15,000 cash in advance. (2.5 points) E) On January 28, the company pays salaries of $8,000 (all cash). (2.5 points) F) Personal Training Revenue reported as of January 31 totals $19.000: $4,750 is still to be paid. (2.5 points) G) The company collects $1,750 of outstanding balances on account on January 31. (2.5 points) H) Additionally, on January 31, the company pays $1,450 on its outstanding balances. (2.5 points)
help please
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started