Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Journalize this question 09/01: An angel investor wrote a $200,000 check to the company as the initial capital in exchange for 200,000 shares of common

Journalize this question

  1. 09/01: An angel investor wrote a $200,000 check to the company as the initial capital in exchange for 200,000 shares of common stock. With this equity capital, the company started as Penguin Visual Intelligence Co. in the facial recognition industry.
  2. 09/01: Penguin VIC borrowed $100,000 as a notefrom another angel investor, with 12% annual interest rate. The interests are paid on the 1st day of each month starting from the next month, and the principal is to be paidafter one year. Use Notes Payable for the liability account.
  3. 09/03: Penguin VIC signed a rental agreement for a lab and paid $5,000 as a security deposit and $4,000 as the rent for September. Utilities are included. Use Security Deposit to record the assets for the $5000.
  4. 09/04: Penguin VIC purchased research and testing equipment for $120,000 on credit with $10,000/month installment agreement paid on the first of each month starting from October. The useful life of the equipment is 4years, and the salvage value is estimated to be $0. Straight-line depreciation method is adoptedfor this equipment.
  5. 09/05: Penguin VIC paid $1,200 for a six-monthinsurance policy for its lab.
  6. 09/06: Penguin VIC received a job from the county sheriffs department for suspect detection in the crowd. The sheriffs department paid $40,000 deposit in advance to start the project which should be completedby late October. According to the contract, another $40,000 will be paid by October the 31st, making the total contract worth $80,000.
  7. 09/07: Penguin VIC hired two employees to work for the countys project, and their rates are $7,000/month each, paid semi-monthly.
  8. 09/15: Penguin VIC paid $7,000 salary to its employees.
  9. 09/16: Penguin VIC paid $5,000 to purchase electrical components from a distributor of Emerson.
  10. 09/17: Penguin VIC purchased $6,000 optical components from a distributor of Ricoh on credit.
  11. 09/18: Penguin VIC advertised on a regional security forum for an in-development product.
  12. 09/19: Penguin VIC was billed by the forum organizerfor $1,200, and the payment should be fulfilled by 09/30. Use Advertising Expense for the expense.
  13. 09/20: Penguin VIC sold products to a client. The sales was $20,000, and the cost of the inventory was $10,000. Use The Cost of Sales to record the cost of the sold inventory.
  14. 09/30: Penguin VIC paid $3,000 to the Ricoh distributor.
  15. 09/30: Penguin VIC paid $7,000 salary to its employees.
  16. 09/30: Penguin VIC paid $1,200 to the security forum.
  17. 09/30: (adjustment) Record the interest expense of the note payable for September.
  18. 09/30: (adjustment) Record the depreciation expense of the equipment for September.
  19. 09/30: (adjustment) Record the insurance expense for September.
  20. 09/30: (adjustment) 30% of the sheriffs job was finished. Recognize the proportional revenue.

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

The Solitary Auditor

Authors: Michael Knapp

1st Edition

161163878X, 978-1611638783

More Books

Students also viewed these Accounting questions