Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ken Ryan organized Continental Moving Company. The transactions occurring during the first month of operations were as follows: Nov 1: Ryan deposited $400,000 cash in

Ken Ryan organized Continental Moving Company. The transactions occurring during the first month of operations were as follows: Nov 1: Ryan deposited $400,000 cash in a bank account in the name of the business Nov 2: Purchased land for $170,000 and building for $360,000, paying $130,000 cash and signing a $400,000 notes payable to secure Mortgage Company bearing interest at 9% Nov 3: Purchased six trucks from Willis Motors at a total cost of $432,000. A cash down payment of $200,000 was made, and a notes payable was issued for the balance of the purchase price. Nov 6: Purchased office equipment for cash $24,000. Nov 6: Moved furniture for Mr and Mrs Don Fitch from New York to Los Angeles for $8650. Collected $4850 in cash, balance to be paid within 30 days(credit moving service revenue). Nov 9: Moved furniture for various clients for $32,350. Collected $18,350 in cash, balance to be paid within 30 days. Nov 15: paid salaries to employees for the first half of the month, $17,400. Nov 25: Moved furniture for various clients for a total of $27000. Cash collected in full. Nov 30: Salaries paid for the second half of November amounted to $13,250. Nov 30: Received a gasoline bill for the month of November from Lucier Oil Company in the amount of $17,500, to be paid by December 10. Nov 30: Received bill of $1250 for repair work on trucks during November by Newport Repair Company. Payment is due within 30 days. Nov 30: Paid $5000 to Secure Mortgage company. This $5000 payment included $3000 interest expense for November and a $2000 reduction in the balance of the note payable issued on November 2. Nov 30: Ryan withdrew $4000 cash from the business for his personal use. Estimated useful life of the building is 20 years, trucks 4 years, and office equipment 10 years. The account titles to be used and the account numbers are as follows Instructions journal enteries. Post to ledger account. trial balance at November 30,19_. adjusted trial balance at November 30. income statement and owners equity, and a balance sheet in report form at November 30. closing enteries. post after-closing trial balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Statistics Unlocking The Power Of Data

Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock

1st Edition

0470601876, 978-0470601877

Students also viewed these Accounting questions