Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

L Question 17 Augustin Company entered in the following transactions during 2020. The company was started when it received $19,000 cash from the owners

image text in transcribed

L Question 17 Augustin Company entered in the following transactions during 2020. The company was started when it received $19,000 cash from the owners who purchased stock. The company purchased equipment on January 1 that cost $10,000 cash. The equipment had a three-year useful life and a $1,000 salvage value. Augustin Company uses straight-line depreciation. Services provided for cash were $7.000. $1,600 of supplies was purchased on account. Services provided on account were $9,500. On November 1, the company paid cash of $3,600 in advance for six months rent, beginning immediately. Cash collections of accounts receivable amounted to $3,500. $500 of the accounts payable was paid. Supplies on hand as of December 31 amounted to $600. A $300 cash dividend was declared and paid to the owners. The book value amount of the equipment on the December 31, 2020 balance sheet would be: O a $6,667 (rounded) Ob. $10,000 Oc$6,000 Od. $7,000 Oe. $0

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

Financial Accounting Tools for Business Decision Making

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

7th edition

978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286

More Books

Students also viewed these Accounting questions

Question

=+a) Compute the EV for each alternative product (decision).

Answered: 1 week ago

Question

Differentiate. y = ln(3x + 1) ln(5x + 1)

Answered: 1 week ago