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Need help with Journal Entries Required information The following information applies to the questions displayed below.) RunHeavy Corporation (RHC) is a corporation that manages a
Need help with Journal Entries
Required information The following information applies to the questions displayed below.) RunHeavy Corporation (RHC) is a corporation that manages a local band. RHC was formed with an investment of $10,100 cash, paid in by the leader of the band on January 3 in exchange for common stock. On January 4, RHC purchased music equipment by paying $1,700 cash and signing an $8.400 promissory note payable in three years. On January 5, RHC booked the band for six concert events, at a price of $2,600 each. Of the six events, four were completed between January 10 and 20. On January 22, cash was collected for three of the four events. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,600 fee for one of them. On January 27, RHC paid $2,840 cash for the band's travel-related costs. On January 28, RHC paid its band members a total of $2.310 cash for salaries and wages for the first three events. As of January 31, the band members hadn't yet been paid wages for the fourth event completed in January, but they would be paid in February at the same rate as for the first three events. As of January 31, RHC has not yet recorded the $167 of monthly depreciation on the equipment. Also, RHC has not yet paid or recorded the $63 interest owed on the promissory note at January 31, RHC is subject to a 20% tax rate on the company's income before tax. Required: 1. Prepare journal entries to record the transactions and adjustments needed on each of the dates indicated above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1 Record the entry for the investment of $10,100 cash, paid by the leader of the band. 2 Record the purchase of music equipment by paying $1,700 cash and signing an $8,400 promissory note payable in three years. 3 Record the entry for the booking of the band for six concert events, at a price of $2,600 each. 4 Record the entry for revenue for the four events completed. 5 Record the receipt of cash for three of the four events at $2,600/event. 6 Record the collection on January 24 of half of the $2,600/event for an event scheduled in February. Record the payment of $2,840 travel related costs. 8 Record the payment of $2,310 cash for wages for three events. 9 Record the entry for the wages due but not paid for the fourth event. 10 Record the entry for depreciation of $167/month which has not yet been recorded. 11 Record the $63 interest expense not yet recorded and paid. 12 Record the income tax expense at 20% on the company's income before tax
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