On August 2014, Grace Fung incorporates and opens Fung Research Services Inc. (FRS). During the <\/p>
company's first ten days of operations, it completes the following transactions:<\/p>
<\/p>
1.<\/p>
To begin operations, Grace Fung deposits $400,000 of personal funds in a bank account entitled<\/p>
Fung's Research Services Inc. and the business issues shares of common stock in the amount of<\/p>
$400,000. Grace had obtained the $400,000 by selling off RRSPs that she had saved over the<\/p>
years. $400,000 was the proceeds used from the sale of $500,000 worth of RRSPs.<\/p>
2.<\/p>
FRS pays $300,000 cash for a small house which is to be used as an office. <\/p>
3.<\/p>
Grace has a personal use residential property from which she does some work although the bulk<\/p>
of her days are spent at the FRS offices in the other small house. She does repairs on the<\/p>
residential property in the amount of $10,000 although this is not to be expensed against the<\/p>
business as such an expenditure is considered to be a personal and living expense.<\/p>
4.<\/p>
Grace goes over to Staples\/Business Depot and buys $500 worth of office supplies for the<\/p>
business. She opens up a charge account with Staples\/Business Depot and thus has 30 days to<\/p>
pay. <\/p>
5.<\/p>
FRS finds a government surplus office equipment sale in the newspaper and goes to an auction<\/p>
to buy office equipment. A bargain is found and FRS pays $6,000 cash for office furniture.<\/p>
6.<\/p>
The company pays $250 on the Staples\/Business Depot purchase in #4.<\/p>
7.<\/p>
Grace decided she needs a vacation and pays herself a $1,000 dividend out of FRS.<\/p>
8.<\/p>
FRS does some research work for the Hamilton Tiger Cats and bills them $15,000. She receives<\/p>
$5,000 immediately in cash and the balance is to be paid in 90 days (the Ti-Cats are in dire straits<\/p>
from a cash-flow point of view, but Grace is understanding, plus she needs the work).<\/p>
9.<\/p>
Grace realizes that she has used $100 worth of supplies and decides to expense it accordingly.<\/p>
<\/p>
What would t-account entries and key the transactions look like according to what happened above.Then Post the entries to the T-accounts and calculate ending balances. prepare the trial balance of FRS at August 10, 2014. Prepare the financial statements for the first 10 days of operations at FRS<\/p>", "transcribed_text": "", "related_book": { "title": "Global Strategy", "isbn": "0357512367, 978-0357512364", "edition": "5th Edition", "authors": "Mike W. Peng", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/649592eaa157d_32303.jpg", "uri": "\/textbooks\/global-strategy-5th-edition-9780357512364", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CW1QTMFL", "uri": "\/textbooks\/stock-market-a-beginners-guide-to-investing-and-trading-1st-edition-979-8880185405-255924", "name": "Stock Market A Beginners Guide To Investing And Trading", "edition": "1st Edition" }, "question_posted": "2024-06-28 03:39:32", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-national-football-league-nfl-records-a-variety-of-performance-250600", "description": "The National Football League (NFL) records a variety of performance data for individuals and teams. A portion of the data showing the average number of passing yards obtained per game on offense...", "stars": 3 }, { "url": "\/study-help\/theory-of-probability\/for-the-mm1-queue-compute-a-the-expected-number-of-1982934", "description": "For the M\/M\/1 queue, compute (a) the expected number of arrivals during a service period and (b) the probability that no customers arrive during a service period. Hint: Condition.", "stars": 3 }, { "url": "\/jobco-is-planning-to-produce-at-least-2000-widgets-on", "description": "Jobco is planning to produce at least 2000 widgets on three machines. The minimum lot size on any machine is 500 widgets. The following table gives the pertinent data of the situation. Formulate the...", "stars": 3 }, { "url": "\/study-help\/questions\/1-accounting-changes-are-treated-differently-from-accounting-errors-respond-9839736", "description": "1. Accounting changes are treated differently from accounting errors. Respond to this statement with supporting arguments. 2. Responsibility centers can be structured to promote better alignment for...", "stars": 3 }, { "url": "\/study-help\/questions\/brief-exercise-1018-suppose-the-2020-adidas-financial-statements-contain-7797443", "description": "Brief Exercise 10-18 Suppose the 2020 adidas financial statements contain the following selected data (in millions). $200 178 Current assets Total assets Current liabilities Total liabilities Cash...", "stars": 3 }, { "url": "\/study-help\/questions\/classic-hand-pumps-work-by-sucking-air-out-and-creating-1029930", "description": "Classic hand pumps work by sucking air out and creating a vacuum the top of the pipe, which will drive the fluid up the pipe. In fact, it is similar to how we use a straw to drink liquids. What is...", "stars": 3 }, { "url": "\/study-help\/questions\/you-are-planning-to-put-up-your-own-business-at-1010253", "description": "You are planning to put up your own business. At that time, the craze was all about the Rubik's Cube. You are not sure if this will continue to be popular. Questions: Going back to the story, will...", "stars": 3 }, { "url": "\/study-help\/questions\/consider-the-flows-in-the-shouldice-table-shown-below-day-1008974", "description": "Consider the flows in the Shouldice table shown below. Day In (afternoon of the day) Discharge (morning of the day) In the System Sunday (S1) 27 0 27 Monday (M1) 27 0 54 Tuesday (T1) 27 0 81...", "stars": 3 }, { "url": "\/study-help\/questions\/1-a-firm-needed-500000-total-resources-to-operate-a-999053", "description": "1) A firm needed $500,000 total resources to operate a project that would yield them a profit. It has drafted two (2) alternatives in order to procure this amount. First alternative - invest $40,000...", "stars": 3 }, { "url": "\/study-help\/questions\/assume-you-are-a-network-administrator-your-internal-network-has-1011897", "description": "Assume you are a network administrator. Your internal network has application servers that are accessed by inbound traffic from the Internet. You are considering several strategies. The strategy you...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/coverpdf-i-need-help-finding-part-6c-what-information-do-4232306", "next": "\/study-help\/questions\/which-of-the-following-statements-about-journals-is-false-the-4232308" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "On August 2014, Grace Fung incorporates and opens Fung Research Services Inc.", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/on-august-2014-grace-fung-incorporates-and-opens-fung-research-4232307" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }} }