Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ouellette Corporation began operations on Jamuary 2. Its year end is Decernber 31, and it adjusts its accounts annually. Selected transactions for the current year

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Ouellette Corporation began operations on Jamuary 2. Its year end is Decernber 31, and it adjusts its accounts annually. Selected transactions for the current year follow: 1. On January 2, purchased supplies for $4,100 cash. A plysical count at December 31 revealed that $700 of supplies were still on hand. 2. Purchased a vehicle for $45,000 on April 1, paying $5,000 cash and signirig a $40,000 bank loan for the balance. The vehicle is estimated to have a useful life of 5 years and the compary uses straight-line depreciation. The bank loan has an interest of 38, payable at maturity. 3. Purchased a $3,600, one-year insurance policy for cash on August 1. The policy carne into effect on that date. 4. Received a \$1,600 advance cash payment from a client on November 9 for services to be performed in the future As at. December 31 , half of these services had been completed. 5. On December 1, the comparry rented additional office space for a sio month period starting on December 1 for $1.200 each month. It paid rent for the months of December and January in advance on this date. Ouellette Corporation began operations on January 2 . Its year end is December 31 , and it adjusts its accounts annually. Selected transactions for the current year follow: 1. On January 2, purchased supplies for $4,100 cash. A physical count at December 31 revealed that $700 of supplies were still on hand. 2. Purchased a vehicle for $45,000 on April 1, paying $5,000 cash and signing a $40,000 bank loan for the balance. The vehicle is estimated to have a useful life of 5 years and the company uses straight-line depreciation. The bank loan has an interest of 3%, payable at maturity. 3. Purchased a $3,600, one year insurance policy for cash on August 1. The policy came into effect on that date. 4. Receiveda $1,600 advance cash payment from a client on November 9 for services to be performed in the future. As at December 31 , half of these services had been completed. 5. On December 1, the company rented additional office space for a six-month period starting on December 1 for $1,200 each month. It paid rent for the months of December and January in advance on this date. Sr Date Account Titles and Explanation no. Debit Credit 1. 2

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions