Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
please answer all the questions given. Problems P7.1 Biando Corporation began operations on May 1, 2018, and completed the following transac- L0 1 tions during
please answer all the questions given. Problems P7.1 Biando Corporation began operations on May 1, 2018, and completed the following transac- L0 1 tions during its first month of operations. L0 2. A. Sold capital stock for $30,000. B. Purchased land and a building valued at $35,000 and $165,000, respectively, by paying $10,000cash and signing a 20-year mortgage for the balance. C. Purchased office equipment on account, $7,500. D. Billed a customer for services performed, $5,000. E. Received an $800 deposit from a customer for services to be performed next month. F. Made a partial payment on account for the office equipment purchased in transaction (C), $1,500. G. Performed a service and immediately collected $2,000. H. Received and immediately paid the telephone bill for the month, $380. 1. Paid a dividend to owners, $3,000. J. Received, but did not pay, the monthly utility bill, $450. Required: 1. Determine the effect of each of the preceding events on the accounting equation. 2. Prepare the general journal entries to record each of these events. Note: You may want to set up T-accounts to keep trick of some accounts. Do not prepare adjusting entries. 3. Prepare the incomestatement for the period. 4. Prepare the statement of retained earnings for the period. 5. Prepare the statement of cash flows for the period. 6. Prepare the balance sheet at the end of the period. 7. Prepare the closing entries. Problems P7.1 Biando Corporation began operations on May 1, 2018, and completed the following transac- L0 1 tions during its first month of operations. L0 2. A. Sold capital stock for $30,000. B. Purchased land and a building valued at $35,000 and $165,000, respectively, by paying $10,000cash and signing a 20-year mortgage for the balance. C. Purchased office equipment on account, $7,500. D. Billed a customer for services performed, $5,000. E. Received an $800 deposit from a customer for services to be performed next month. F. Made a partial payment on account for the office equipment purchased in transaction (C), $1,500. G. Performed a service and immediately collected $2,000. H. Received and immediately paid the telephone bill for the month, $380. 1. Paid a dividend to owners, $3,000. J. Received, but did not pay, the monthly utility bill, $450. Required: 1. Determine the effect of each of the preceding events on the accounting equation. 2. Prepare the general journal entries to record each of these events. Note: You may want to set up T-accounts to keep trick of some accounts. Do not prepare adjusting entries. 3. Prepare the incomestatement for the period. 4. Prepare the statement of retained earnings for the period. 5. Prepare the statement of cash flows for the period. 6. Prepare the balance sheet at the end of the period. 7. Prepare the closing entries
please answer all the questions given.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started