Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HELP!!! Bob's Chocolate Chips and More, a bakery specializing in gourmet pizza and chocolate chip cookies, started business October 1, 2017 The following transactions

PLEASE HELP!!!

image text in transcribed

image text in transcribed

Bob's Chocolate Chips and More, a bakery specializing in gourmet pizza and chocolate chip cookies, started business October 1, 2017 The following transactions occurred during the month of October. a. Common stock of $90,000 was sold at par to start the business. b. Equipment consisting of mixers and ovens was acquired October 1 for $30,000 cash. The equipment is expected to last five years, after which it is expected to be sold for $5,000. Management uses the straight-line method to calculate depreciation expense. c. Ingredients costing $15,000 were purchased on account during the month and all but $5,000 was paid for by the end of the month. d. Rent is $500 a month. October, November, and December's rent was paid October 5. e. A payment of $800 for utilities was made during the month. f. Sixty percent of the ingredients purchased in part c were prepared and sold for $35,000 on account; $26,000 was collected on accounts receivable during the month. g. Wages of $5,200 were paid during the month. Moreover, wages for the last three days of the month amounted to $400 and will be paid during the first week of November. h. Borrowed $12,000 from the bank for additional working capital requirements, and $3,000 was repaid by month-end. Interest on the unpaid loan balance amounted to $450 at the end of October and was paid on November 5. Required: Prepare the required journal entries and adjusting entries as well as an October income statement and a balance sheet as of October 31, 2017 for Bob's Chocolate Chips and More. (Hint: You may want to consider using T-accounts to classify and accumulate the preceding transactions before preparing the statements.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare Bob's income statement for the month ending October 31, 2017. Bob's Chocolate Chips and More Income Statement For Month Ended October 31, 2017 Less: Operating expenses Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a balance sheet as of October 31, 2017. (Round your final answers to the nearest whole dollar. Amounts to be deducted should be indicated with a minus sign.) Bob's Chocolate Chips and More Balance Sheet October 31, 2017 Assets Total assets Liabilities Total liabilities Shareholders' equity 0 Total shareholders' equity Total liabilities and shareholders' equity

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

Financial Accounting

Authors: Tony Davies, Ian Crawford

1st Edition

0273723073, 9780273723073

More Books

Students also viewed these Accounting questions