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Problem 1. (20 points) You formed a company to provide mobile apps design services. Below are the accounts that you use to record transactions in
Problem 1. (20 points) You formed a company to provide mobile apps design services. Below are the accounts that you use to record transactions in your company. 101. Cash 301. Paid-in Capital 102. Accounts Receivable 302. Retained Earning 103. Equipment 401. Sales 201. Accounts Payable 501. Salary Expense 202. Note Payable 502. Rental and Facility Expenses 503. Depreciation Expense Your company began operation in 2019 and the first two transactions are: 1. January 2, 2019: You injected capital of $6,000 and hired a programmer Credit Account Cash 301. Paid-in Capital (You) 101. Debit $5,000 $5,000 2. January 3, 2019: Cash purchase of computers for apps development for $3,600 Account Debit 101. Cash 103. Equipment (computers) $3,600 Credit $3,600 The followings are all the transactions that occur in January 2019. For each transaction, show the accounts to be debited and credited, and the corresponding amount. a) (2 pts) January 25: You completed and shipped apps to Client X and invoiced client X for $3,100. Indicate the debit and credit amount in the two accounts given. Account Debit Credit 102 Accounts Receivable 401 Sales b) (2 pts) January 27: Received cash payment of $3,100 from Client X Indicate the accounts as well as the debit/credit amount Account Debit Credit c) (2 pts) January 30: Pay salary of $2,000 in cash to programmer. Account Debit Credit d) (2 pts) January 31: Received invoice for rental charge of $300 for January. The expense is recognized but not yet paid. Account Debit Credit e) (2 pts) January 31: Record depreciation of $100 in computers for the month Account Debit Credit f) (1 pts) Which transaction(s) in a), b), c), d), e) above is an investing" activity? g) (2 pts) January 31: You zeroed out your expense and revenue accounts and "balanced the book". Show how much you will debit or credit each of the following accounts below: Debit Credit Account 401. Sales 501. Salary Expense 502. Rental and Facility Expenses 503. Depreciation Expense 302. Retained Earnings h) (6 pts) List all Assets, Liabilities, and Owner Equity on your balance sheet at the end of January? Assets Balance Liabilities Balance Owner Equity Balance i) (1 pt) On January 31. your company was acquired by Softbank for $20,000. What is the amount of goodwill that is produced on Softbank's balance sheet
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