Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 4 (18 marks) (32 minutes) Victor Strait opened an architecture company, the following transactions were completed during December 20x8. Dec 1 Dec 1 Dec

image text in transcribed
image text in transcribed
Problem 4 (18 marks) (32 minutes) Victor Strait opened an architecture company, the following transactions were completed during December 20x8. Dec 1 Dec 1 Dec 1 Dec 3 Issued 100 common shares of the new company, Strait Ltd., to Victor Strait in exchange for $6,000 cash. Signed a lease for office space paying the first and last months rent on a one year lease. The monthly rent is $1,000. Purchased a two year insurance policy for $1,560 that expires on November 30, 20x10. The policy is effective as at Dec 1, 20x8. Purchased the office furniture and equipment of a retiring architect for $4,000, paying $1,000 in cash and agreeing to pay the balance in six months. Victor estimated the office equipment and furniture had a useful life of 5 years. Completed work for a client and immediately collected $680 in cash for the work done. Completed work for JP Developers and sent them an invoice for $1,875 Dec 7 Dec 13 Dec 17 Purchased office supplies on credit for $300. Received S1,875 from JP Developers for the work completed on Dec. 13. Dec 28 Dec 31 Paid $1,300 cash to the office secretary for December's wages, MOTO a one year lease. The monthly rent is $1,000. Dec 1 Dec 3 Dec 7 Purchased a two year insurance policy for $1,560 that expires on November 30, 20x10. The policy is effective as at Dec 1, 20x8. Purchased the office furniture and equipment of a retiring architect for $4,000, paying $1,000 in cash and agreeing to pay the balance in six months. Victor estimated the office equipment and furniture had a useful life of 5 years. Completed work for a client and immediately collected $680 in cash for the work done. Completed work for JP Developers and sent them an invoice for $1,875. Purchased office supplies on credit for $300. Received 1,875 from JP Developers for the work completed on Dec. Dec 13 Dec 17 Dec 28 13. Dec 31 Dec 31 Paid $1,300 cash to the office secretary for December's wages. Performed a count of office supplies, which revealed that $200 of the $300 worth of office supplies purchased on December 17 were still on hand. Required - Prepare journal entries to record the above transactions including any adjusting entries required at December 31

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

Step: 3

blur-text-image

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

Question

1. Describe the power of nonverbal communication

Answered: 1 week ago