refund question

The Gater Company was incorporated on November 1, 20X1. Gater had 40 holders of common stock. Jack Gater, who was the president and CEO, held 53% of the shares. The company rented space in chain discount stores and specialized in selling running shoes, Gater's first location was a store in Millcreek Mall. The following events occurred during November: (Click the icon to view the events.) The Gater Company prepared the following accrual-basis income statement and analysis of its transactions for the month of November. (Click the icon to view the accrual-method income statement.) : (Click the icon to view the transaction analysis.) Requirements 1. If Gater Company measured income on the cash basis, what revenue would be reported for November? Requirement 1. If Gater Company measured income on the cash basis, what revenue would be reported for November? Cash basis revenue for November = $ More Info a. The company was incorporated. Common stockholders invested $150,000 cash. b. Purchased merchandise inventory for cash, $50,000. C. Purchased merchandise inventory on open account, $30,000. d. Merchandise carried in inventory at a cost of $35,000 was sold for $120,000 $20,000 for cash and $100,000 on open account. Gater carries and will collect these accounts receivable. e. Collection of a portion of the preceding accounts receivable, $18,000. f. Payments of a portion of accounts payable, $18,000. See transaction c. g. Special display equipment and fixtures were acquired on November 1 for $24,000. Their expected useful life was 24 months with no terminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Gater paid $12,000 as a down payment and signed a promissory note for $12,000. h. On November 1, Gater signed a rental agreement with Millcreek Mall. The agreement called for rent of $2,100 per month, payable quarterly in advance. Therefore, Gater paid $6,300 cash on November 1. 1. The rental agreement also called for a payment of 5% of all sales. This payment was in addition to the flat $2,100 per month. In this way, Millcreek Mall would share in any success of the venture and be compensated for general services such as cleaning and utilities. This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Gater made the payment on November 30. j. Wages, salaries, and sales commissions were all paid in cash for all earnings by employees. The amount was $44,000. k. Depreciation expense for November was recognized. See transaction g. 1. The expiration of an appropriate amount of prepaid rental services was recognized. See transaction h. Print Done remaining GILETTA i Data Table - Ga sad (CI he sad quir If G Nov Gater Company Income Statement Month ending November 30, 20X1 quir porte Sales $ 120,000 e sh b Expenses: Cost of goods sold Wages, salaries, and commissions Rent 35,000 44,000 8,100 1,000 Depreciation Total expenses 80,100 Net income (loss) $ 31,900 Print Done Data Table Stockholders' Assets = Liabilities + equity Equip Paid- Merch Prepaid and in Retained Cash + A/R + inventory + rent + fixtures = A/P + N/P + capital + earnings 150 150 a. = b. (50) 50 C 30 30 d.1. 20 + 100 120 R d.2. (35) (35) E e. f. (18) g. 18 + (18) (18) (12) (6) (6) 24 = 12 h. 6 11 i. j. (44) (6) E (44) E (1) E k. 1 (2) = (2) E 52 52 Bal 82 + 45 23 12 12 12 150 32 +