Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

! Required information [The following information applies to the questions displayed below.) RunHeavy Corporation (RHC) is a corporation that manages a local band. It

image text in transcribedimage text in transcribed

! Required information [The following information applies to the questions displayed below.) RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month. a. RHC was formed with an investment of $10,000 cash, paid in by the leader of the band on January 3 in exchange for common stock. b. On January 4, RHC purchased music equipment by paying $2,000 cash and signing an $8,000 promissory note payable in three years. c. On January 5, RHC booked the band for six concert events, at a price of $2,500 each, but no cash was collected yet. d. Of the six events, four were completed between January 10 and 20. e. On January 22, cash was collected for three of the four events. f. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,500 fee for one of them. g. On January 27, RHC paid $3,140 cash for the band's travel-related costs. h. On January 28, RHC paid its band members a total of $2,400 cash for salaries and wages for the first three events. i. As of January 31, the band members hadn't yet been paid wages for the fourth event completed in January, but they would be paid in February at the same rate as for the first three events. j. As of January 31, RHC has not yet recorded the $100 of monthly depreciation on the equipment. k. Also, RHC has not yet paid or recorded the $60 interest owed on the promissory note at January 31. I. RHC is subject to a 15% tax rate on the company's income before tax.

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

Managerial Accounting A Focus on Ethical Decision Making

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

5th edition

324663854, 978-0324663853

More Books

Students also viewed these Accounting questions

Question

What is the meaning of Internal Rate of Return?

Answered: 1 week ago

Question

Show enthusiasm for the position (but not too much).

Answered: 1 week ago