Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The company underwent a major expansion in July. New staff was hired and more financing was obtained. Concord conducted the following transactions during July 2017,
The company underwent a major expansion in July. New staff was hired and more financing was obtained. Concord conducted the following transactions during July 2017, and adjusts its accounts monthly.
July | 1 | Purchased equipment, paying $ 4,400 cash and signing a 2-year note payable for $ 22,000. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following month. | |
2 | Issued 22,000 shares of common stock for $ 55,000 cash. | ||
3 | Paid $ 4,200 cash for a 12-month insurance policy effective July 1. | ||
3 | Paid the first 2 (July and August 2017) months rent for an annual lease of office space for $ 4,400 per month. | ||
6 | Paid $ 4,200 for supplies. | ||
9 | Visited client offices and agreed on the terms of a consulting project. Concord will bill the client, Connor Productions, on the 20th of each month for services performed. | ||
10 | Collected $ 1,320 cash on account from Milani Brothers. This client was billed in June when Concord performed the service. | ||
13 | Performed services for Fitzgerald Enterprises. This client paid $ 1,230 in advance last month. All services relating to this payment are now completed. | ||
14 | Paid $ 440 cash for a utility bill. This related to June utilities that were accrued at the end of June. | ||
16 | Met with a new client, Thunder Bay Technologies. Received $ 13,200 cash in advance for future services to be performed. | ||
18 | Paid semi-monthly salaries for $ 12,100. | ||
20 | Performed services worth $ 30,800 on account and billed customers. | ||
20 | Received a bill for $ 2,400 for advertising services received during July. The amount is not due until August 15. | ||
23 | Performed the first phase of the project for Thunder Bay Technologies. Recognized $ 11,000 of revenue from the cash advance received July 16. | ||
27 | Received $ 16,500 cash from customers billed on July 20. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started