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The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,170 shares of $1 par value common
The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,170 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,200 of equipment, paying $1,500 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $7,000 cash from a bank. d. Loaned $1,100 to an employee who signed a note due in six months. e. Purchased $16,888 of land; paid $6,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank. Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Recelved a $530 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $850 for rent in January. d. Received $7,300 from customers as payment on their accounts. e. Received an electric and gas utility bill for $480 to be paid in February. f. Ordered $870 in supplies. g. Paid $2,040 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $960 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,600 in wages to employees who worked in January. j. Declared and paid a $2,500 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $340 in interest expense on the long-term note payable. Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes)
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