Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This problem is based on the transactions for the FastForward Company in your text. Prepare journal entries for each transaction and identify the financial statement

image text in transcribed
image text in transcribed
This problem is based on the transactions for the FastForward Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded December 1 on December 1, Chas Taylor forns a consulting business, naned FastForward. FastForward receives $30,000 cash from Chas Taylor as an owner contribution December 2 FastForward pays $2,500 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 FastForward pays $26,000 cash for equipment. December 4 FastForward purchases $7.100 of supplies on credit from a supplier, CalTech Supply. December 5 Fast Forward provides consulting services and immediately collects $4,200 cash. December 6 Fast Forward pays $1,000 cash for December rent. December 7 Fast Forward pays $700 cash for employee salary. December 8 Fast Forward provides consulting services of $1,600 and rents its test facilities for $300. The customer is billed $1.988 for these services. December 9 Fast Forward receives $1,900 cash from the client billed on December 8. December 10 FastForward pays CalTech Supply 5900 cash as partial payment for its December 4 $7,100 purchase of supplies December 11 Chas Taylor withdraws $200 cash from FastForward for personal use. December 12 Fast Forward receives $3,000 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. December 13 FastForward pays $2,400 cash (insurance premiun) for 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. December 14 Fast Forward pays $120 cash for supplies. December 15 FastForward pays $305 cash for December utilities expense. December 16 FastForward pays $700 cash in employee salary for work performed in the latter part of December Transaction: Net Income Total Total Assets Liabilities Total Equity Balance sheet Balance sheet Balance sheet 0 $ 30,000 $ 0 $ 0 0 30,000 30,000 30,000 30,000 30,000 0 0 Income Where can you go to find each of your answers? statement December 1 - FastForward receives $30,000 cash from $ Chas Taylor as an owner contribution December 2 - Pays $2,500 cash for supplies. December 3 - Pays $26,000 cash for equipment. December 4 - Purchases $7,100 of supplies on credit from a supplier. December 5 - Provides consulting services and immediately collects $4,200 cash. December 6 - Pays $1,000 cash for December rent December 7. Pays $700 cash for employee salary. December 8 - Provides consulting services of $1,600 and rents its test facilities for $300. The customer is billed $1,900 for these services December 9. Receives $1,900 cash from the client billed on December 8. December 10 - Pays CalTech Supply $900 cash toward the payable from December 4 December 11 - Chas Taylor withdraws $200 cash for personal use. December 12 - Receives $3,000 cash in advance of providing consulting services to a customer. December 13 - Pays $2,400 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1 December 14 - Pays $120 cash for supplies December 15 - Pays $305 cash for December utilities expense December 16 - Pays $700 cash in employee salary for work performed in the latter part of December

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

Corporate Environmental Reporting The Western Approach To Nature

Authors: Leanne J Morrison

1st Edition

0367785455, 9780367785451

More Books

Students also viewed these Accounting questions