Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what are total liabilities on the 2019 Balance Sheet? Fox's first year of operations is 2019. Use the following information regarding Fox's activity in 2019
what are total liabilities on the 2019 Balance Sheet?
Fox's first year of operations is 2019. Use the following information regarding Fox's activity in 2019 to answer questions 24-33. 1/1 James Fox started the company by opening business bank account and transferring $ 42,000 to it from his personal bank account. 1/1 Hired employees. Employees will be paid a total of $1,000 per month on the last day of the month. Please note that this payment occurs and an entry is required even though I do not state so explicitly below. 2/1 Fox paid $6,000 cash for an insurance policy covering the next 12- months. At the time Fox debited insurance expense and credited cash for the full amount of $6,000 3/1 Purchased on credit $84,000 for equipment with an 7-year useful life and 0 residual value Fox uses the straight line depreciation method and depreciates long-lived assets from the date of acquisition. 4/1 Purchased $34,000 in inventory on account. 5/1 Sells inventory costing $18,000 for $51,000 in cash. 6/1 Paid for inventory purchased on 4/1. 7/1 Received $7,000 in advance payment from a client for services that will be performed by Fox equally during the months of July 2019 through January 2020. At the time of receipt, Fox debited cash and credited service revenue for $7,000. 9/1 Purchase $2,000 worth of office supplies for cash, debiting Office Supplies and crediting Cash. As of 12/31, $600 of supplies are left. 10/1 Performed services for a client and billed $25,000. 12/31 Salaries owed employees but not yet paid equal $1,000 (payment not made because December 31, is a holiday)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