ssume you are interviewing for a part-time accounting job at Spilker & Associates, Inc., and the interviewer
Question:
ssume you are interviewing for a part-time accounting job at Spilker & Associates, Inc., and the interviewer gives you the following list of company transactions in September 2003. Sept. 1 Received $150,000 for capital stock issued. 2 Paid $20,000 cash to employees for wages earned in September 2003. 4 . Purchased $75,000 of running shoes and clothing on account for resale. 5 Paid utilities of $1,800 for September 2003. 9 Paid $1,500 cash for September’s insurance premium. 1 Sold inventory of running shoes and clothing costing $35,000 for $70,000, with $20,000 received in cash and the remaining balance on credit. 15 Purchased $2,500 of supplies on account. 21 Received $25,000 from customers as payments on their accounts. 25 Paid $75,000 of accounts payable. 1 Using this list, you have been asked to do the following in the interview: 1. Journalize each of the transactions for September. (Omit explanations.) 2. Set up T-accounts, and post each of the journal entries made in (1). 3. Interpretive Question: If the business owners wanted to know at any given time how much cash the company had, where would you tell the owners to look? Why?
Step by Step Answer:
Financial Accounting
ISBN: 9780324066708
8th Edition
Authors: W. Steven Albrecht, James D. Stice, Earl Kay Stice, K. Fred Skousen, Albrecht S.E.