Payments made to MERALCO and MAYNILAD are P12,000 and P3,400, respectively. They guaranteed safe passage and provided a guide, Sacajawea. Metro Corporation paid a total of $900 for office salaries. As of October 1, 2017, Starbucks had a total of $1,288,500,000 in stored value card liability. (Solved) - Julia Dumars is a licensed CPA. During the first month of Accounting Principles: A Business Perspective. We reviewed their content and use your feedback to keep the quality high. Remember, all other account balances remain the same. You will write a short description after each journal entry. When filling in a journal, there are some rules you need to follow to improve journal entry organization. b. Pald $2,000 for advertisements in a design magazine. Cash is decreasing, so total assets will decrease by $3,600, impacting the balance sheet. a. Invested $20,000 cash from her personal bank account into the Metro purchased supplies on account from Office Lux for $500. Transaction 12: On January 30, 2019, purchases supplies on account for $500, payment due within three months. $20,000 It is used to prepare the, A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for, A: The correct option is C $81,100. A journal is often referred to as the book of original entry because it is the place the information originally enters into the system. Accounting Study Guide by AccountingInfo.com C) It provides team members an opportunity to acknowledge the assistance of another team member. You will always have at least one credit (possibly more). Metro Courier, Inc., was organized as a corporation on January 1, the company issued shares (10,000 sharesat $3 each) of common stock for $30,000 cash to Ron Chaney, his wife, and their son. Solved Emily Stansbury is a licensed dentist. During the - Chegg The credit column totals $7,500 (300 + 100 + 3,500 + 3,600). Is this treatment appropriate? The company has a liability to the customer until it provides the service. Cash is an asset that increases on the debit side. A) Set clear expectations for each team member, with SMART goals. Motor Vehicle: $30,000, A: Definition: It's important to note that the 4% rule is just a guideline and may not work for . Give the cash balance at the end of the month. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo You can see at the top is the name of the account Cash, as well as the assigned account number 101. Remember, all asset accounts will start with the number 1. Salaries Expense has a debit of $3,600. 3. Wrote a check for the monthly rent, $800. Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January, 2021 and invests cash of RO. Cash is an asset, and assets increase on the debit side. The record is placed on the credit side of the Service Revenue T-account underneath the January 17 record. Include a date of when the transaction occurred. The owner withdrew $600 cash from the business for personal use. During the year, provided $120000 services to customers of which $100,000 was collected, the rest was not yet collected as of Dec. 31st. Journal entry to record the investment by owner Record sale of assets and any resulting gains or losses. The date of each transaction related to this account is included, a possible description of the transaction, and a reference number if available. Skip a space after the description before starting the next journal entry. 726 Salaries Expense, and No. Purchased supplies on account, $1,000 10 4. 400 Service Revenue, No. More revenue will increase net income (earnings), thus increasing retained earnings. Received $5,000 cash for managing rental properties for a client 4. In the journal entry, Utility Expense has a debit balance of $300. Metro paid $5,500 cash for equipment (two computers). Printing Plus provided the services, which means the company can recognize revenue as earned in the Service Revenue account. Credits on the liabilities and equity side of the equation total $34,000 (500 + 4,000 + 20,000 + 9,500). Smartbook Chapter 12: Accounting for Partnerships Flashcards and you must attribute OpenStax. The more earnings you have, the more retained earnings you will keep. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. We want to decrease the liability Accounts Payable and decrease the asset cash since we are not buying new supplies but paying for a previous purchase. Pita generated P75,000 in revenues withP52,000 cash and P23,000 accounts receivable.Cash Accounts Receivable Revenuesd. Lynn asked to be sent a bill for payment at a future date. This is posted to the Common Stock T-account on the credit side (right side). May 12 Hazel received $500 from a client for services provided. The fewer earnings you have, the fewer retained earnings you will end up with. With $20,000 to invest, that equates to about $1,500 to $2,000 per company. NRF Consumer Survey Points to Busy Holiday Season, Backs Up Economic Forecast and Import Numbers. October 27, 2017. https://nrf.com/media-center/press-releases/nrf-consumer-survey-points-busy-holiday-season-backs-economic-forecast, CEB Tower Group. a; an 3) This will increase Salaries Expense, affecting equity. The new corporation purchased new asset (truck) for $8,500 and paid cash. Salon net income for the month is P180,000. Week1-Homework - Mar. 1 invested $20,000 cash in the There are debit and credit columns, storing the financial figures for each transaction, and a balance column that keeps a running total of the balance in the account after every transaction. This is posted to the Cash T-account on the credit side. You can ask a new question or browse more Accounting questions. Supplies is increasing, because the company has more supplies than it did before. See Answer The third step in the accounting cycle is to post journal information to the ledger. 12,000 Invested Cash Definition | Law Insider (Hint: Prepare the T-Account for cash to get the cash balance at the end of the month.) Capital, A: Note:ItisassumedthattherequirementofthequestionistopreparetheJournalentries To further illustrate the analysis of transactions and their effects on the basic accounting equation, we will analyze the activities of Metro Courier, Inc., a fictitious corporation.

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