3-Panda Case - 1 Panda received $9,600 cash in advance for...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The accounting records for Panda Company, Inc. contained the following balances as of December 31, 2001: Assets Liabilities and equity Cash $40,000 Accounts payable $17,000 Accounts receivable 16,500 Contributed capital 45,000 Land 20,000 Retained earnings 14,500 Totals $76,500 $76,500 The following accounting events apply to Panda’s 2002 fiscal year: Jan. 1 The company acquired an additional $20,000 cash from the owners. 1 Panda purchased a computer that cost $17,000 for cash. The computer had a $2,000 salvage value and a 3-year useful life. Mar. 1 The company borrowed $10,000 by issuing a 1-year note at 12%. May 1 The company paid $2,400 cash in advance for a 1-year lease for office space. June 1 The company made a $5,000 cash distribution to the owners. July 1 The company purchased land that cost $10,000 cash. Aug. 1 Cash payments on account payable amounted to $6,000.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Panda received $9,600 cash in advance for 12 months of service to be performed monthly for the next year, beginning on receipt of payment. Sept. 1 Panda sold land for $13,000 cash. The land originally cost $16,000. Oct. 1 Panda purchased $1,300 of supplies on account. Nov. 1 Panda purchased a 1-year, $20,000 certificate of deposit at 6%. Dec. 31 The company earned service revenue on account during the year that amounted to $40,000. 31 Cash collections from accounts receivable amounted to $44,000. 31 The company incurred other operating expenses on account during the year that amounted to $6,000. Also: Salaries that had been earned by the sales staff but not yet paid amounted to $2,300. There was $200 worth of supplies on hand at the end of the period....
View Full Document

This note was uploaded on 05/04/2008 for the course ACCT 3320 taught by Professor Frankzhang during the Summer '06 term at University of Texas at Dallas, Richardson.

Ask a homework question - tutors are online