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ime midterm cheat sheet1

ime midterm cheat sheet1 - 5 Paid the assistant’s salary...

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Kirk Flores Balance Sheet For Period Ending December 31, 2006 Assets Liabilities Current Assets Current Liabilities Cash 1000 Account Payable 500 Accounts Receivable 800 Short Tem Notes 200 Inventory Total Current Liabilities 700 (10 packages at $20 each) 200 Total Current Assets 2000 Long Term Debt 2000 Total Liabilities 2700 Office Equipment 1500 Accumulated Depreciation (250) Equity Net Equipment 1250 Invested Capital 300 Other long Term Assets 50 Retained Earnings 300 Total Long Term assets 1300 Total Equity 600 Total Assets 3300 Total Liabilities and Equity 3300 A. (10 points) During the Month of January 2007 the following transactions occurred. Record these transactions on T- accounts. 1) Purchased a computer for use in the business costing $1500 with a long term loan. 2) Sold one software package for $100 cash 3) Billed a client for $600 for consulting work completed 4) Received $350 payment from a client for consulting work previously done.
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Unformatted text preview: 5) Paid the assistant’s salary of $1500 cash. 6) Purchased 5 software packages for $20 each from a supplier on credit. 7) Paid insurance for three months (January, February and March) totaling $450 ($150 per month) cash 8) Spent $50 on dinner with a client. 9) Paid loan payment of $200: $50 interest, $150 principle 10) Paid rent of $500 11) Did consulting work and received $2000 cash 12) Paid $100 on the Short Term note. 13) Booked $50 of deprecation for the period 14) Receive another long term loan for $2000 15) Kirk withdrew $100 from the business for his owe use. 16) Kirk paid $500 to the bank in order to pay off a long term loan. Because he paid it early, he was also charged $50 as an early payment penalty. This penalty he paid in cash....
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