MorganCompany[1]

MorganCompany[1] - MorganCompany Financial Reporting Case 1...

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Morgan Company Financial Reporting Case 1 Intermediate Accounting Fall 2009 Lippitt
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Morgan Company Year 1 Transactions 1. On January 1, year1, John and Mary Morgan invested $10,000 in cash and a building into their new business. The building had a 10% mortgage of $15,000 with 5 years to go. Morgan Company has assumed responsibility for this mortgage and must make payments of $3,957 every Jan. 15 starting in Year 2. The building has an appraised value of $20,000, a remaining life of 20 years with a salvage value of $2,000. Morgan Company issued 1,000 shares of their $1 par value stock in the transaction. 2. On June 30, year1, Morgan Company purchased office equipment, paying cash of $2,500. The equipment has a 5 year life with no salvage value. 3. On July 1, year1 Morgan purchased office supplies worth $1,200, on account. 4. On August 1, year1, Morgan provided services to a customer on account. The customer agreed to pay $8,000 for the services. 5. On Dec. 1, year1 they paid $2,000 to an employee for services they received from the employee.
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