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Homework 2 - They pay a hotel $975 cash to rent a small...

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Homework 2 – The Accounting Cycle 1. Prepare journal entries to record each of the following. If no journal entry would be necessary, write “No entry required.” a. Hart Co. purchases equipment for $11,000 cash. b. James Co. hires a new CEO. c. Murphy & Murphy, LLC writes a check to a local newspaper for $475. The payment is for an advertisement that will run next month. d. PXR, Inc. is an architectural firm. It receives a check from one of its clients for $67,219. $47,219 is payment for an outstanding amount due on a bill for services that were previously provided. The remainder is an advance on the next project PXR is going to do for the client, but has not begun yet. e. Garner and Associates hosts a project completion party for its employees.
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Unformatted text preview: They pay a hotel $975 cash to rent a small ballroom, and a caterer provides food on account at a cost of $1,350. f. GCL Corp. issues stock with no par value for $1,700,000 to new stockholders in a seasoned equity offering. g. Max’s Mini-Mart sells goods priced at $10.00 for cash, and also collects 6% Michigan sales tax. (Ignore any cost of goods sold aspect of the transaction.) 2. Describe the transaction that likely resulted in the preparation of each of the following journal entries. a. Cash 3,000 Accounts receivable 3,000 b. Prepaid rent 11,200 Cash 11,200 c. Land 80,000 Common stock 80,000 d. Accounts payable 720 Inventory 720...
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