I-04.05 Problem

I-04.05 Problem - I-04.05 On January 1, 20X7, Jacqueline...

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I-04.05 On January 1, 20X7, Jacqueline Fernandez formed a corporation to purchase wheat harvesting equipment and provide contract support services to farmers throughout the Midwest. Information about the first year of operation follows: Jan. 1 Investors provided $2,500,000 of cash in exchange for stock of Fernandez Corporation. Jan. 1 Purchased combines and trucks in exchange for $1,000,000 cash and a $3,000,000 note payable. Feb. 7 Purchased $40,000 of supplies on account that will be needed during the upcoming harvest. Mar. 3 Paid wages of $65,400. Apr. 1 Billed customers for services in the amount of $230,000. Apr. 11 Paid $30,000 toward the purchase of February 7. May 1 Purchased a $24,000 insurance policy. This transaction was recorded as prepaid insurance. June 6 Collected $210,000 on accounts receivable. June 9 Paid wages of $130,600. June 15 Paid $30,200 for fuel costs. June 20 Paid $12,500 for lodging costs incurred by crew.
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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I-04.05 Problem - I-04.05 On January 1, 20X7, Jacqueline...

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