# Alternate problems alternate problem a preston auto

• Notes
• 115
• 80% (10) 8 out of 10 people found this document helpful

This preview shows page 25 - 27 out of 115 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 66
Intermediate Algebra Within Reach
Larson
Expert Verified
Alternate problemsAlternate problem A Preston Auto Paint Company had the temporary free use of an oldbuilding and completed the following transactions in September 2010:Sept. 1 The company was organized and received USD 100,000 cash from the issuance of capitalstock.5The company bought painting and sanding equipment for cash at a cost of USD 25,000.7The company painted the auto fleet of a customer who agreed to pay USD 8,000 in oneweek. The customer furnished the special paint.14 The company received the USD 8,000 from the transaction of September 7.20Additional sanding equipment that cost USD 2,800 was acquired today; payment waspostponed until September 28.28USD 2,400 was paid on the liability incurred on September 20.30Employee salaries for the month, USD 2,200, were paid.30Placed an order for additional painting equipment advertised at USD 20,000.Prepare a summary of transactions (see Part A of Exhibit 4) for the company for thesetransactions. Use money columns headed Cash, Accounts Receivable, Equipment, AccountsPayable, Capital Stock, and Retained Earnings. Determine balances after each transaction to showthat the basic accounting equation balances.Alternate problem B Quick-Start Home Repair Company completed the following transactionsin June 2010:
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 66
Intermediate Algebra Within Reach
Larson
Expert Verified
June 1 The company was organized and received USD 200,000 cash from the issuance of capitalstock.4The company paid USD 48,000 cash for a truck.7The company borrowed USD 10,000 from its bank on a note.9Cash received for repair services performed was USD 4,500.12Expenses of operating the business so far this month were paid in cash, USD 3,400.18Repair services performed for a customer who agreed to pay within a month amounted toUSD 5,400.25The company paid USD 4,065 on its loan from the bank, including USD 4,050 of principaland USD 15 of interest. (The principal is the amount of the loan. Interest is an expense, whichreduces retained earnings.)30Miscellaneous expenses incurred in operating the business from June 13 to date were USD3,825 and were paid in cash.30An order (contract) was received from a customer for repair services to be performedtomorrow, which will be billed at USD 3,000.a. Prepare a summary of transactions (see Part A of Exhibit 4). Include money columns for Cash,Accounts Receivable, Trucks, Notes Payable, Capital Stock, and Retained Earnings. Determinebalances after each transaction to show that the basic accounting equation balances.b. Prepare a balance sheet as of 2010 June 30.Alternate problem C Following are summarized transaction data for Luxury Apartments, Inc.,for the year ending 2010 June 30. The company owns and operates an apartment building.Rent revenue from building ownedUSD 150,000Building repairs2870Building cleaning, labor cost3185Property taxes on the building4000Insurance on the building1225Commissions paid to rental agent5000Legal and accounting fees (for preparation oftenant leases)1260Utilities expense8225Cost of new awnings (installed on June 30, will last 10 years)5000Of the USD 150,000 rent revenue, USD 5,000 was not collected in cash until 2010 July 5.