Question

In: Accounting

[The following information applies to the questions displayed below.] On January 1, 2018, Brown Co. borrowed...

[The following information applies to the questions displayed below.]

On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $66,500 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $20,078 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $30,590 cash per year.

Problem 7-30 Part b

  1. Organize the information in accounts under an accounting equation. (Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles / Retained Earnings, leave the cell blank.)
  2. BROWN CO.
    Effect of Events on the Accounting Equation
    2018, 2019, 2020 and 2021
    Event Assets = Liabilities + Stockholders' Equity Accounts Titles / Retained Earnings
    Cash + Land = Notes Payable + Retained Earnings
    2018
    1/1 + = +
    1/1 + = +
    12/31 + = +
    12/31 + = +
    Bal. 0 + 0 = 0 + 0
    2019
    Beg. bal. + = +
    12/31 + = +
    12/31 + = +
    End. bal. 0 + 0 = 0 + 0
    2020
    Beg. bal. + = +
    12/31 + = +
    12/31 + = +
    End. bal. 0 + 0 = 0 + 0
    2021
    Beg. bal. + = +
    12/31 + = +
    12/31 + = +
    End. bal. 0 + 0 = 0 + 0

Solutions

Expert Solution

ekkarill92 answered 3 weeks ago
Next > < Previous

Related Solutions

The following information applies to the questions displayed below.]    On January 1, 2018, the general...
The following information applies to the questions displayed below.]    On January 1, 2018, the general ledger of Dynamite Fireworks includes the following account balances:      Accounts Debit Credit   Cash $ 24,700   Accounts Receivable 6,100   Supplies 4,000   Land 59,000   Accounts Payable 4,100   Common Stock 74,000   Retained Earning 15,700        Totals $ 93,800 $ 93,800    During January 2018, the following transactions occur:    January 2. Purchase rental space for one year in advance, $8,700 ($725/month). January 9. Purchase additional supplies on...
The following information applies to the questions displayed below.]    On January 1, 2018, the general...
The following information applies to the questions displayed below.]    On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances:      Accounts Debit Credit   Cash $ 26,800   Accounts Receivable 49,600   Allowance for Uncollectible Accounts $ 5,900   Inventory 21,700   Land 63,000   Equipment 23,500   Accumulated Depreciation 3,200   Accounts Payable 30,200   Notes Payable (6%, due April 1, 2019) 67,000   Common Stock 52,000   Retained Earnings 26,300        Totals $ 184,600 $ 184,600    During January 2018, the following transactions occur:...
[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger...
[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:   Accounts Debit Credit   Cash $ 26,700   Accounts Receivable 15,000   Allowance for Uncollectible Accounts $ 3,600   Supplies 3,900   Notes Receivable (6%, due in 2 years) 18,000   Land 80,300   Accounts Payable 8,500   Common Stock 98,000   Retained Earnings 33,800        Totals $ 143,900 $ 143,900 During January 2018, the following transactions occur:    January 2 Provide services to customers...
Required information [The following information applies to the questions displayed below.] In January 2017, Mitzu Co....
Required information [The following information applies to the questions displayed below.] In January 2017, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $854,000, with a useful life of 20 years and a $90,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at...
[The following information applies to the questions displayed below.]    On July 1, 2018, Tony and...
[The following information applies to the questions displayed below.]    On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31.    The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will...
[The following information applies to the questions displayed below.]    On July 1, 2018, Tony and...
[The following information applies to the questions displayed below.]    On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31.    The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will...
[The following information applies to the questions displayed below.] At the end of January of the...
[The following information applies to the questions displayed below.] At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $16.80 per unit: Transactions Units Amount Inventory, January 1 690 $ 3,105 Purchase, January 12 660 4,290 Purchase, January 26 220 1,870 Sale (550) Sale (200) Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 26,700 Accounts Receivable 49,400 Allowance for Uncollectible Accounts $ 5,800 Inventory 21,600 Land 62,000 Equipment 23,000 Accumulated Depreciation 3,100 Accounts Payable 30,100 Notes Payable (6%, due April 1, 2022) 66,000 Common Stock 51,000 Retained Earnings 26,700 Totals $ 182,700 $ 182,700 During January 2021, the following transactions occur: January...
Required information [The following information applies to the questions displayed below.] On January 1, when the...
Required information [The following information applies to the questions displayed below.] On January 1, when the market interest rate was 9 percent, Seton Corporation completed a $260,000, 8 percent bond issue for $243,312. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. rev: 04_29_2019_QC_CS-166541 Prepare a bond discount amortization schedule for these bonds. (Do not round intermediate calculations. Round your answers to the nearest dollar.)
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,300 Accounts Receivable 46,600 Allowance for Uncollectible Accounts $ 4,400 Inventory 20,200 Land 48,000 Equipment 16,500 Accumulated Depreciation 1,700 Accounts Payable 28,700 Notes Payable (6%, due April 1, 2022) 52,000 Common Stock 37,000 Retained Earnings 32,800 Totals $ 156,600 $ 156,600 During January 2021, the following transactions occur: January...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT