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In: Accounting
Question 1 Fantastic Fashions has just completed its first quarter of operations. Below are transactions that...
Question 1
Fantastic Fashions has just completed its first quarter of
operations. Below are transactions that have not yet been recorded.
Prepare the journal entries listed below.
Jan 1 Pre-tax cash sales amounted to
$75,000. HST is collected on all sales at a rate of 13%.
Jan 15 Signed a three month note for
$12,000 to extend amounts owing on account to Trendy Taste Inc.
Interest is 6% annually and due at maturity.
Mar 1 Received the annual property tax
bill for $7,500 payable on June 1.
Apr 1 Paid salaries of $10,000; of this
amount $495 is CPP, $178 is EI and $3,465 is for income taxes
(record the employer portion as well).
Apr 15 Paid the note due.
Apr 29 A customer sued Fantastic Fashions
for $200,000. Legal counsel has advised that it is unlikely damages
will be awarded.
Jun 1 Paid the property taxes bill in
full.
Solutions
Expert Solution
The journal entries are attached in below picture
If you have any doubt or the answer provided by me is not as per your required format, feel free to send me a comment before rating my answer, i will clarify your doubt.
ekkarill92 answered 2 years agoRelated Solutions
Question 1 Fantastic Fashions has just completed its first quarter of operations. Below are transactions that...
Question 1
Fantastic Fashions has just completed
its first quarter of operations. Below are transactions that have
not yet been recorded. Prepare the journal entries listed
below.
Jan 1 Pre-tax cash sales amounted to $75,000.
HST is collected on all sales at a rate of 13%.
Jan 15 Signed a three month note for $12,000 to extend amounts
owing on account to Trendy Taste Inc. Interest is 6% annually and
due at maturity.
Mar 1...
QUESTION 3 (12 marks) Part A: Ranier Ltd. has just completed its first year of operations...
QUESTION 3
Part A: Ranier Ltd. has just completed its first year of operations
on December 31, 20X1. Net income for the year was $570. During the
year, equipment costing $800 was purchased when the company paid
cash of $640 and issued common shares worth $160. Near the end of
the year, equipment costing $60 with accumulated depreciation of
$16 was sold for $54. At the end of the year, accounts receivable
was $250, accounts payable was $36 and accumulated...
Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal...
Flaherty, Inc., has just completed its first year of operations.
The unit costs on a normal costing basis are as follows:
Manufacturing costs (per unit):
Direct materials (2 lbs. @ 1.45): $2.90
Direct labor (0.4 hr. @ 16.00): $6.40
Variable overhead (0.4 hr. @ 5.00): $2.00
Fixed overhead (0.4 hr. @ 7.00): $2.80
Total: $14.10
Selling and administrative costs:
Variable: $1.90 per unit
Fixed: $221,500
During the year, the company had the following activity:
Units produced: 26,000
Units sold: 23,400...
Bellingham line has just completed its first year operations. The unit costs on a normal costing...
Bellingham line has just completed its first year operations.
The unit costs on a normal costing
basis are as follows:
Manufacturing cost per unit
Direct materials (2kgs @ $2) $4.00
Direct hours (1.5hrs @ $9) $13.50
Variable overhead (1.5hrs @ $2) $3.00
Fixed overhead (1.5hrs @$3) $4.50
Total $25.00
Selling and administrative costs:
Variable cost per unit
$5.00
Fixed cost $190.00
During the year the company had the following activities:
Units produced 24 000
Units sold 21 500
Unit selling...
Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1....
Part A: Ranier Ltd. has just completed its first year of
operations on December 31, 20X1. Net income for the year was $570.
During the year, equipment costing $800 was purchased when the
company paid cash of $640 and issued common shares worth $160. Near
the end of the year, equipment costing $60 with accumulated
depreciation of $16 was sold for $54. At the end of the year,
accounts receivable was $250, accounts payable was $36 and
accumulated depreciation was...
Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1....
Part A: Ranier Ltd. has just completed its first year of operations
on December 31, 20X1. Net income for the year was $570. During the
year, equipment costing $800 was purchased when the company paid
cash of $640 and issued common shares worth $160. Near the end of
the year, equipment costing $60 with accumulated depreciation of
$16 was sold for $54. At the end of the year, accounts receivable
was $250, accounts payable was $36 and accumulated depreciation was...
BizCon, a consulting firm, has just completed its first year of operations. The company’s sales growth...
BizCon, a consulting firm, has just completed its first year of
operations. The company’s sales growth was explosive. To encourage
clients to hire its services, BizCon offered 180-day
financing—meaning its largest customers do not pay for nearly 6
months. Because BizCon is a new company, its equipment suppliers
insist on being paid cash on delivery. Also, it had to pay up front
for 2 years of insurance. At the end of the year, BizCon owed
employees for one full month...
Scenario: BizCon, a consulting firm, has just completed its first year of operations. The company's sales...
Scenario: BizCon, a consulting firm, has just
completed its first year of operations. The company's sales growth
was explosive. To encourage clients to hire its services, BizCon
offered 180-day financing - meaning its largest customers do not
pay for nearly 6 months. Because BizCon is a new company, its
equipment suppliers insist on being paid cash on delivery. Also, it
had to pay up front for 2 years of insurance. At the end of the
year, BizCon owed employees for...
SnapShot Company, a commercial photography studio, has just completed its first full year of operations on...
SnapShot Company, a commercial photography studio, has just
completed its first full year of operations on December 31, 2015.
General ledger account balances before year-end
adjustments follow; no adjusting entries have been made to the
accounts at any time during the year. Assume that all balances are
normal.
Cash
$2,150
Accounts Payable
$1,910
Accounts Receivable
3,800
Unearned Photography Fees
2,600
Prepaid Rent
12,600
Common Stock
24,000
Prepaid Insurance
2,970
Photography Fees Earned
34,480
Supplies
4,250
Wages Expense
11,000
Equipment
22,800...
Question 1. Company Z had the following transactions in its first year of operations: (1) On...
Question 1.
Company Z had the following transactions in its first year of
operations:
(1) On January 15, purchased 5,000 units of inventory for $20
each
(2) On March 1, purchased 10,000 units of inventory for $22
each
(3) On March 30, sold 7,000 units of inventory for $48 each
(4) On June 20, purchased 9,000 units of inventory for $25
each
(5) On August 10, sold 12,000 units of inventory for $50
each
(6) On September 3, sold 1,000...
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