Expert Computers was started in 2018. The company experienced the following accounting events during its first...

Expert Computers was started in 2018. The company experienced the following accounting events during its first year of operation: Started business when it acquired $40,000 cash from the issue of common stock. Purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. Paid off one-half of the accounts payable balance within the discount period. Sold merchandise on account for $28,000. Credit terms were 1/20, n/30. The merchandise had cost Expert Computers $16,000. Collected cash from the account receivable within the discount period. Paid $2,100 cash for operating expenses. Paid the balance due on accounts payable. The payment was not made within the discount period. Required Record the events in a horizontal statements model below. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event is recorded as an example. What is the amount of gross margin for the period? What is the net income for the period?

Expert Solution

ekkarill92 answered 1 year ago

Maben Company was started on January 1, 2018, and experienced the following events during its first...

Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: Acquired $35,000 cash from the issue of common stock. Borrowed $47,000 cash from National Bank. Earned cash revenues of $63,000 for performing services. Paid cash expenses of $52,500. Paid a $2,500 cash dividend to the stockholders. Acquired an additional $35,000 cash from the issue of common stock. Paid $12,000 cash to reduce the principal balance of the bank note. Paid $46,000...

Finch Manufacturing Company experienced the following accounting events during its first year of operation. With the...

Finch Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP. Acquired $58,000 cash by issuing common stock. Paid $7,100 for the materials used to make its products, all of which were started and completed during the year. Paid salaries of $3,500 to selling and administrative employees. Paid wages of...

Rosie Dry Cleaning was started on January 1, 2018. It experienced the following events during its...

Rosie Dry Cleaning was started on January 1, 2018. It experienced the following events during its first two years of operation: Events Affecting 2018 Provided $32,050 of cleaning services on account. Collected $25,640 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting 2019 Wrote off a $240 account receivable that was determined to be uncollectible. Provided $37,402 of cleaning services on...

Bill Darby started Darby Company on January 1, 2018. The company experienced the following events during...

Bill Darby started Darby Company on January 1, 2018. The company experienced the following events during its first year of operation: 1.Earned $16,200 of cash revenue. 2.Borrowed $12,000 cash from the bank. 3.Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, 2018, had a one-year term and an 8 percent annual interest rate. Required A.What is the amount of interest expense to record for 2018? B.What amount of cash was...

Maben Company was started on January 1, Year 1, and experienced the following events during its...

Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: Acquired $34,000 cash from the issue of common stock. Borrowed $36,000 cash from National Bank. Earned cash revenues of $52,000 for performing services. Paid cash expenses of $47,000. Paid a $1,400 cash dividend to the stockholders. Acquired an additional $24,000 cash from the issue of common stock. Paid $9,000 cash to reduce the principal balance of the bank note. Paid...

Milea Inc. experienced the following events in 2018, its first year of operations:

Milea Inc. experienced the following events in 2018, its first year of operations: Received $14,500 cash from the issue of common stock. Performed services on account for $45,000. Paid the utility expense of $1,200. Collected $30,150 of the accounts receivable. Recorded $7,100 of accrued salaries at the end of the year. Paid a $1,100 cash dividend to the stockholders. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for the 2018 accounting...

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three...

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $31,600, (2) paid cash expenses of $14,200, and (3) paid a $2,500 cash dividend to its stockholders. These were the only events that affected the company during 2018. Required Record the effects of each accounting event under the appropriate general ledger account headings. Prepare an income statement, statement of changes in stockholders’ equity, and a balance sheet...

All-Star Automotive Company experienced the following accounting events during 2018: Performed services for $25,000 cash. Purchased...

All-Star Automotive Company experienced the following accounting events during 2018: Performed services for $25,000 cash. Purchased land for $6,000 cash. Hired an accountant to keep the books. Received $50,000 cash from the issue of common stock. Borrowed $5,000 cash from State Bank. Paid $14,000 cash for salary expense. Sold land for $9,000 cash. Paid $10,000 cash on the loan from State Bank. Paid $2,800 cash for utilities expense. Paid a cash dividend of $5,000 to the stockholders. a) Indicate how...

Johny started Bowling Company on January 1, Year 1. The company experienced the following events during...

Johny started Bowling Company on January 1, Year 1. The company experienced the following events during its first year of operation: Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1, had a one-year term and an 8 percent annual interest rate. Required a. What is the amount of interest payable at December 31, Year 1? b. What...

Cordell Inc. experienced the following events in 2018, its first year of operation: 1. Received $40,000...

Cordell Inc. experienced the following events in 2018, its first year of operation: 1. Received $40,000 cash from the issue of common stock. 2. Performed services on account for $82,000. 3. Paid a $6,000 cash dividend to the stockholders. 4. Collected $76,000 of the accounts receivable. 5. Paid $53,000 cash for other operating expenses. 6. Performed services for $19,000 cash. 7. Recognized $3,500 of accrued utilities expense at the end of the year. Required a. Identify the events that result...

Question