Question

In: Accounting

January 1:       The owners hire Lisa Marton to manage the store, paying her a salary...

January 1:       The owners hire Lisa Marton to manage the store, paying her a salary of $2,800 a month. Lisa is paid on the 1st of every month, starting on February 1 (which would represent her January pay). They have one other employee who they pay $2,000 a month, also on the 1st of the following month.

January 14:     Paid utilities for 4th quarter of 2017, $875.

February 1:     Installed new light fixtures and display cases in the leased store. CWB paid $1,700 for the fixtures, $200 for shipping to the store, and $700 to an electrician to install. The landlord gave CWB permission to remove and dispose of the old fixtures. CWB sold the old fixtures for $180. CWB anticipates being in the store for at least 4 years. CWB cannot take the light fixtures with them if they relocate as they will revert to the lessor.

CWB can take the display cases, which cost $5,400, if they move.

Both the display cases and light-fixtures have a six-year useful life.

March 1:          CWB invests in a $2,000 3-month treasury bill paying interest of 2.0%

March 12:        One of the standard bikes sold was returned by the customer. The bike sold for $225. CWB paid $80 for it. CWB provided a full refund. CWB’s policy is to provide a customer with a full refund within 30 day of purchase as long as the bike is returned in good condition. While the bike is in good working condition, CWB does not anticipate being able to sell the bike as new – rather it anticipates marking it down and selling it for $150.

March 24:        A customer puts down a deposit of $300 on a high-end racing bike that sells for $2,850. CWB ordered the bike from the manufacturer. The manufacturer promises CWB will have the bike at the store on April 3.

Here is other information on other activity and recurring transactions that occurred during the period.

-CWB rents its premises for $1,500 per month, with rent due on the 15st of the prior month.

-CWB has a business insurance policy, which it purchased for $5,280 on May 1, 2017. The policy runs till April 30, 2018.

CWB has a $15,000 loan outstanding at an interest rate of 12% a year, with annual interest due on January 1. The loan matures on January 1, 2021.

Please provide all the journal entries!

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

January 1: The owners hire Lisa Marton to manage the store, paying her a salary of...
January 1: The owners hire Lisa Marton to manage the store, paying her a salary of $3,000 a month. Lisa is paid on the 1st of every month, starting on February 1 (which would represent her January pay). They have one other employee who they pay $2,000 a month, also on the 1st of the following month. January 14: Paid utilities for 4th quarter of 2017, $875. February 1: Installed new light fixtures and display cases in the leased store....
In January, Ms. NW projects that her employer will withhold $25,000 from her 2019 salary. However,...
In January, Ms. NW projects that her employer will withhold $25,000 from her 2019 salary. However, she has income from several other sources and must make quarterly estimated tax payments. Compute the quarterly payments that result in a 2019 safe-harbor estimate assuming that her 2018 AGI was $176,000, and her tax was $47,200. Compute the quarterly payments that result in a 2019 safe-harbor estimate assuming that her 2018 AGI was $139,000, and her tax was $36,800.
Managing the Store    Ruth Cummings, on her first day of work on 1st January, was...
Managing the Store    Ruth Cummings, on her first day of work on 1st January, was formally named branch manager for the new Saks Fifth Avenue branch store in Washington. Her boss, Ken Hoffman added, "Ruth, I'm putting you in charge of this store. Your job will be to run it so that it becomes one of the best stores in the system. I have a lot of confidence in you, so don't let me down."    One of the...
Lisa Limited Pty Ltd purchases a new equipment on 1 January 2015. The equipment cost was...
Lisa Limited Pty Ltd purchases a new equipment on 1 January 2015. The equipment cost was $200,000 and useful life was 10 years with zero residual value. On January 1, 2019, the company decides that the equipment will last total 20 years rather than 10 years. The company uses straight-line method of depreciation and the fiscal year end is 31 December. Required: Calculate depreciate for 2015, 2016, 2017 and 2018. How will the equipment be reported on the balance sheet...
On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well...
On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well as 60 percent of its preferred shares. Mona paid $76,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 40 percent of the preferred shares traded at a $45,000 fair value. Mona paid $588,000 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a...
On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well...
On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well as 60 percent of its preferred shares. Mona paid $69,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 40 percent of the preferred shares traded at a $38,000 fair value. Mona paid $580,000 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a...
On January 1, 2013, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well...
On January 1, 2013, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well as 60 percent of its preferred shares. Mona paid $65,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 40 percent of the preferred shares traded at a $34,000 fair value. Mona paid $552,800 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a...
On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well...
On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well as 60 percent of its preferred shares. Mona paid $78,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 40 percent of the preferred shares traded at a $47,000 fair value. Mona paid $584,000 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a...
1. n 2017, Nina contributes 11 percent of her $126,000 annual salary to her 401(k) account....
1. n 2017, Nina contributes 11 percent of her $126,000 annual salary to her 401(k) account. She expects to earn a 10 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax accumulation from her 2017 contributions to her 401(k) account? (Use Table 1, Table 2, Table 3, Table 4.) (Round your intermediate calculations and final answers to the nearest whole dollar amount. Round...
1 January 1, 2015 Rosen and the other owners invest $50,000 in exchange for corporate stock in the firm.
  How can I put the information below in these 7 accounts? Trial balance   adjustment   adjustment trial balance   income statement   balance sheet   closing   post-closing balance sheet   Debit credit debit credit debit credit debit credit debit credit debit credit debit credit                             1 January 1, 2015 Rosen and the other owners invest $50,000 in exchange for corporate stock in the firm.2...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT