Ransactions:
1. Tran Lee invested $15,000 cash in the business.
2. Paid $750 rent for the mon...
Ransactions:
1. Tran Lee invested $15,000 cash in the business.
2. Paid $750 rent for the month.
3. Purchased sewing equipment for $1,750.
4. Purchased sewing supplies, $250, on account from Eastern Notions Company.
5. Received $189 for alterations.
6. Completed a large tailoring job and received $1,149 for services.
7. Tran Lee withdrew $200 for personal use.
8. Did tailoring work on account for $256.
9. Paid $150 on account owed to Eastern Notions Company.
(1) Prepare a T account for each account used by Lee's Tailoring Service.
(2) Analyze each transaction and record the transaction in the appropriate T accounts.
(3) After recording all the transactions, compute the balance of each account. Indicate the normal
balance by writing "Balance" on the normal balance side of the account.
(4) Test the equality of debits and credits.
(Record the transactions in the given order. Be sure to list the assets, liabilities and owner's equity in order of their liquidity. Omit the "$" sign in your response.)
General Ledger
Cash in Bank
(1)
$
15,000
(2)
$
750
(5)
189
(3)
1,750
(6)
1,149
(7)
200
(9)
150
Balance $
13,488
Accounts Receivable
(8)
$
256
Balance $
256
Sewing Supplies
(4)
$
250
Balance $
250
Sewing Equipment
(3)
$
1,750
Balance $
1,750
Accounts Payable
(9)
$
150
(4)
$
250
Balance $
100
Tran Lee, Capital
(1)
$
15,000
Balance $
15,000
Tran Lee, Withdrawals
(7)
$
200
Balance $
200
Tailoring Fees
(5)
$
189
(6)
1,149
(8)
256
Balance $
1,594
Rent Expense
(2)
$
750
Balance $
750
Account Name Debit Credit
Cash in Bank
$
13,488
Accounts Receivable
$256
Sewing Supplies
$250
Sewing Equipment
$1,750
Accounts Payable
$100
Rent Expense
750
$
30,338
Cash in Bank
$
$13,488
Accounts Payable
$100
Tran Lee, Capital
$15,000
$
28,588
©2020 McGraw-Hill Education. All rights reserved.
Answers: 3
Business, 21.06.2019 17:40
Carlos would like to start saving for his son’s college expenses. which type of savings account should carlos open? ida money market 529 plan basic savings account
Answers: 2
Business, 22.06.2019 06:40
Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.
Answers: 2
Business, 22.06.2019 08:00
Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?
Answers: 1
Business, 22.06.2019 12:50
Kyle and alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters jane and jill, respectively, to attend the university of california. jane is a sophomore and jill is a freshman. kyle and alyssa's agi is $135,000 and they file a joint return. what is their allowable american opportunity tax credit after the credit phase-out based on agi is taken into account?
Answers: 1
Computers and Technology, 12.08.2020 20:01
Arts, 12.08.2020 20:01
Geography, 12.08.2020 20:01