Business, 18.01.2021 22:50 crawfordricky84

Sunland Company entered into these transactions during May 2022, its first month of operations. 1. Stockholders invested $38,000 in the business in exchange for common stock of the company. 2. Purchased computers for office use for $34,000 from Ladd on account. 3. Paid $2,200 cash for May rent on storage space. 4. Performed computer services worth $19,500 on account. 5. Performed computer services for Wharton Construction Company for $6,400 cash. 6. Paid Western States Power Co. $8,200 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $3,300 on account. 9. Received $12,700 cash from customers for contracts billed in (4).

Answers: 2

Show answers

Answers

Answer from: sugandiwoodbine

Question Completion:

Show the effect of each transaction on the accounting equation.

Sunland Company

1. Stockholders' investment in the business = $38,000

Assets (Cash + $38,000) = Liabilities + Equity (Common Stock + $38,000)

2. Office Computers purchased on account from Ladd = $34,000

Assets (Equipment + $34,000) = Liabilities (Accounts Payable + $34,000) + Equity

3. Cash payment for May Rent = $2,200

Assets (Cash -$2,200) = Liabilities + Equity (Retained Earnings - $2,200)

4. Computer services performed on account = $19,500

Assets (Accounts Receivable + $19,500) = Liabilities + Equity (Retained Earnings + $19,500)

5. Computer services performed for cash = $6,400

Assets (Cash + $6,400) = Liabilities + Equity (Retained Earnings + $6,400)

6. Utilities for May paid $8,200

Assets (Cash - $8,200) = Liabilities + Equity (Retained Earnings - $8,200)

7. Payment to Ladd = $34,000

Assets (Cash - $34,000) = Liabilities (Accounts Payable - $34,000) + Equity

8. Advertising expense on account = $3,300

Assets (Cash - $3,300) = Liabilities + Equity (Retained Earnings - $3,300)

9. Cash received from customers = $12,700

Assets (Cash + $12,700, Accounts Receivable -$12,700) = Liabilities + Equity

Explanation:

a) Data and Calculations:

Transactions entered into during May 2022:

1. Stockholders' investment in the business = $38,000

2. Office Computers purchased on account from Ladd = $34,000

3. Cash payment for May Rent = $2,200

4. Computer services performed on account = $19,500

5. Computer services performed for cash = $6,400

6. Utilities for May paid $8,200

7. Payment to Ladd = $34,000

8. Advertising expense on account = $3,300

9. Cash received from customers = $12,700

b) The accounting equation is the basis of the double-entry system of accounting practice. It states that at every point in time and with every transaction, the assets are equal to the liabilities plus owners' equity. This implies that the assets are owed by creditors and stockholders. Therefore, every business transaction by Sunland Company has a double-entry effect on the assets, liabilities, and owners' equity.

Answer from: Quest

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

Answer from: Quest

i think the answer is a. science center.

Another question on Business

Business, 22.06.2019 06:40

At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.

Answers: 1

Answer

Business, 22.06.2019 11:10

The green fiddle has declared a $5 per share dividend. suppose capital gains are not taxed, but dividends are taxed at 15 percent. new irs regulations require that taxes be withheld at the time the dividend is paid. green fiddle stock sells for $71.50 per share, and the stock is about to go ex-dividend. what will the ex-dividend price be?

Answers: 2

Answer

Business, 22.06.2019 20:00

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?

Answers: 1

Answer

Business, 23.06.2019 00:40

Oliver queen buys 100 shares of stock in green arrow archery corporation, a publicly traded company with which he is not affiliated as a director, officer, or employee. he then sells his 100 shares to john diggle. the sec sues oliver because he didn't register the sale of stock to john. who wins? oliver, because the sale falls into the nonissuer exemption oliver, because the sale falls into the private placement exemption the sec, because the transaction is not exempt from registration the sec, because even exempt transactions must be registered with the sec

Answers: 3

Answer

You know the right answer?

Sunland Company entered into these transactions during May 2022, its first month of operations. 1. S...

Questions