Question

Atkins Advertising Agency began business on January 2. The transactions entered into by Atkins during its...

Atkins Advertising Agency began business on January 2. The transactions entered into by Atkins during its first month of operations are as follows:

a. Acquired its articles of incorporation from the state and issued 100,000 shares of capital stock in exchange for $200,000 in cash.
b. Purchased an office building for $150,000 in cash. The building is valued at $110,000, and the remainder of the value is assigned to the land.
c. Signed a three-year promissory note at the bank for $125,000.
d. Purchased office equipment at a cost of $50,000, paying $10,000 down and agreeing to pay the remainder in ten days.
e. Paid wages and salaries of $13,000 for the first half of the month. Office employees are paid twice a month.
f. Paid the balance due on the office equipment.
g. Sold $24,000 of advertising during the first month. Customers have until the 15th of the following month to pay their bills.
h. Paid wages and salaries of $15,000 for the second half of the month.
i. Recorded $3,500 in commissions earned by the salespeople during the month. They will be paid on the fifth of the following month.
Atkins Advertising Agency
Trial Balance
January 31
Debits Credits
Cash $ $
Accounts receivable
Land
Building
Office equipment
Commissions payable
Notes payable
Capital stock
Advertising revenue
Wage and salary expense
Commissions expense
Totals $ $

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On April 1, Vaughn Travel Agency began operations. The following transactions were completed during the month....
On April 1, Vaughn Travel Agency began operations. The following transactions were completed during the month. 1. Owner invested $22,000 in the business. 2. Obtained a bank loan for $8,600 by issuing a note payable. 3. Paid $13,000 cash to buy equipment. 4. Paid $1,100 cash for April office rent. 5. Paid $1,500 for supplies. 6. Purchased $600 of advertising in the Daily Herald, on account. 7. Performed services for $18,000: cash of $3,000 was received from customers, and the...
ABC Company entered into the following transactions during May, its first month of operations: May 1:...
ABC Company entered into the following transactions during May, its first month of operations: May 1: ABC Company sold common stock to owners in the amount of $200,000. May 1: ABC Company paid $36,000 cash for office rent for May, June, and July. May 3: ABC Company purchased a parcel of land costing $60,000 by paying $25,000 in cash and agreeing to pay the remainder within sixty days. May 9: ABC Company provided $32,000 of services to a customer. The...
Selected transactions for Polland Real Estate Agency during its first month of business follow: June 1...
Selected transactions for Polland Real Estate Agency during its first month of business follow: June 1 Samantha Polland opened Polland Real Estate Agency with an investment of $14,660 cash and $2,830 of equipment. 2 Paid $1,030 for a one-year insurance policy. 3 Purchased additional equipment for $4,670, paying $985 cash and signing a note payable for the balance. 10 Received $320 cash as a fee for renting an apartment. 16 Sold a house and lot to B. Rollins. The commission...
Option #2: Analyzing the Effect of Transactions Using the Accounting Equation Detroit Roofing Company began operations...
Option #2: Analyzing the Effect of Transactions Using the Accounting Equation Detroit Roofing Company began operations in August and completed the following transactions during that first month of operations. August 1 Detroit Roofing Company’s stockholders invested $45,000 cash in the company. 2 The company purchased $25,000 in office equipment. It paid $5,000 in cash and signed a note payable promising to pay the $20,000 over the next three years. 2 The company rented office space and paid $3,000 cash for...
ABC Company began operations on August 1, 2021 and entered into the following transactions during 2021:...
ABC Company began operations on August 1, 2021 and entered into the following transactions during 2021: 1. On August 1, ABC Company sold common stock to owners in the amount of $100,000 and borrowed $200,000 from the local bank on a 10-month, 12% note payable. 2. On September 1, ABC Company purchased a piece of equipment costing $80,000 by paying $50,000 in cash and agreeing to pay the remainder within six months. The equipment was assigned a 5-year life and...
ABC Company began operations on August 1, 2021 and entered into the following transactions during 2021:...
ABC Company began operations on August 1, 2021 and entered into the following transactions during 2021: 1. On August 1, ABC Company sold common stock to owners in the amount of $100,000 and borrowed $200,000 from the local bank on a 10-month, 12% note payable. 2. On September 1, ABC Company purchased a piece of equipment costing $80,000 by paying $50,000 in cash and agreeing to pay the remainder within six months. The equipment was assigned a 5-year life and...
On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions...
On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month. April 1 Nozomi invested $41,000 cash and computer equipment worth $35,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,700 cash for the first month’s (April) rent. 3 The company purchased $1,700 of office supplies for cash. 10 The company paid $2,300 cash for the premium on a 12-month...
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first...
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invests $70,000 cash and office equipment valued at $10,000 in the company. b. The company purchased a $150,000 building to use as an office. Biz Consulting paid $20,000 in cash and signed a note payable promising to pay the $130,000 balance over the next 10 years. c. The company purchased office equipment for $15,000 cash. d. The company...
Dak Company began operations on August 1, 2019 and entered into the following transactions during 2019:...
Dak Company began operations on August 1, 2019 and entered into the following transactions during 2019: 1. On August 1, Dak Company sold common stock to owners in the amount of $200,000 and borrowed 100,000 from the local bank on a 10-month, 12% note payable. 2. On September 1, Dak Company paid $50,000 cash to purchase supplies. 3. On October 1, Dak Company received $90,000 cash from a customer for services to be performed over the next nine months. 4....
The following selected transactions were completed by Air Systems Company during January of the current year....
The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30. 5 Paid freight of $190 on the January 2 purchase. 6 Returned $2,750 of the merchandise purchased on January 2. 13 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of goods sold was $22,400. 15 Paid freight of $215...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT