Financial Accounting
Week 2
I)Frontier Park was started on April 1 by C.J Mendez and associates. The following selected events and transactions occurred during April.
April 1 Stockholders invested $40,000 cash in the business in exchange for common stock. 4 Purchased land costing $30,000 for cash. 8 Incurred advertising expense of $1,800 on account. 11 Paid salaries to employee $1,500. 12 Hired park manager at a salary of $4,000 per month, effective May 1. 13 Paid $1,500 cash for a one –year insurance policy. 17 Declared and paid a $1,000 cash dividend. 20 Received $5,700 in cash for admission fees. 25 Sold 100 coupon books for $25 each.Each book contains 10 coupons that entitle the holder to 1 admission per park. 30 Received $8,900 in cash admission fees. 30 Paid $900 on balance owed for advertisiing incurred on April 8.
Mendez uses the following account: Cash;Prepaid Insurance;Land;Accounts payable;Unearned Admissions Revenue; Common Stock;Dividends; Admission Revenue; Advertising Expense; and Salaries Expense.
II) Jane Kent is a Licensed CPA. During the first month of operations of her business, Jane Kent Inc, the following events and transactions occurred.
May 1 Stockholders invested $25,000 cash in exchange for comon stock. 2 Hired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $2,500 of supplies on acount from Read Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,100 for services provided. 12 Received $3,500 advance on a management consulting engagement . 17 Received cash of $1,200 for services completed for H. Arnold Co. 31 Paid Secretary-receptionist $2,000 salry for the month. 31 Paid 40% of balance due Read Supply Company.
Jane uses the following chart accounts: No. 101 Cash, Mo. 112 Accounts
I)Frontier Park was started on April 1 by C.J Mendez and associates. The following selected events and transactions occurred during April.
April 1 Stockholders invested $40,000 cash in the business in exchange for common stock. 4 Purchased land costing $30,000 for cash. 8 Incurred advertising expense of $1,800 on account. 11 Paid salaries to employee $1,500. 12 Hired park manager at a salary of $4,000 per month, effective May 1. 13 Paid $1,500 cash for a one –year insurance policy. 17 Declared and paid a $1,000 cash dividend. 20 Received $5,700 in cash for admission fees. 25 Sold 100 coupon books for $25 each.Each book contains 10 coupons that entitle the holder to 1 admission per park. 30 Received $8,900 in cash admission fees. 30 Paid $900 on balance owed for advertisiing incurred on April 8.
Mendez uses the following account: Cash;Prepaid Insurance;Land;Accounts payable;Unearned Admissions Revenue; Common Stock;Dividends; Admission Revenue; Advertising Expense; and Salaries Expense.
II) Jane Kent is a Licensed CPA. During the first month of operations of her business, Jane Kent Inc, the following events and transactions occurred.
May 1 Stockholders invested $25,000 cash in exchange for comon stock. 2 Hired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $2,500 of supplies on acount from Read Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,100 for services provided. 12 Received $3,500 advance on a management consulting engagement . 17 Received cash of $1,200 for services completed for H. Arnold Co. 31 Paid Secretary-receptionist $2,000 salry for the month. 31 Paid 40% of balance due Read Supply Company.
Jane uses the following chart accounts: No. 101 Cash, Mo. 112 Accounts