a. Received $10,300 cash for consulting services rendered. b. Issued 18 additional shares of common stock at a market price of $124 per share. c. Purchased $720 of office equipment, paying 25 percent in cash and owing the rest on a short-term note. d. Received $930 from clients for consulting services to be performed in the next year. e. Bought $550 of supplies on account. f. Incurred and paid $1,920 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1,700, due from clients in the next year. h. Received $3,260 from clients paying on their accounts. i. Incurred $6,290 in salaries in the current year, paying $5,420 and owing the rest (to be paid next year). j. Purchased $1,310 in short-term investments and paid $840 for insurance coverage beginning in the next fisca k. Received $14 in interest revenue earned in the current year on short-term investments. quired: pare an unadjusted classified income statement for the current year ended December 31. (Ignore income taxes.) te: Enter your answers in thousands, not in dollars.

a. Received $10,300 cash for consulting services rendered. b. Issued 18 additional shares of common stock at a market price of $124 per share. c. Purchased $720 of office equipment, paying 25 percent in cash and owing the rest on a short-term note. d. Received $930 from clients for consulting services to be performed in the next year. e. Bought $550 of supplies on account. f. Incurred and paid $1,920 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1,700, due from clients in the next year. h. Received $3,260 from clients paying on their accounts. i. Incurred $6,290 in salaries in the current year, paying $5,420 and owing the rest (to be paid next year). j. Purchased $1,310 in short-term investments and paid $840 for insurance coverage beginning in the next fisca k. Received $14 in interest revenue earned in the current year on short-term investments. quired: pare an unadjusted classified income statement for the current year ended December 31. (Ignore income taxes.) te: Enter your answers in thousands, not in dollars.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Paid $62,000 cash for other operating expenses during the year. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: Paid the balance of the sales tax due for Year 1. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Repaid the principal of the note and applicable interest on April 1, Year 2. Paid $102,500 of other…
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Paid $62,000 cash for other operating expenses during the year. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: Paid the balance of the sales tax due for Year 1. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Repaid the principal of the note and applicable interest on April 1, Year 2. Paid $102,500 of other…
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