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Module 2 Homework Terms in this set (15) Wagner Excavating organized as a corporation on January 18 and engaged in the following transactions during its first two weeks of operation. Jan.18 Issued capital stock in exchange for $400,000 cash. Jan.2$7.99
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Module 2 Homework Terms in this set (15) Wagner Excavating organized as a corporation on January 18 and engaged in the following transactions during its first two weeks of operation. Jan.18 Issued capital stock in exchange for $400,000 cash. Jan.2
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Course
CGAP - Certified Government Auditing Professional
Institution
CGAP - Certified Government Auditing Professional
Module 2 Homework
Terms in this set (15)
Wagner Excavating organized as a corporation on January 18 and engaged in
the following transactions during its first two weeks of operation.
Jan.18 Issued capital stock in exchange for
$400,000 cash.
Jan.22 Borrowed $100,000 from its bank ...
Wagner Excavating organized as a Cash has a debit balance of $509,000
corporation on January 18 and engaged in
the following transactions during its first two
weeks of operation.
Jan.18 Issued capital stock in exchange for
$400,000 cash.
Jan.22 Borrowed $100,000 from its bank by
issuing a note payable.
Jan.23 Paid $200 for a radio advertisement
aired on January 24.
Jan.25 Provided $5,000 of services to clients
for cash.
Jan.26 Provided $18,000 of services to
clients on account.
Jan.31 Collected $4,200 cash from clients for
the services provided on January 26.
a. Record each of these transactions.
b. Determine the balance in the Cash
account on January 31. Be certain to state
whether the balance is debit or credit.
Mastrolia Corporation's Retained Earnings The amount collected from receivables as well as
account balance was $25,000 on January 1. amount paid to payables do not affect the retained
During January, the company recorded earnings balance and therefore are not considered
revenue of $80,000, expenses of $60,000, for the calculation of ending retained earning
and dividends of $5,000. The company also balance.
collected a $9,000 account receivable and
paid a $6,000 account payable during the
period.
Determine the company's Retained Earnings
Module 2 Homework
account balance on January 31.
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, 8/7/24, 2:45 AM
The following transactions were carried out a. No
during the month of May by Hagen and b. No
Associates, a firm of design architects. For c. No
each of the five transactions, state whether d. Yes
the transaction represented revenue to the e. Yes
firm during the month of May.
a. The firm received $300,000 cash by
issuing additional shares of capital stock.
b. Collected cash of $25,000 from an
account receivable. The receivable
originated in April from services rendered to
a client.
c. Borrowed $60,000 from Century Bank to
be repaid in three months.
d. Earned $250 interest on a company
savings account during the month of May.
No withdrawals were made from this
account in May.
e. Completed plans for a guesthouse, pool,
and spa for a client. The $7,000 fee for this
project was billed to the client in May, but
will not be collected until June 25.
Harley Consulting has provided the The matching principle for expenses states that revenues should be offset by all
following information regarding cash expenses incurred in earning the revenue therefore expenses are recognized when
payments to its employees in May and June. they are incurred for earning revenue.
Salary payments in May for work performed 30,000 + 10,000 = 40,000
by employees in April$25,000
Salary payments in May for work performed
by employees in May 30,000
Salary payments in June for work performed
by employees in May 10,000
Apply the matching principle to determine
how much salary expense Harley Consulting
should report in its May income statement.
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