1. Groro Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment:
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Solutions; 1. Groro Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment:
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1. Groro Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment:
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1. Groro Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment: (1) $10,000 cash, (2) computer equipment worth $80,000, and (3) to assume responsibility for a $28,000 note payable related to the computer equipment. The entry Groro makes to r...
use the above information to prepare an august income statement for the business
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1. Groro Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment:
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1. Groro Co. bills a client $62,000 for services provided and agrees to accept the following three items
in full payment: (1) $10,000 cash, (2) computer equipment worth $80,000, and (3) to assume
responsibility for a $28,000 note payable related to the computer equipment. The entry Groro makes to
record this transaction includes which one or more of the following? (Select all that apply.)
2.
Following are transactions of a new company called Pose-for-Pics.
Aug. 1
Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company
in exchange for common stock.
2
The company paid $2,100 cash for an insurance policy covering the next 24 months.
5
The company purchased office supplies for $880 cash.
20
The company received $3,331 cash in photography fees earned.
31
The company paid $675 cash for August utilities.
Prepare general journal entries for the above transactions.
Date
General Journal
Debit
Credit
Aug. 1
Cash
6,500
a.
Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock.
b.
The company purchased office supplies for $1,250 cash.
c.
The company purchased $10,050 of office equipment on credit.
d.
The company received $15,500 cash as fees for services provided to a customer.
e.
The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c.
f.
The company billed a customer $2,700 as fees for services provided.
g.
The company paid $1,225 cash for the monthly rent.
h.
The company collected $1,125 cash as partial payment for the account receivable created in transaction
f.
i.
The company paid $10,000 cash in dividends to Spade (sole shareholder).
Prepare general journal entries to record the transactions below for Spade Company by using the
following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable;
Common Stock; Dividends; Fees Earned; and Rent Expense.
Transaction
General Journal
Debit
Credit
a.
Cash
100,750
Common stock
100,750
b.
Office supplies
1,250
Cash
1,250
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