Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. prepare journal entries for these of the following

Prepare journal entries for these of the following business events for Modern Automobiles of Denver...

70.2K

Verified Solution

Question

Accounting

image
Prepare journal entries for these of the following business events for Modern Automobiles of Denver On January 1, 2017, Modern issued its common stock for $280,000. Early in January, Modern made the following cash payments: $120,000 for equipment $136,000 for inventory (four cars at $34,000 each) $23,000 for 2017 rent on a store building In February, Modern purchased nine cars for inventory on account. Cost of this inventory was $414,000 Before year-end, Modern paid $124,200 of this debt. In 2017, Modern sold seven autos for a total of $400,000. Before year-end, Modern collected 90% of this amount. (Modern uses the FIFO method to account for inventory,.) The business employs four people. The combined annual payroll is $100,000, of which Modern owes $3,000 at year-end. At the end of the year, Modern paid income tax of $15,000. Late in 2017, Modern's board of directors declared cash dividends of $16,000. For equipment, Modern uses the straight-line depreciation method, over five years, with zero residual value. After the journal entries are done, prepare a trial balance

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In what exact scenarios would the \"null hypothesis\" be either rejected or accepted? What exactly does it...

Statistics
Q

What are the three main types of trophic pyramids studied in ecology?

Biology
Q

A refrigerator using R-12 as the working fluid keeps the refrigerated space at ?16? in an...

Mechanical Engineering
Q

The general manager of a fast food restaurant chain must choose six restaurants from among...

Basic Math
Q

bsite receives an average of 10 visits every minute The site manager starts to monitor...

Statistics
Q

For Problems 3 6 compute a the cost of the stock and b the total...

Algebra
Q

Other-than-temporary impairments are not an issue for debt investments classified as: Multiple Choice ...

Accounting
Q

Partners Owens and Wilson have a coin-operated laundry business in a retail shopping center. The...

Accounting
Q

Johnson. Inc has a bond outstanding with a coupon rate of 2% with semiannual payments....

Accounting
Q

Of the items below, the one that represents the "bottom line" on the statement of...

Accounting
Q

For nos. 27 to 30 . JULIO COMPANY and AUGUSTO COMPANY are participants in a...

Accounting
Q

WED Corporation issued 350,000 shares of $ 4 par value stock. The book value of...

Accounting