50.1K

Verified Solution

Link Copied!

your help is greatly appreciated.

In 2020, founder and CEO Matt Gilmore commenced business as Gilmore & Co., Inc., a producer of rather exquisite expensive baseball caps. Since he took Fundamentals of Accounting, he knew that a good accounting team was necessary in order to be successful in his new venture. He has asked you to handle the accounting for his new business. For the year ending 12/31/20, he had the following transactions: 1. Acquired $15,000 cash from the issue of common stock. 2. Sold $18,000 of fancy hats on account with Major League Baseball. 3. Received cash of $6,000 for sales from the NBA. 4. Collected $11,000 cash from the accounts receivable with Major League Baseball. 5. Paid $1,400 cash to purchase supplies needed to make his special Houston Astro caps. 6. Received $3,600 cash in advance from the NFL for sales of hats to be delivered in the future. 7. Had $100 of supplies on hand at the end of the year. 8. Paid cash of $6,500 for salaries expense 9. Incurred $2,800 of other operating expenses on account. 10. Delivered one-half of the sales agreed to in event 6 11. Paid $2,100 cash on the account payable created in event 9. 12. Paid a $1,000 cash dividend to the stockholders. Horizontal Worksheet Balance Sheet Liabilities Assets Stock. Equity Income Statement Rev. Exp. Net Inc. Stmt. of Cash Flows Event Supplies Com. Ret. Accts Rec. Cash Accts Payable Unearned Rev. + Stock + Eam. + + + + 1. 2. 3 4 5. 6. 7 8 9 10 11 12 + + + + + Bal. Gilmore & Co., Inc. Income Statement For the Year Ended December 31, 2020 Revenue Supplies expense Salaries expense Operating expenses Net Income Gilmore & Co., Inc. Balance Sheet As of December 31, 2020 Assets Cash Accounts receivable Supply inventory Total Assets Accounts Payable Unearned revenue Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liab. and Stockholders' Equity Gilmore & Co., Inc. Statement of Cash Flows As of December 31, 2020 Cash received from operating activities flows from customers flows for supplies expenses Net Cash Flow from Operating Act. Cash Outflows for Investing activities Cash flows from Financing activities flows from issuance of Comm.Stk flows for Dividends paid Net Cash Flow from Financing Act. Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance

Answer & Explanation Solved by verified expert

See Answer