Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site: paid cash. $8. c. Issued additional shares of common stock on April 3 for $30. d. Purchased software on July 4, $11 cash. e. Purchased supplies on account on October 5 for future use, $19. f. Paid accounts payable on November 6, $12. g. Signed a $20 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $148 on December 8, including $34 on credit and $114 collected in cash. 1. Recognized salaries and wages expense on December 9, $79 paid in cash. Collected accounts receivable on December 10, $18. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software. $6. Supplies counted on December 31, 2021, $12. m Depreciation for the year on the equipment. $5. n Interest of $1 to accrue on notes payable. Salaries and wages earned but not yet paid or recorded. $11 p. Income tax for the year was $7. It will be paid in 2022
Transactions and events during 2021 (summarized in thousands of dollars) follow: a. Borrowed $11 cash on March 1 using a short-term note. b. Purchased land on March 2 for future building site: paid cash. $8. c. Issued additional shares of common stock on April 3 for $30. d. Purchased software on July 4, $11 cash. e. Purchased supplies on account on October 5 for future use, $19. f. Paid accounts payable on November 6, $12. g. Signed a $20 service contract on November 7 to start February 1, 2022. h. Recorded revenues of $148 on December 8, including $34 on credit and $114 collected in cash. 1. Recognized salaries and wages expense on December 9, $79 paid in cash. Collected accounts receivable on December 10, $18. Data for adjusting journal entries as of December 31: k. Unrecorded amortization for the year on software. $6. Supplies counted on December 31, 2021, $12. m Depreciation for the year on the equipment. $5. n Interest of $1 to accrue on notes payable. Salaries and wages earned but not yet paid or recorded. $11 p. Income tax for the year was $7. It will be paid in 2022
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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