Reference no: EM132465736

Two independent cases

Case 1

Problem 1: On Dec.1, 2015, Tasty Sausage Corp. (TSC) rented a warehouse from Regs LTD and paid the rent of the coming six months in advance of $9,000. Record the transaction on TSC's books (Tenant) on Dec. 1, 2015.

Date; Dec 1 -2015

Assets = ( )

Liabilities = ( )

Owners equity = ( )

Related to the above transaction indicate what will TSC report in each statement on Dec. 31, 2015:

1. Income Statement for the year ended Dec. 31, 2015
2. Name of account = ( )
3. Amount = ( )

Balance Sheet as of Dec. 31, 2015

1. Name of account = ( )
2. Amount = ( )

Case 2

Problem 2: During 2016, ALU bought projection equipment on installment basis. The contract price was $62,400, payable in 12 installments of $5,200 each. The cash price for this equipment was $60,000. Additional $1, 430 were paid for installation work. The costs of running the projection equipment during 2016 was $950. Determine the cost at which the Projection equipment will be recorded in the books of ALU.