Information regarding the note payable the note payable

Assignment Help Accounting Basics

Reference no: EM13596318

The Chase Consulting Group was organized on July 1, 2010 when the two principal owners each contributed $50,000 and received shares of stock in exchange. The following events occurred during Chase Consulting Group's first year of operations.

1. On July 1, acquired a building by paying $50,000 in cash and borrowing $250,000 from the ABC Bank.

Information regarding the building: The building has a useful life of 30 years and no salvage value. Chase Consulting uses straight line depreciation.

Information regarding the note payable: The note payable will be due in full in five years. Interest is payable annually. The interest rate on the note is 5%.

2. On July 1, paid cash in the amount of $1,200 for a one-year property insurance policy.

3. On August 1, purchased two computers for $4,000 cash each. The computers have a useful life of 5 years and a $100 salvage value. The computers will be depreciated using the straight line method.

4. On October 1, receives $120,000 in cash for services to be provided evenly during the next six months.

Required:
A. Determine the effect on the accounting equation of the necessary adjustments at December 31 for each of the following:
a. Depreciation on the building

Reference no: EM13596318

Questions Cloud

Jan 1 retired a piece of machinery that was purchased on : jan. 1 retired a piece of machinery that was purchased on january 1 2002. the machine cost 62000 and had a useful life

Lactic acid hc3h5o3 is a monoprotic acid that dissociates : lactic acid hc3h5o3 is a monoprotic acid that dissociates in aqueous solution. if a solution containing 0.50 m lactic

Find two other sets of three terms that are in subcontrary : nicomachus defined a subcontrary proportion which occurs when in three terms the greatest is to the smallest as the

The sales goal for your store this week last year was 20128 : question the sales goal for your store this week is 22682. the sales goal for your store this week last year was 20128.

Information regarding the note payable the note payable : the chase consulting group was organized on july 1 2010 when the two principal owners each contributed 50000 and

Ammonium nitrate decomposes to n2o and water at : ammonium nitrate decomposes to n2o and water at temperatures between 250degc and 300degc. write a balanced chemical

The alpha division of the xyz company manufactures product : the alpha division of the xyz company manufactures product x at a variable cost of 40 per unit. alpha divisions fixed

For the synthesis of potassium alum advantage is taken by : for the synthesis of potassium alum advantage is taken by the fact that aluminum hydroxide is amphoteric meaning it can

Assume that rayleighs criterion gives the limit of : assume that rayleighs criterion gives the limit of resolution of an astronauts eye looking down on earths surface from

User Account

All Pages