Record in general journal format the adjustment

Assignment Help Accounting Basics
Reference no: EM13914778

Washington Mining began operations by issuing common stock for $150,000. The company paid $135,000 cash in advance for a one-year contract to lease machinery for the business. The lease agreement was signed on March 1, 2013 and was effective immediately. Washington Mining received $172,500 of cash revenue in 2013. 

Required

a. Record the March 1 cash payment in general journal format. 

b. Record in general journal format the adjustment required as of December 31, 2013. 

c. Record all 2013 events in a horizontal statements model like the following one: 

1958_264-B-A-D-E-F (65).png

d. What amount of net income would Washington Mining report on the 2013 income statement? What is the amount of net cash flow from operating activities for 2013? 

e. Determine the amount of prepaid rent Washington Mining would report on the December 31, 2013, balancesheet.

Reference no: EM13914778

Questions Cloud

Based on the CAPM-What is the risk-free rate : Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?
Creating a website which showcases the program skills : For your Project, you will create a website that showcases the skills you have gained throughout your psychology program. Your website will consist of the following elements:
Notable pre-war era politicians or social figures : Pick one of the notable pre-war era politicians or social figures addressed in the lecture, and assume their position and beliefs. After introducing yourself as your selected figure, choose two issues of note presented in this unit (1820-1861),
Determine present value of interest tax shield : Primary Health Care is one of Australia’s leading listed healthcare companies. Primary is a service company to medical and allied health professionals. Primary’s marginal corporate tax rate is 30%. Assume that the marginal personal tax rate on income..
Record in general journal format the adjustment : Washington Mining began operations by issuing common stock for $150,000. The company paid $135,000 cash in advance for a one-year contract to lease machinery for the business. The lease agreement was signed on March 1, 2013 and was effective immediat..
Prepare journal entries to record the estimated liability : Prepare journal entries to record the estimated liability for product warranties during the month and the clocks replaced under warranty during the month.
How much money can you get by selling your rights : Roth Corp. wants to raise $3.8 million via a rights offering. The company currently has 480,000 shares of common stock outstanding that sell for $35 per share. Its underwriter has set a subscription price of $25 per share and will charge the company ..
The following events apply to computer services : The following events apply to Computer Services Inc. in its first year of operation:
Provide policy suggestions to improve water quality levels : Visit the Web site at www.epa.gov/waters/ 305b/index.html, and select a state in the nation. Write a one-page summary of the surface water and groundwater quality in that state. Provide some policy suggestions to improve water quality levels. Be s..

Reviews

Write a Review

Accounting Basics Questions & Answers

  The partnership incurred losses in recent years and decided

as of january 1 2011 the partnership of canton yulls and garr had the following account balances and percentages for

  Determine the depreciation

A Kubota tractor acquired on January 9 at a cost of $75,000 has an estimated useful life of 20 years. Assuming that it will have no residual value, determine the depreciation for each of the first two years:

  Use in determining its right of use asset and lease liabilit

1.What discount rate does the lessee use in determining its right of use asset and lease liability?

  What cost should be recorded for the commercial safe

Appraised values were as follows: store fixtures, $6,000; display cases, $9,000; commercial safe, $5,000.

  If the unit selling price goes up then

If the unit selling price goes up, then

  Tax advantages-disadvantages

The town of Seaside has decided to construct a new sea aquarium to attract tourist. The cost of the measure is to be paid by a special tax. Although most of the townspeople believe the sea aquarium is a good idea, there is disagreement about how t..

  Traham lumber company hired you to help estimate its cost

traham lumber company hired you to help estimate its cost of common equity. you obtained the following data d11.25

  What was the earnings per share

Carter Corporation had net income of $250,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2008.

  Analyze statements about accounting and recording process

Analyze statements about accounting and the recording process. Josh Cephus has prepared the following list of statements about accounts.

  How do the accounting methods used for investments

How do the accounting methods used for investments involving a significant influence and investments involving control differ?

  This year lloyd a single taxpayer estimates that his tax

this year lloyd a single taxpayer estimates that his tax liability will be 10750. last year his total tax liability was

  Denominator level of activity affects the fixed portion

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity affects the fixed portion of the pr..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd