Reference no: EM132653160

Problem - Use the following information for questions regarding ABC Co. in 2020 (assume this is the ?rst year of operations for ABC Co., and assume ABC pays cash unless noted otherwise, even if it results in ABC having a credit balance in cash):

1/1 Issued 60,000 shares of common stock for $1 each \

2/1 Paid $140,000 for equipment with a 10-year useful life. Depreciation in the year was $14,000.

3/1 Signed a 1-year factory lease, paying full amount of $48,000 upfront

3/15 Delivered services to client and bill in full for $275,000 (client will pay at a later date)

5/1 Purchased $20,000 worth of supplies on credit. By 12/31 $5,000 of supplies are left

6/1 Received $180,000 in advance payment from a client for services that will be performed by ABC Co. later

8/1 Performed $100,000 of services that the client paid for on 6/1

10/1 Declared and paid $30,000 in dividends

11/1 Purchased $120,000 in inventory

12/1 Pay $6,000 of the 5/1 purchase of supplies

Required -

1 - What is the cash amount reported on the December 31, 2020 Balance Sheet?

2 - What are total liabilities on the 2020 Balance Sheet?

3 - What is the December 31 adjusting entry related to the March 1 signing of the lease?

4 - What is the journal entry to close out expenses?

5 - What is 2020 Net Income (Loss)?

6 - What is end of year equity?

7 - What is the journal entry on October 1 related to dividends?

8 - What are total revenues?