Purchase Solution

Journal Entries and Statement Preparation

Not what you're looking for?

Ask Custom Question

Journal Entries and Statement preparation
1. On January 1, 2005 Frances Corporation started doing business and the owners contributed $200,000 capital in cash.

2. The company paid $24,000 to cover the rent for the office space for the 24 month period from January 1, 2005 to December 31, 2006.

3. On March 1, 2005 MSK Inc. entered into a consulting contact under which Frances Corporation promised to provide consulting to MSK Inc. for the ten month period fro March 1, 2005 to December 31, 2005 In return MSK promised to pay a monthly consulting fee of $15,00 which was to be paid in January 2006th Frances Corporation fulfilled its contractual obligations during 2005.

4. On July 1, 2005 Frances Corporation purchased offer equipment for $100,000 cash. The equipment was immediately placed into use. Francis Corporation uses the straight line method of depreciation. Frances Corporation records depreciation in proportion to the number of months usage.

5. Through November 30, 2005 the company had paid $ 66,000 to its emplolyees for 11 moths of salaries. Accrued salaries December 31, 2005 were $6,000.

6. On December 31, 2005 Norbert Corporation advanced $20,000 to Frances Corporation for consulting services to be provided during 2006.

1. Provide journal entries for each transaction.

2. Provide adjusting entries at the end of the year.

3. Prepare and income statement at the end of the year.

4. Prepare a Balance statement at the end of the year.

Purchase this Solution
Solution Summary

The journal entries and statement preparation are discussed for Frances Corporation.

Solution Preview

Dear student,
Solution to your problem is provided in a separate excel file attached ...

Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • The Accounting Cycle: Steps

    5 Adjusting journal entries 6 Preparation of Adjusted Trial balance 7 Preparation of financial statements-Income statement, Owner's Equity, Balance sheet & Cash flow statement. 8 Preparation of closing journal entries for the year 9 Preparation

  • General Journal - preparation of the statement of cash flows

    443672 General Journal - Preparation of the Statement of Cash Flows Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows.

  • Journal Entries for Fresh Market, Inc.

    The attached, formatted Microsoft Excel spreadsheet contains detailed illustrations and instructions for completion of the journal entry assignment for the Fresh Market, Inc. exercise, including preparation of journal entries, balance sheet accounts,

  • Accounting Cycle of an Organization

    Cash flow statement: derived from the other financial statements using either the direct or indirect method. Get ready closing journal entries that close temporary accounts such as revenues, expenses, gains, and losses.

  • Madrasa Inc: Entries for Three Depreciable Assets

    This file assists in the preparation all necessary journal entries and comparative income statements for Madrasa, Inc. for the 2009 and 2010 financial periods.

  • Creating Financial Statements, and Closing Entries

    Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account format. 3. Prepare closing journal entries from the worksheet. 4. Did the company have a good or a bad year during 2012?

  • Director of Accounting and Executive Director

    Entries are made in chronological order. Journals may include sales journal, purchases journal, general journal, cash payments journal, and cash receipts journal.

  • Each step of the accounting cycle with a transaction

    Accountants summarize this information in a balance sheet, income statement, and statement of stockholder's equity and statement of cash flows. 8.)

  • The Overall Accounting Cycle at Any Organization

    Accountants summarize this information in a balance sheet, income statement, and statement of stockholder's equity and statement of cash flows. 8.)

View More Related Solutions