1-3B Hamiton Delivery, Inc. was organized as a corpontion. Below are the first t
ID: 2393840 • Letter: 1
Question
1-3B Hamiton Delivery, Inc. was organized as a corpontion. Below are the first two months of operations, ending on June 30. Received cash from stockholders for capital stock, $25,000. Purchased a portion of a delivery service that had been operating as a partnership in accordance with details presented below: Assets acquired by the corporation: a. b. Account Receivable Truck Supplies Office Supplies $4,900 895 215 $6010 Liabilities assumed by corporation: Account Payable 1,500 Payment to be made as follows: Cash Two non-interesting bearing notes 2,510 Payable of $1000 each, due at two- Month intervals 2,000 $4,510 c. Paid insurance premiums in advance, $660. d. Charged delivery service sales to customers on account, $19,950. e. Purchased truck supplies on account, $975 f. Purchased office supplies for cash, $50. g. Received cash from customers on account, $18,750. h. Paid creditors on account, $1,475 i. Paid first of two notes payable, 1,000. j. Paid utilities expense, $495 k. Paid rent expense on office and trucks, $2,950 1. Paid miscellaneous expenses, $185. m. Paid wages expense, $9,500. n. Paid advertising expense $450. o. Paid taxes expense $75. p. Paid cash dividends to stockholders, $1,500. q. Truck supplies used, $1,090. r. Office supplies used, $70. s. Insurance premiums that expired and became an expense, $110. t. Purchased land a future building site, paying $5,000 in cash and signing a Mortgage Note for $20,000.Explanation / Answer
Trans Accounts title Dr Cr A Furniture & Fixtures $25,000 Capital stock $25,000 (firm exchanged capital stock for CASH recorded) B Accounts receivable $4,900 Truck supplies 895 office supplies 215 Accounts payable 1500 Cash 2510 Notes Payable 2000 c Prepaid Insurance $25,000 Cash $25,000 (being prepaid insurance recorded) d Accounts receivable $19,950 Delivery services sales $19,950 (being Delivery services sales recorded) e Truck supplies $975 Accounts payable $975 f office supplies $50 Accounts payable $50 g Cash $18,750 Accounts receivable $18,750 h Accounts payable $1,475 Cash $1,475 i Notes payable $1,000 Cash $1,000 j Utilities expenses $495 Cash $495 k Rent expenses $2,950 Cash $2,950 l Miscelleneous expenses $185 Cash $185 m Wages expenses $9,500 Cash $9,500 n Advertsiing expenses $450 Cash $450 o Income tax expenses $75 Cash $75 p Cash dividends $1,500 Cash $1,500 q Truck supplies expenses $1,090 Truck supplies $1,090 r Office supplies expenses $70 Office supplies $70 s Insurance expenses 110 Prepaid insurance 110 t Land 25000 CASH $5,000 Mortgage notes payable 20000
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