The following information applies to the questions displayed below Ohlo Mining C

Question

The following information applies to the questions displayed below Ohlo Mining Company was formed on January 1, 2010 Events Affecting the 2010 Accounting Period 1. Acqulred cash of $62,000 from the issue of common stock. 2. Purchased $1,800 of supplles on account. 3. Purchased land that cost $22,000 cash. 4. Pald $1,800 cash to settle accounts payable created in Event 2 5. Recognized revenue on account of $70,000. 6. Pald $24,000 cash for other operating expenses. 7. Collected $48,000 cash from accounts recelvable Information for 2010 Adjusting Entries 8. Recognized accrued salaries of $2,300 on December 31, 2010 9. Had $220 of supplies on hand at the end of the accounting period. Events Affecting the 2011 Accounting Period 1. Acqulred an additlonal $22,000 cash from the issue of common stock. 2. Pald $2,300 cash to settle the salaries payable obligation. 3. Pald $3,750 cash in advance for a lease on office facilltles 4. Sold the land that cost $22,000 for $22.000 cash. 5. Recelved $5,700 cash In advance for services to be performed In the future 6. Purchased $1,400 of suppliles on account during the year 7. Provided services on account of $58,000 8. Collected $63,000 cash from accounts recelvable 9. Pald a cash dividend of $5,200 to the stockholders. Information for 2011 Adjusting Entries 10. The advance payment for rental of the office facilitles (see Event 3) was made on September 1 for a one year lease term. 11. The cash advance for services to be provided In the future was collected on June 1 (see Event 5). The one-year contract started June 1 12. Had $220 of supplies on hand at the end of the perlod 13. Recognized accrued salarles of $3,400 at the end of the accounting perlod.

Explanation / Answer

Accounting Equation for 2010 Event 1 Type of Cash aacounts supplies prepaid land Accounts salaries unearned common Retained Event receivable rent payable payable revenue stock Earnings 1 AS 62,000 62,000 2 AS 1,800 1,800 3 AE -22,000 22,000 4 AU -1,800 -1,800 5 AS 70,000 70,000 6 AU -24,000 -24,000 7 AE 48,000 -48,000 8 CE 2,300 -2,300 9 AU -1,580 -1,580 total 62,200 22,000 220 22,000 0 2,300 62,000 42,120 Event 2 Type of Cash Accounts Supplies Prepaid land Accounts Salaries unearned Common Retained Event Receivable rent payable payable revenue stock Earnings bal 62,200 22,000 220 0 22,000 0 2,300 0 62,000 42,120 1 AS 22,000 22,000 2 AU -2,300 -2,300 3 AE -3,750 3,750 4 AE 22,000 -22,000 5 AS 5,700 5,700 6 AE -1,400 1,400 7 AS 58,000 58,000 8 AE 63,000 -63,000 9 AU -5,200 -5,200 10 AU -1,250 -1,250 11 CE -5,700 5,700 12 AU -1,400 -1,400 13 CE 3,400 -3,400 total 162,250 17,000 220 2500 0 0 3,400 0 84,000 94,570

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.