Student Name Net ID Disc Section Accy 201 TA Name January Transactions 1. Dog \'
ID: 2551274 • Letter: S
Question
Student Name Net ID Disc Section Accy 201 TA Name January Transactions 1. Dog 'N Cat Corp issued 250,000 shares of No-par value common stock and received $325,000 in cash. 2. Dog 'N Cat Corp issued 125,000 shares of $1 par value common stock and received $467,500 in cash. 3, 'N Cat Corp signed an unsecured 5-year, 2.0% loan with US-Illinois Bank. The principle on the loan was $287,500. (lgnore interest.) 4. Dog 'N Cat Corp purchased land and a building for $586,000. The estimated value of the land was $164,225. The company made a 20% down payment (i.e. paid cash) and signed a 30-year, 4.0% mortgage with Borrower Bee, Inc. to pay for the remainder. (gnore interest.) 5. Dog 'N Cat Corp purchased computers for $46,000 on account from the Brain Trust Company 6. Dog 'N Cat Corp acquired office furniture for $56,400 from Furniture Warehouse. The company signed a 9 month, 2% loan with the supplier. 7. Dog 'N Cat Corp acquired display fixtures for $140,300 cash from Showroom Magic. 8. Dog 'N Cat Corp paid $128,800 for supplies from Staples 9. Dog 'N Cat Corp obtained merchandise it plans to sell to with a list price of $223,100 on credit from various suppliers 10. Dog 'N Cat Corp incurred $700 on account for freight (i.e. shipping) charges and the set-up of the display fixtures. Shipping and set-up were necessary to get the display fixtures into the business and ready for use and therefore, part of the acquisition cost of the asset. 11. Dog 'N Cat Corp discovered defective merchandise with a list price of $12,500. The merchandise was 12. Dog 'N Cat Corp obtained building and liability insurance coverage from Northwest Insurance Company. The 13. Dog 'N Cat Corp paid invoices (i.e.bills) returned and the supplier credited Dog 'N Cat Corp's customer account. 2-year policy begins February 1. The premium of $66,000 was paid in full. totaling $111,500. The invoices were paid in time to take a 36% discount which was deducted from the payment. The company treats prompt payment discounts as a reduction in the acquisition cost of the asset.Explanation / Answer
Transaction worksheet No. Account Name Amount Classification Increase/Decrease Debit/Credit 1 Cash 325000 Asset Increase Debit 1 Equity 325000 Equity Increase Credit 2 Cash 467500 Asset Increase Debit 2 Equity 467500 Equity Increase Credit 3 Cash 287500 Asset Increase Debit 3 Loan 287500 Liability Increase Credit 4 Land 164225 Asset Increase Debit 4 Building 421775 Asset Increase Debit 4 Cash 117200 Asset Decrease Credit 4 Mortgage payable 468800 Liability Increase Credit 5 Computer 46000 Asset Increase Debit 5 Accounts Payable 46000 Liability Increase Credit 6 Furniture 56400 Asset Increase Debit 6 Loan 56400 Liability Increase Credit 7 Fixtures 140300 Asset Increase Debit 7 Cash 140300 Asset Decrease Credit 8 Supplies 128800 Asset Increase Debit 8 Cash 128800 Asset Decrease Credit 9 Inventory 223100 Asset Increase Debit 9 Accounts payable 223100 Liability Increase Credit 10 Fixtures 700 Asset Increase Debit 10 Cash 700 Asset Decrease Credit 11 Accounts payable 12500 Liability Decrease Debit 11 Inventory 12500 Asset Decrease Credit 12 Prepaid Insurance 66000 Asset Increase Debit 12 Cash 66000 Asset Decrease Credit 13 Accounts payable 111500 Liability Decrease Debit 13 Cash 107486 Asset Decrease Credit 13 Inventory 4014 Asset Decrease Credit