{"id":23764,"date":"2022-01-09T17:58:37","date_gmt":"2022-01-09T17:58:37","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/problem-2-3a-santa-ana-services-was-formed-on-may-1-2014-the\/"},"modified":"2022-01-09T17:58:37","modified_gmt":"2022-01-09T17:58:37","slug":"problem-2-3a-santa-ana-services-was-formed-on-may-1-2014-the","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/problem-2-3a-santa-ana-services-was-formed-on-may-1-2014-the\/","title":{"rendered":"Problem 2-3a santa ana services was formed on may 1, 2014. the"},"content":{"rendered":"
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Problem 2-3A<\/h3>\n
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Santa Ana Services was formed on May 1, 2014. The following transactions took place during the first month.<\/p>\n

Transactions on May 1:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
1.<\/td>\n\u00a0<\/td>\nDon Humes invested $40,700 cash in the company, as its sole owner.<\/td>\n<\/tr>\n
2.<\/td>\n\u00a0<\/td>\nHired two employees to work in the warehouse. They will each be paid a salary of $2,560 per month.<\/td>\n<\/tr>\n
3.<\/td>\n\u00a0<\/td>\nSigned a 2-year rental agreement on a warehouse; paid $23,000 cash in advance for the first year.<\/td>\n<\/tr>\n
4.<\/td>\n\u00a0<\/td>\nPurchased furniture and equipment costing $30,140. A cash payment of $10,800 was made immediately; the remainder will be paid in 6 months.<\/td>\n<\/tr>\n
5.<\/td>\n\u00a0<\/td>\nPaid $1,810 cash for a one-year insurance policy on the furniture and equipment.<\/td>\n<\/tr>\n
6.<\/td>\n\u00a0<\/td>\nPurchased basic office supplies for $590 cash.<\/td>\n<\/tr>\n
7.<\/td>\n\u00a0<\/td>\nPurchased more office supplies for $1,460 on account.<\/td>\n<\/tr>\n
8.<\/td>\n\u00a0<\/td>\nTotal revenues earned were $19,340\u2014$8,040 cash and $11,300 on account.<\/td>\n<\/tr>\n
9.<\/td>\n\u00a0<\/td>\nPaid $420 to suppliers for accounts payable due.<\/td>\n<\/tr>\n
10.<\/td>\n\u00a0<\/td>\nReceived $3,060 from customers in payment of accounts receivable.<\/td>\n<\/tr>\n
11.<\/td>\n\u00a0<\/td>\nReceived utility bills in the amount of $360, to be paid next month.<\/td>\n<\/tr>\n
12.<\/td>\n\u00a0<\/td>\nPaid the monthly salaries of the two employees, totalling $5,120.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Prepare journal entries to record each of the events listed.\u00a0(Record entries in the order displayed in the problem statement. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)<\/strong><\/em><\/span><\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/p>\n

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Problem 2-3A Santa Ana Services was formed on May 1, 2014. The following transactions took place during the first month. Transactions on May 1: 1. \u00a0 Don Humes invested $40,700 cash in the company, as its sole owner. 2. \u00a0 Hired two employees to work in the warehouse. They will each be paid a salary […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-23764","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=23764"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23764\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=23764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=23764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=23764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}