Spreadsheet

Question Description

Followings are the questions please go through all the details and complete the work in spreadsheet format.

Worksheet for class 3 – Chapter 3 exercises

The following transactions take place from October 1, 20XX to December 31, 20XX for XYZ Company, a consulting firm.

1. October 1 - Sold 3,000,000 shares of stock to the public for $$10.00 per share. The stated par value is .50 (50 cents).
2. October 1 - Bought furniture and fixtures for a total of $55,000. Paid a $ 5,000 cash down payment, signed a note agreement for $40,000 to be due in 5 years at 7% annual interest. The principal and the interest will all be due as a lump sum in 5 years. $10,000 is due without interest in ninety (90) days.
3. October 1 – Pre-paid 12 months of rent in the amount of $48,000.
4. October 1 – Pre-paid 12 months of rent in the amount of $48,000.
5. October 5 – bought office supplies from Staples, Inc. in the amount of $785. The October 5 – bought office supplies from Staples, Inc. in the amount of $785. The company offered payment term of 60 days, no interest which XYZ took advantage of.
6. October 15 – entered a consulting agreement to services to begin immediately. XYZ invoices the client $12,000.
7. October 21 - entered a consulting agreement to services to begin immediately. XYZ invoices the client $15,000.
8. October 25 – received and recorded a telephone bill in the amount of $450. The bill is due to be paid on November 15th.
9. October 28 – received and recorded an electric bill in the amount of $225. The bill is due to be paid on November 25th.

1. October 31 – employees are paid monthly but have ½ month of salary withheld. Therefore, $25,000 was paid on October 31; but that represented work performed from October 1 – October 15. (1/2 month).
2. October 31 – recorded rent expense for the month of October.
3. October 31 – recorded insurance expense for the month of October.
4. November 1 – received a $35,000 payment from a client for consulting work that will begin before year end but the company has a 45-day cancellation clause.
5. November 5 - entered a consulting agreement to services to begin immediately. XYZ invoices the client $14,500.
6. November 15 - entered a consulting agreement to services to begin immediately. XYZ invoices the client $7,500.
7. November 15 – bought office supplies of $690 paying cash.
8. November 15 – paid the $450 telephone bill that was recorded on October 25th.
9. November 25 - received and recorded a telephone bill in the amount of $475. The bill is due to be paid on December 15th.
10. November 28 - received and recorded an electric bill in the amount of $240. The bill is due to be paid on December 25th.
11. November 30 – paid employees monthly salary of $50,000 for the period of October 16 – November 15 th.
12. November 30 – recorded rent expense for the month of November.
13. November 30 – recorded rent expense for the month of November.
14. November 30 – received payment from client for the October 15 th invoice of $12,000.
15. November 30 – received payment from client for the October 15 th invoice of $12,000.
16. December 4 – received and recorded a property tax bill of $6,250. The rental agreement with XYZ’s landlord stipulates that the XYZ is responsible for the property taxes. The bill is due in 30 days.
17. December 10 - received payment from client for the October 21 st invoice of $15,000.
18. December 15 – began work for the client that pre-paid for their contract on November 1st.
19. December 15 – paid the November $475 telephone bill.
20. December 15 – declared and paid a dividend of $300,000 to shareholders.
21. December 20 – received and paid a quarterly water bill of $180.

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