MY QUESTION IS: How to do these parts? (use A-L = OE to establish Jack's initial capital). This the needs an opening general Journal entry). AND on july 2 Jack contributed a boat and motor vehicle to the business with various values. Explain how Jack arrived at these values(200 words).
The following transactions occurred during July, 2007.
On July 2, Jack decided to contribute a number of assets and liabilities to help him begin his fishing classes business.
Cash at bank $7000
Accounts Receivable. $1000
Boats $25000.
Fishing rods. $8000
Motor Vehicle. $12000
Accounts payable $2500
Loan $15000
(Note: use A-L = OE to establish Jack's initial capital). This the needs an opening general Journal entry).
2007-08-21 03:01:29 · 1 answers · asked by ppp 1 in Business & Finance ➔ Personal Finance
Opening general journal entry:
Dr Cash at bank $7000
Dr Accounts Receivable. $1000
Dr Boats $25000.
Dr Fishing rods. $8000
Dr Motor Vehicle. $12000
Cr Accounts payable $2500
Cr Loan $15000
Cr Owner's capital $35,500
(to record the assets, liabilities and initial owner's capital)
As to how Jack arrived at those values, it could be the depreciated net book value of the assets or it could be what he would have needed to pay if he bought similar assets in similar condition now.
2007-08-25 02:07:57 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋