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    kPrasad8
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    Flyer Corp began operations on January 1, 2020 and had various cash transactions including issuing stock and bonds, purchasing insurance and equipment, hiring an employee, performing services for customers, and receiving advance payments from customers. Additional information provides details on bonds interest, equipment depreciation, supplies inventory, timing of employee pay, and services not yet provided. The document requests that the accounting cycle be completed for Flyer Corp's first month through preparing financial statements using spreadsheet software.

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    Financial Statements

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    Flyer Corp began operations on January 1, 2020 and had various cash transactions including issuing stock and bonds, purchasing insurance and equipment, hiring an employee, performing services for customers, and receiving advance payments from customers. Additional information provides details on bonds interest, equipment depreciation, supplies inventory, timing of employee pay, and services not yet provided. The document requests that the accounting cycle be completed for Flyer Corp's first month through preparing financial statements using spreadsheet software.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views1 page

    Financial Statements

    Uploaded by

    kPrasad8
    Flyer Corp began operations on January 1, 2020 and had various cash transactions including issuing stock and bonds, purchasing insurance and equipment, hiring an employee, performing services for customers, and receiving advance payments from customers. Additional information provides details on bonds interest, equipment depreciation, supplies inventory, timing of employee pay, and services not yet provided. The document requests that the accounting cycle be completed for Flyer Corp's first month through preparing financial statements using spreadsheet software.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Background: Flyer Corp. began operations on January 1, 2020. During the 1st month, it had the following transactions.

    January 1, 2020 Raised cash by issuing common stock ₹ 350,000.00


    Raised cash by issuing bonds ₹ 250,000.00
    Purchased a 2 year insurance policy with cash ₹ 48,000.00

    January 10, 2020 Used cash to purchase equipment ₹ 75,000.00


    Purchased supplies on account ₹ 30,000.00

    January 15, 2020 Hired an assistant with annual salary ₹ 60,000.00

    January 20, 2020 Performed services for a customer for cash ₹ 15,000.00
    Performed services for a customer on account ₹ 3,000.00

    January 23, 2020 Received a cash advance from a customer ₹ 5,000.00

    January 25, 2020 Paid for the supplies purchased on account ₹ 30,000.00

    January 30, 2020 Received partial payment from the customer on account ₹ 1,000.00

    Additional Information
    1) The bonds issued on January 1st have an APR of 5%, paid annually.
    2) Equipment depreciates straight line over 10 years and has no salvage value.
    3) Supplies on-hand at the end of the month were worth $26,000.
    4) The assistant will not get paid for his first 2 weeks of work until February 10.
    5) No services were completed for the customer who paid in advance by the end of January.

    Instructions: Complete the 1st month accounting cycle through financial statement preparation using spreadsheet software.

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