Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on may 1, 2020, russell simmons decided to start a

On May 1, 2020, Russell Simmons decided to start a recording studio, Mos Def Jam...

80.2K

Verified Solution

Question

Accounting

image
On May 1, 2020, Russell Simmons decided to start a recording studio, Mos Def Jam Studios, with a $75,000 cash Investment. On May 12, he purchased $12,000 of studio equipment from B&H, using Check no. 1001. The following day, Mr. Simmons bought fumiture on account from Office Depot valued at $3,200. Office Depot issued his company Invoice no. 4532, allowing him 30 days to pay the invoice in full. On May 30, Mr. Simmons opened his doors for business and sold a music track to an upcoming artist. The artist paid $10,000 to Mos Def Jam Studios, Issuing Check no. 1104. On June 3, the company needed to purchase additional equipment and bought on account, $11,000 of additional recording studio equipment on account from B&H. Payment terms were 2/10 net 30, Invoice no. 1775. Before the 30 days were up, Mos Def Studios paid in full the amount owed to Office Depot, issuing Check no. 1002 to pay for the furniture on June 4. On June 7, Mr. Simmons withdrew $3,000 for personal expenses. What are the final balances for the T-account for Accounts Payable, Cash, Studio Equipment, Furniture, Russell Simmons, Capital, Russell Simmons, Drawing, Studio Fees

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students