Business
Talbot Riding Stables provides stables, care for animals, and grounds for riding and showing horses. The account balances at the beginning of 2018 were:Problem Set B Enlarge Image During 2018, the following transactions occurred: Talbot provided animal care services, all on credit, for $210,300. Talbot rented stables to customers for $20,500 cash. Talbot rented its grounds to individual riders, groups, and show organizations for $41,800 cash.There remains $15,600 of accounts receivable to be collected at December 31, 2018.Feed in the amount of $62,900 was purchased on credit and debited to the supplies account.Straw was purchased for $7,400 cash and debited to the supplies account.Wages payable at the beginning of 2018 were paid early in 2018. Wages were earned and paid during 2018 in the amount of $112,000.The income tax payable at the beginning of 2018 was paid early in 2018. Payments of $73,000 were made to creditors for supplies previously purchased on credit. One year's interest at 9% was paid on the notes payable on July 1, 2018. During 2018, Jon Talbot, a principal shareholder, purchased a horse for his wife, Jennifer, to ride. The horse cost $7,000, and Talbot used his personal credit to purchase it. Property taxes were paid on the land and buildings in the amount of $17,000. Dividends were declared and paid in the amount of $7,200. The following data are available for adjusting entries: Supplies (feed and straw) in the amount of $30,400 remained unused at year-end. Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. Wages of $4,000 were unrecorded and unpaid at year-end. Interest for six months at 9% per year on the note is unpaid and unrecorded at year-end. Income taxes of $16,500 were unpaid and unrecorded at year-end.
On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred;a. Paid $2,900 cash for accounts payable due.b. Collected $1,300 of accounts receivable.c. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account.d. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October.e. Declared and paid a $400 cash dividend.f. Paid salaries $1,700, rent for September $900, and advertising expense $200.g. Incurred utilities expense for month on account $170.h. Received $10,000 from Capital Bank on a 6-month note payable.InstructionsPrepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues Expenses Dividends.Prepare an income statement for September, a retained earnings statement for September, and a balance sheet at September 30.
A registered representative services the brokerage account of her father-in-law at her broker-dealer. The father-in-law has asked the registered representative to act as the trustee in a trust account for her spouse and children. The following assets are being donated by the father-in-law into the trust:Office Building: $15,500,000Construction Company: $20,000,000Construction Equipment: $ 2,000,000The registered representative has agreed not to charge a trustee's fee to do this. Does she have to get permission of her broker-dealer to act as trustee?A. No, because it is a family relationshipB. No, because the trust does not hold securitiesC. No, because she is not being compensated to be the trusteeD. Yes, because this is an outside business activity