Anya Smith Started Geek Speak, a Computer Consulting Business, in February

question 61

Essay

Anya Smith started Geek Speak, a computer consulting business, in February, 2012. The company completed the following transactions during March, 2012:
1. Geek Speak paid Anya a dividend of $1,000.
2. Received partial payment from customers on account, $1,500.
3. Purchased a new computer for $1,800 and paid cash.
4. Borrowed $10,000 from the bank and signed a note payable.
5. Paid the employees their monthly salary of $2,800.
6. Recorded $4,000 of revenue on account and mailed invoices to the customers.
7. Purchased office supplies of $600 on account.
8. Paid for the office supplies purchased on account, $600.
REQUIRED:
Journalize the transactions. Explanations are not required.

Grasp the criteria for substantial performance and how it impacts contractual obligations.

Understand specific contract termination methods, including mutual rescission and novation.

Recognize the role of external elements, such as a third-party appraiser's evaluation or lender's financing, in fulfilling contractual conditions.

Discern the significance of personal satisfaction in performance criteria and how it affects contractual obligations.

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Definitions:

Preoperational Thought

A cognitive development stage in young children marked by the beginning of symbolic thinking but lacking operations (reversible mental actions).

Symbols

Signs or objects used to represent ideas, concepts, or other abstractions.

Script

A sequence of behaviors, actions, or events that are expected to follow a particular order in specific social or situational contexts.

Pajamas

A set of clothing, typically comfortable and loose-fitting, intended for sleep or home use.