1. Began operations by acquiring $16,000 of cash from the issue of common stock. 2. Performed services and collected cash of $900. 3. Collected $4,900 of cash in advance for services to be provided over the next 12 months. 4. Provided $12,200 of services on account. 5. Purchased supplies of $470 on account.
1. Began operations by acquiring $16,000 of cash from the issue of common stock. 2. Performed services and collected cash of $900. 3. Collected $4,900 of cash in advance for services to be provided over the next 12 months. 4. Provided $12,200 of services on account. 5. Purchased supplies of $470 on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice help, please.
Transcribed Image Text:Service Revenue
Advertising Expense
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Rent Expense
Salary Expense
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Supplies Expense
Utilities Expense
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Transcribed Image Text:The following accounting events apply to Mary's Designs for Year 1:
Asset Source Transactions
1. Began operations by acquiring $16,000 of cash from the issue of common stock.
2. Performed services and collected cash of $900.
3. Collected $4,900 of cash in advance for services to be provided over the next 12 months.
4. Provided $12,200 of services on account.
5. Purchased supplies of $470 on account.
Asset Exchange Transactions
6. Purchased $4,200 of land for cash.
7. Collected $7,100 of cash from accounts receivable.
8. Purchased $420 of supplies with cash.
9. Paid $3,700 for one year's rent in advance.
Asset Use Transactions
10. Paid $2,800 cash for salaries of employees.
11. Paid a cash dividend of $1,900 to the stockholders.
12. Paid off $470 of the accounts payable with cash.
Claims Exchange Transactions
13. Placed an advertisement in the local newspaper for $150 on account.
14. Incurred utility expense of $115 on account.
Adjusting Entries
15. Recognized $3,675 of revenue for performing services. The collection of cash for these services occurred in a prior transaction.
(See Event 3.)
16. Recorded $1,480 of accrued salary expense at the end of Year 1.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education