1. Performed counseling services for $34,000 cash. 2. On February 1, Year 1, paid $24,000 cash to rent office space for the coming year. 3. Adjusted the accounts to reflect the amount of rent used during the year. Required Based on this information alone: a. Record the events in general ledger accounts under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting pe c. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2

1. Performed counseling services for $34,000 cash. 2. On February 1, Year 1, paid $24,000 cash to rent office space for the coming year. 3. Adjusted the accounts to reflect the amount of rent used during the year. Required Based on this information alone: a. Record the events in general ledger accounts under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting pe c. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Record the Note: Any expenses less than $500 should be classified as Miscellaneous. 2/1 Paid rent, $2,000. 2/2 Made loan payments of $300 and $1,000. 2/3 Cash received from debtors (accounts receivable), $12,800. 2/4 Bought inventory worth $3,500 and paid cash. 2/5 Paid for payroll amounted to $1,500. 2/6 Purchased additional equipment for $10,000; paid $2,000 cash and the rest on 2/6 Cash sales recorded at $16,800 and $12,300 on credit sales. 2/8 Bought office supplies, $400. 2/9 Paid creditors, $3,000. 2/10 Mr. Adams decided to invest in the business and he contributed $35,000. 2/11 Joe Withdrew $2,000 from the business. 2/13 Cash sales for the week, $15,900. 2/13 Credit sales for the week, $11,700. 2/15 Purchased additional furniture on account, $3,000. 2/17 Payroll amounted to $1,500 was paid. 2/18 Purchased inventory worth $6,800 on account. 2/18 Paid creditors, $6,000. 2/19 Paid advertising expense, $1,200. 2/20 Sales recorded at $24,000; of which $15,000 were cash and the rest…
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