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A. Extract each amount from S. O'Neill, Capital and place it in its proper account in the expanded ledger. Presently, Sean's Capital account is a bit of a puzzle. To help you figure out what each number represents, examine the information below. a. Sean was paid a total of $21 000 for the job, which was received in three separate installments. b. Sean's biggest single cost for the job was for renovation supplies. He purchased all he needed at the start of the month from Builder's Depot. c. Sean pays his one employee a total of $3000 per month. (For simplic ity, payroll deductions are not considered.) d. Sean withdraws $4500 per month for his personal living expenses. e. Sean pays about $110 per week for gasoline for his truck. f. At the beginning of July, Sean paid approximately $300 to repair two of his saws. B. Calculate the balance for each account in the expanded equity section. C. Use the expanded ledger to prepare a trial balance for Meadow- lark Makeovers dated July 31, 20-. For the trial balance, the asset and liability accounts that have balances on July 31 are Bank, $1300.20; Tools and Equipment, $5156.40; Truck, $6100; and A/P-Kitzul Tools, $1600. These amounts have been entered for you in your Workbook ledger. D. Prepare an income statement for Meadowlark Makeovers for the month of July, 20-. E. After looking at the Capital account, Sean was disappointed that all his hard work in July caused its balance to grow by only $1501 ($10 956.60-$9455.60). In a short paragraph, use what you see on his income statement and what you know about the expanded ledger to encourage Sean.

A. Extract each amount from S. O'Neill, Capital and place it in its proper account in the expanded ledger. Presently, Sean's Capital account is a bit of a puzzle. To help you figure out what each number represents, examine the information below. a. Sean was paid a total of $21 000 for the job, which was received in three separate installments. b. Sean's biggest single cost for the job was for renovation supplies. He purchased all he needed at the start of the month from Builder's Depot. c. Sean pays his one employee a total of $3000 per month. (For simplic ity, payroll deductions are not considered.) d. Sean withdraws $4500 per month for his personal living expenses. e. Sean pays about $110 per week for gasoline for his truck. f. At the beginning of July, Sean paid approximately $300 to repair two of his saws. B. Calculate the balance for each account in the expanded equity section. C. Use the expanded ledger to prepare a trial balance for Meadow- lark Makeovers dated July 31, 20-. For the trial balance, the asset and liability accounts that have balances on July 31 are Bank, $1300.20; Tools and Equipment, $5156.40; Truck, $6100; and A/P-Kitzul Tools, $1600. These amounts have been entered for you in your Workbook ledger. D. Prepare an income statement for Meadowlark Makeovers for the month of July, 20-. E. After looking at the Capital account, Sean was disappointed that all his hard work in July caused its balance to grow by only $1501 ($10 956.60-$9455.60). In a short paragraph, use what you see on his income statement and what you know about the expanded ledger to encourage Sean.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter6: Using Credit
Section: Chapter Questions
Problem 1FPE
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4. Sean O'Neill operates a home renovation business called Meadowlark Make- overs. He was fully occupied during the month of July working on a kitchen renovation. His daughter just started doing the bookkeeping for the busi- ness. She was pleased that she was able to balance the ledger using the debit and credit theory she learned in high school.
Transcribed Image Text:4. Sean O'Neill operates a home renovation business called Meadowlark Make- overs. He was fully occupied during the month of July working on a kitchen renovation. His daughter just started doing the bookkeeping for the busi- ness. She was pleased that she was able to balance the ledger using the debit and credit theory she learned in high school.
Sean shows you his capital account, which appears below. S. O'Neill, Capital 9 455.60 8 000.00 2 8 000.00 6. 5 000.00 11 245.00 312.09 4 109.55 110.71 I 500.00 2 250.00 108.99 7. 8. 10 12 13 112.66 I 500.00 2 250.00 10 956.60 When Sean asked his daughter what the net income was for the busi- ness in July, she was unable to tell him. Using the T-accounts in your Workbook for an expanded equity section of the ledger, rearrange the figures in the equity accounts so that you can determine the net income for Mead- owlark Makeovers. The specific steps to follow are listed below. A. Extract each amount from S. O'Neill, Capital and place it in its proper account in the expanded ledger. Presently, Sean's Capital account is a bit of a puzzle. To help you figure out what each number represents, examine the information below. a. Sean was paid a total of $21 000 for the job, which was received in three separate installments. b. Sean's biggest single cost for the job was for renovation supplies. He purchased all he needed at the start of the month from Builder's Depot. c. Sean pays his one employee a total of $3000 per month. (For simplic- ity, payroll deductions are not considered.) d. Sean withdraws $4500 per month for his personal living expenses. e. Sean pays about $110 per week for gasoline for his truck. f. At the beginning of July, Sean paid approximately $300 to repair two of his saws. B. Calculate the balance for each account in the expanded equity section. C. Use the expanded ledger to prepare a trial balance for Meadow- lark Makeovers dated July 31, 20-. For the trial balance, the asset and liability accounts that have balances on July 31 are Bank, $1300.20; Tools and Equipment, $5156.40; Truck, $6100; and A/P-Kitzul Tools, $1600. These amounts have been entered for you in your Workbook ledger. D. Prepare an income statement for Meadowlark Makeovers for the month of July, 20-. E. After looking at the Capital account, Sean was disappointed that all his hard work in July caused its balance to grow by only $1501 ($10 956.60 – $9455.60). In a short paragraph, use what you see on his income statement and what you know about the expanded ledger to encourage Sean.
Transcribed Image Text:Sean shows you his capital account, which appears below. S. O'Neill, Capital 9 455.60 8 000.00 2 8 000.00 6. 5 000.00 11 245.00 312.09 4 109.55 110.71 I 500.00 2 250.00 108.99 7. 8. 10 12 13 112.66 I 500.00 2 250.00 10 956.60 When Sean asked his daughter what the net income was for the busi- ness in July, she was unable to tell him. Using the T-accounts in your Workbook for an expanded equity section of the ledger, rearrange the figures in the equity accounts so that you can determine the net income for Mead- owlark Makeovers. The specific steps to follow are listed below. A. Extract each amount from S. O'Neill, Capital and place it in its proper account in the expanded ledger. Presently, Sean's Capital account is a bit of a puzzle. To help you figure out what each number represents, examine the information below. a. Sean was paid a total of $21 000 for the job, which was received in three separate installments. b. Sean's biggest single cost for the job was for renovation supplies. He purchased all he needed at the start of the month from Builder's Depot. c. Sean pays his one employee a total of $3000 per month. (For simplic- ity, payroll deductions are not considered.) d. Sean withdraws $4500 per month for his personal living expenses. e. Sean pays about $110 per week for gasoline for his truck. f. At the beginning of July, Sean paid approximately $300 to repair two of his saws. B. Calculate the balance for each account in the expanded equity section. C. Use the expanded ledger to prepare a trial balance for Meadow- lark Makeovers dated July 31, 20-. For the trial balance, the asset and liability accounts that have balances on July 31 are Bank, $1300.20; Tools and Equipment, $5156.40; Truck, $6100; and A/P-Kitzul Tools, $1600. These amounts have been entered for you in your Workbook ledger. D. Prepare an income statement for Meadowlark Makeovers for the month of July, 20-. E. After looking at the Capital account, Sean was disappointed that all his hard work in July caused its balance to grow by only $1501 ($10 956.60 – $9455.60). In a short paragraph, use what you see on his income statement and what you know about the expanded ledger to encourage Sean.
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