Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. Cash Accounts receivable Notes receivable office supplies Prepaid insurance Equipment Accounts payable Notes payable Unearned revenue $ 8,000 A. Lopez, Capital 3,500 2,500 1,500 1,000 A. Lopez, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense 4,000 1,300 Advertising expense Utilities expense 2,400 300 $ 11,600 2,000 12,000 500 3,000 2,000 400 200 Required: 1. Prepare a December income statement for the business. 2. Prepare a December statement of owner's equity. The A. Lopez, Capital account balance at December 1 was $0, and the owner invested $11,600 cash in the company on December 2. 3. Prepare a December 31 balance sheet. Hint: Use the A. Lopez, Capital account balance calculated in part 2.
Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. Cash Accounts receivable Notes receivable office supplies Prepaid insurance Equipment Accounts payable Notes payable Unearned revenue $ 8,000 A. Lopez, Capital 3,500 2,500 1,500 1,000 A. Lopez, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense 4,000 1,300 Advertising expense Utilities expense 2,400 300 $ 11,600 2,000 12,000 500 3,000 2,000 400 200 Required: 1. Prepare a December income statement for the business. 2. Prepare a December statement of owner's equity. The A. Lopez, Capital account balance at December 1 was $0, and the owner invested $11,600 cash in the company on December 2. 3. Prepare a December 31 balance sheet. Hint: Use the A. Lopez, Capital account balance calculated in part 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
1
Transcribed Image Text:Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix
shows the following selected accounts and amounts for the month of December.
Cash
Accounts receivable
Notes receivable
office supplies
Prepaid insurance
Equipment
Accounts payable
Notes payable
Unearned revenue
$ 8,000 A. Lopez, Capital
3,500
2,500
1,500
1,000
4,000
1,300 Advertising expense
2,400
Utilities expense
300
A. Lopez, Withdrawals
Consulting revenue
Rental revenue
Salaries expense
Rent expense
$ 11,600
2,000
12,000
500
3,000
2,000
400
200
Required:
h
1. Prepare a December income statement for the business.
2. Prepare a December statement of owner's equity. The A. Lopez, Capital account balance at December 1 was $0, and the owner
invested $11,600 cash in the company on December 2.
3. Prepare a December 31 balance sheet. Hint Use the A. Lopez, Capital account balance calculated in part 2.
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