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Complete requirement 3

Complete requirement 3

FINANCIAL ACCOUNTING
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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Complete requirement 3

Alignment Number Styles Cells Editing fox C C DE H. J KL M N Q S TU V W Y The following amounts summarize the financial position of Little Black Dog Inc. on May 31, 2021: Assets Liabilities Shareholders' Equity Computers (net) Accounts Accounts Note Salaries Interest Common Retained Cash + + Supplies + Land = Receivable Payable Payable Payable Payable Shares Earnings Balance 1820 700 70 8400 5600 2800 2590 During June 2021, the business completed these transactions: June 1: Received cash of $6300 and issued common shares. June 1: Bought two computers for a total of $5600 by paying $1400 down and signing a note payable for the rest. Interest of 5% to be paid with the 1 note payable on January 1, 2022. The computers are expected to last 3 years. June 5: Performed services for a client and received cash of $4550. June 9: Paid $2450 on accounts payable. 14 June 13: Purchased supplies on account, $1400. 15 June 20: Collected cash from a customer on account, $350. 16 June 23: Consulted on the design of a business report, and billed the client for services rendered, $2800. June 25: Declared and paid a cash dividend of $980. June 30: Recorded the following business expenses for the month: paid office rent, $700; paid advertising, $350. June 30: Accrued $3500 in employee salaries. Employees are paid on the first day of each month. 17 18 19 20 June 30: A count revealed that $770 worth of supplies are still on hand. Instructions Problem Answer Font Alignment Number Styles Cells fx C DE June 30: A count revealed that $770 worth of supplies are still on hand. H. J K LM O P Q R TU V W 2 Other Information: 23 24 25 1) In the past, Little Black Dog Inc. has used the following accounts on their income statement: Revenue, Depreciation Expense, Supplies Expense, Interest Expense, Rent Expense, Salaries Expense, Advertising Expense, and Supplies Expense. They use the Dividends account to record dividends. Not all accounts have been used each period. 26 27 Required: 1) Create all necessary journal entries for the month of June 2021. Place your answer under "Requirement 1" in the “Answer“ tab. Note that the dates have been pre-populated. Ensure your journal entries match the appropriate date. Explanations are not required. 28 29 30 2) Analyze the effects of the above transactions on the accounting equation. Place your answer under "Requirement 2" in the "Answer" tab. 3) Prepare the Income Statement for the month ended June 30, 2021. List expenses in decreasing order by amount. Place your answer under "Requirement 3" in the "Answer“ tab. 31 32 4) Prepare the Statement of Retained Earnings for the month ended June 30, 2021. Place your answer under "Requirement 4" in the "Answer" tab." 33 34 5) Prepare the Balance Sheet at June 30, 2021. Place your answer under “Requirement 5“ in the "Answer" tab. 6) Using the method outlined in the textbook, journalize the necessary closing entries for the month ended June 30, 2021. Place your answer under "Requirement 6“ in the "Answer" tab. 35 36 37 38 39 40 Instructions Problem Answer 127
Transcribed Image Text:Alignment Number Styles Cells Editing fox C C DE H. J KL M N Q S TU V W Y The following amounts summarize the financial position of Little Black Dog Inc. on May 31, 2021: Assets Liabilities Shareholders' Equity Computers (net) Accounts Accounts Note Salaries Interest Common Retained Cash + + Supplies + Land = Receivable Payable Payable Payable Payable Shares Earnings Balance 1820 700 70 8400 5600 2800 2590 During June 2021, the business completed these transactions: June 1: Received cash of $6300 and issued common shares. June 1: Bought two computers for a total of $5600 by paying $1400 down and signing a note payable for the rest. Interest of 5% to be paid with the 1 note payable on January 1, 2022. The computers are expected to last 3 years. June 5: Performed services for a client and received cash of $4550. June 9: Paid $2450 on accounts payable. 14 June 13: Purchased supplies on account, $1400. 15 June 20: Collected cash from a customer on account, $350. 16 June 23: Consulted on the design of a business report, and billed the client for services rendered, $2800. June 25: Declared and paid a cash dividend of $980. June 30: Recorded the following business expenses for the month: paid office rent, $700; paid advertising, $350. June 30: Accrued $3500 in employee salaries. Employees are paid on the first day of each month. 17 18 19 20 June 30: A count revealed that $770 worth of supplies are still on hand. Instructions Problem Answer Font Alignment Number Styles Cells fx C DE June 30: A count revealed that $770 worth of supplies are still on hand. H. J K LM O P Q R TU V W 2 Other Information: 23 24 25 1) In the past, Little Black Dog Inc. has used the following accounts on their income statement: Revenue, Depreciation Expense, Supplies Expense, Interest Expense, Rent Expense, Salaries Expense, Advertising Expense, and Supplies Expense. They use the Dividends account to record dividends. Not all accounts have been used each period. 26 27 Required: 1) Create all necessary journal entries for the month of June 2021. Place your answer under "Requirement 1" in the “Answer“ tab. Note that the dates have been pre-populated. Ensure your journal entries match the appropriate date. Explanations are not required. 28 29 30 2) Analyze the effects of the above transactions on the accounting equation. Place your answer under "Requirement 2" in the "Answer" tab. 3) Prepare the Income Statement for the month ended June 30, 2021. List expenses in decreasing order by amount. Place your answer under "Requirement 3" in the "Answer“ tab. 31 32 4) Prepare the Statement of Retained Earnings for the month ended June 30, 2021. Place your answer under "Requirement 4" in the "Answer" tab." 33 34 5) Prepare the Balance Sheet at June 30, 2021. Place your answer under “Requirement 5“ in the "Answer" tab. 6) Using the method outlined in the textbook, journalize the necessary closing entries for the month ended June 30, 2021. Place your answer under "Requirement 6“ in the "Answer" tab. 35 36 37 38 39 40 Instructions Problem Answer 127
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