Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May:1. Received cash from owner as additional investment, $55,000.2. Paid creditors on account, $7,000.3. Billed customers for services on account, $2,565.4. Received cash from customers on account, $8,450.5. Paid cash to owner for personal use, $2,500.6. Received the utility bill, $160, to be paid next month.Indicate the effect of each transaction on the accounting equation by:1. Accounting equation element type: (A) assets, (L) liabilities, (OE) owner's equity, (R) revenue, and (E) expense2. Name of accounting equation element.3. The amount of the transaction.4. Indicate the direction of change in the account that is affected.Note: Each transaction has two entries. Enter all amounts as positive numbers.EntryEntryAccountingAccountingName ofName ofEquationEquationIncrease orIncrease orAccountingAccountingElement TypeElement TypeAmountDecreaseAmountDecreaseEquation ElementEquation Element(1)(3)(4)(1)(3)(4)(2)(2)$43242$

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…

Answered: Daniels Company is owned and operated…

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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The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $10,750 cash in the company in exchange for common stock. b. The company purchased office supplies for $312 cash. c. The company purchased $5,945 of office equipment on credit. d. The company received $1,268 cash as fees for services provided to a customer. e. The company paid $5,945 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,279 as fees for services provided. g. The company paid $520 cash for the monthly rent. h. The company collected $957 cash as partial payment for the account receivable created in transaction f. i. The company paid a $1,000 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and…
Journalize the following: 1. On the books & records of Company A: On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April May 2. On the books & records of Company A: In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. In March, Company A sold Investment in XYZ for $150. Payment was received in cash. 3. On the books & records of Company A: On April 1st, Company A paid $1,200 for insurance expense that covers the year 4/1/17-3/31/18. Record 4/1/17 entry for payment of $1,200 Record 4/30/17 journal entry 4. There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund…
Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July: Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock. Borrowed $120,000 by issuing a note payable. Received cash from fees earned, $40,000. Paid rent on office and equipment for the month, $5,000. Provided service to customers on account, $ 20,000. Paid automobile expense for the month, $3,500, and miscellaneous expense, $1,000. Paid office salaries, $6,500. Paid interest on the note payable, $500. Purchased land as a future building site, paying cash of $100,000. Paid dividends, $3,000. Instructions Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework
Omega Transportation Inc., headquartered in Atlanta, Georgia, uses accrual-basis accounting and engaged in the following transactions: • billed customers $2,413,650 for transportation services collected cash from customers in the amount of $1,381,975 • purchased fuel supplies for $1,333,800 cash • used fuel supplies that cost $1,304,750 . • employees earned salaries of $297,100 • paid employees $280,300 cash for salaries Required: Determine the amount of sales revenue and total expenses for Omega's income statement. Sales Revenue Total Expenses $
Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery Service during May:1. Received cash from owner as additional investment, $18,000.2. Paid advertising expense, $4,850.3. Purchased supplies on account, $2,100.4. Billed customers for delivery services on account, $14,700.5. Received cash from customers on account, $8,200.Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner’s Equity, Drawing, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to(1) follows:(1) Asset (Cash) increases by $18,000; Owner’s Equity (Katie Wyer, Capital) increases by $18,000.
On July 3, the ABC Company received $865 in cash on account from customers. Thecorrect journal entry to record this transaction is:?
Transactions; Financial Statements On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $26,000 in exchange for common stock. Purchased supplies on account, $2,620. Paid creditor on account, $1,660. Earned sales commissions, receiving cash, $26,750. Paid rent on office and equipment for the month, $5,240. Paid dividends, $8,000. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200. Paid office salaries, $3,160. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740. Required: Question Content Area 1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers using a minus sign. 2. Prepare an income statement for April.
The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,390 from a local bank on a note due in six months. b. Received $5,080 cash from investors and issued common stock to them. c. Purchased $1,900 in equipment, paying $650 cash and promising the rest on a note due in one year. d. Paid $750 cash for supplies. e. Bought and received $1,150 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginni Debit Beginning Balance Ending Balance Debit F Cash Equipment Credit Credit Debit Beginning Balance Ending Balance Debit Supplies Accounts Payable
The October transactions were as follows. Oct. 5 Received $1,510 in cash from customers for accounts receivable due. 10 Billed customers for services performed $5,050. 15 Paid employee salaries $1,110. 17 Performed $570 of services in exchange for cash. 20 Paid $1,980 to creditors for accounts payable due. 29 Paid a $300 cash dividend. 31 Paid utilities $320.
Use the following information for Exercises 13-14 below. (Algo) Skip to question [The following information applies to the questions displayed below.]The transactions of Spade Company appear below. K. Spade, owner, invested $13,500 cash in the company in exchange for common stock. The company purchased supplies for $392 cash. The company purchased $7,466 of equipment on credit. The company received $1,593 cash for services provided to a customer. The company paid $7,466 cash to settle the payable for the equipment purchased in transaction c. The company billed a customer $2,862 for services provided. The company paid $535 cash for the monthly rent. The company collected $1,202 cash as partial payment for the account receivable created in transaction f. The company paid a $1,100 cash dividend to the owner (sole shareholder).
Yard Professionals Incorporated experienced the following events in Year 1, its first year of operation: 1. Performed services for $26,000 cash. 2. Purchased $4,800 of supplies on account. 3. A physical count on December 31, Year 1, found that there was $1,040 of supplies on hand. Required: Based on this information alone: a. Record the events under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting per c. What is the balance in the Supplies account as of January 1, Year 2? d. What is the balance in the Supplies Expense account as of January 1, Year 2? Complete this question by entering your answers in the tabs below. Req A Req B1 Income statement Event Req B2 Balance sheet 1. Provided service 2. Purchased supplies 3. Used supplies Totals Record the events under an accounting equation. Note: Not all cells require input. Enter any decreases to account balances with a minus sign. Req B3 Statement of cash flows Cash…
Brian Sipe began operations of his business, Sipe Sons Incorporated, on January 1, Year One. During the year, the company performed services on credit of $192,000. Of that amount, $115,750 was collected in cash during the year. Brian estimates, of the remaining amount due, $5,100 may not be collected. Prepare the entries for the events during year one What is the balance in the accounts receivable account? What is the amount of receivables reported on the balance sheet? Why would Brian have a separate allowance account and not reduce the receivable balance for the amount estimated to e uncollectible? What type of account is Allowance for Doubtful Accounts

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