December 1 On December 1, Ronnie Walsh forms a consulting business, named Mobility Solutions. Mobility Solutions receives $74,000 cash from Ronnie Walsh as an owner contribution. December 2 Mobility Solutions pays $4,700 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 Mobility Solutions pays $58,000 cash for equipment. December 4 Mobility Solutions purchases $10,450 of supplies on credit from a supplier, CalTech Supply. December 5 Mobility Solutions provides consulting services and immediately collects $6,400 cash. December 6 Mobility Solutions pays $3,200 cash for December rent. December 7 Mobility Solutions pays $1,700 cash for employee salary. December 8 Mobility Solutions provides consulting services of $4,900 and rents its test facilities for $3,600. The customer is billed $8,500 for these services. December 9 Mobility Solutions receives $8,500 cash from the client billed on December 8. December 10 Mobility Solutions pays CalTech Supply $3,100 cash as partial payment for its December 4 $10,450 purchase of supplies. December 11 Ronnie Walsh withdraws $1,600 cash from Mobility Solutions for personal use. December 12 Mobility Solutions receives $4,400 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. December 13 Mobility Solutions pays $4,600 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. December 14 Mobility Solutions pays $2,320 cash for supplies. December 15 Mobility Solutions pays $2,505 cash for December utilities expense. December 16 Mobility Solutions pays $1,800 cash in employee salary for work performed in the latter part of December.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Preparea general ledger for each transaction and identify the financial statement impact of each entry. 

December 1 On December 1, Ronnie Walsh forms a consulting business, named Mobility Solutions. Mobility Solutions
receives $74,000 cash from Ronnie Walsh as an owner contribution.
December 2 Mobility Solutions pays $4,700 cash for supplies. The company's policy is to record all prepaid
expenses in asset accounts.
December 3 Mobility Solutions pays $58,000 cash for equipment.
December 4 Mobility Solutions purchases $10,450 of supplies on credit from a supplier, CalTech Supply.
December 5 Mobility Solutions provides consulting services and immediately collects $6,400 cash.
December 6 Mobility Solutions pays $3,200 cash for December rent.
December 7 Mobility Solutions pays $1,700 cash for employee salary.
December 8 Mobility Solutions provides consulting services of $4,900 and rents its test facilities for $3,600.
The customer is billed $8,500 for these services.
December 9 Mobility Solutions receives $8,500 cash from the client billed on December 8.
December 10 Mobility Solutions pays CalTech Supply $3,100 cash as partial payment for its December 4 $10,450
purchase of supplies.
December 11 Ronnie Walsh withdraws $1,600 cash from Mobility Solutions for personal use.
December 12 Mobility Solutions receives $4,400 cash in advance of providing consulting services to a customer.
The company's policy is to record fees collected in advance in a balance sheet account.
December 13 Mobility Solutions pays $4,600 cash (insurance premium) for a 24-month insurance policy. Coverage
begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet
account.
December 14 Mobility Solutions pays $2,320 cash for supplies.
December 15 Mobility Solutions pays $2,505 cash for December utilities expense.
December 16 Mobility Solutions pays $1,800 cash in employee salary for work performed in the latter part of
December.
Transcribed Image Text:December 1 On December 1, Ronnie Walsh forms a consulting business, named Mobility Solutions. Mobility Solutions receives $74,000 cash from Ronnie Walsh as an owner contribution. December 2 Mobility Solutions pays $4,700 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 Mobility Solutions pays $58,000 cash for equipment. December 4 Mobility Solutions purchases $10,450 of supplies on credit from a supplier, CalTech Supply. December 5 Mobility Solutions provides consulting services and immediately collects $6,400 cash. December 6 Mobility Solutions pays $3,200 cash for December rent. December 7 Mobility Solutions pays $1,700 cash for employee salary. December 8 Mobility Solutions provides consulting services of $4,900 and rents its test facilities for $3,600. The customer is billed $8,500 for these services. December 9 Mobility Solutions receives $8,500 cash from the client billed on December 8. December 10 Mobility Solutions pays CalTech Supply $3,100 cash as partial payment for its December 4 $10,450 purchase of supplies. December 11 Ronnie Walsh withdraws $1,600 cash from Mobility Solutions for personal use. December 12 Mobility Solutions receives $4,400 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. December 13 Mobility Solutions pays $4,600 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. December 14 Mobility Solutions pays $2,320 cash for supplies. December 15 Mobility Solutions pays $2,505 cash for December utilities expense. December 16 Mobility Solutions pays $1,800 cash in employee salary for work performed in the latter part of December.
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education