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Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows: Cash $10,000 $20,000 Accounts Receivable Supplies on Hand $15,000 Prepaid Insurance $5,000 Notes Payable $10,000 $10,000 $25,000 $5,000 Accounts Payable Capital Stock Retained Earnings During August the following transactions occurred: Aug. 6 Rendered services for various clients on account for $10,700. Aug. 13 Received $2,500 on account from clients. Aug. 18 Paid $3,700 on accounts payable. Aug. 18 Paid miscellaneous expenses, $1,200. Aug. 31 Determined that $3,700 insurance premiums expired during August Aug. 31 Determined that supplies on hand at August 31 amounted to $10,700 Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $ 1300 Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ Required 4: If these were all the transactions, what is the amount of total assets at the end of the period? $ [ Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? $ Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $ [ 4300 16300

Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows: Cash $10,000 $20,000 Accounts Receivable Supplies on Hand $15,000 Prepaid Insurance $5,000 Notes Payable $10,000 $10,000 $25,000 $5,000 Accounts Payable Capital Stock Retained Earnings During August the following transactions occurred: Aug. 6 Rendered services for various clients on account for $10,700. Aug. 13 Received $2,500 on account from clients. Aug. 18 Paid $3,700 on accounts payable. Aug. 18 Paid miscellaneous expenses, $1,200. Aug. 31 Determined that $3,700 insurance premiums expired during August Aug. 31 Determined that supplies on hand at August 31 amounted to $10,700 Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $ 1300 Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ Required 4: If these were all the transactions, what is the amount of total assets at the end of the period? $ [ Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? $ Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $ [ 4300 16300

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows: Cash Accounts Receivable Supplies on Hand $10,000 $20,000 $15,000 Prepaid Insurance $5,000 Notes Payable $10,000 $10,000 $25,000 $5,000 Accounts Payable Capital Stock Retained Earnings During August the following transactions occurred: Aug. 6 Rendered services for various clients on account for $10,700. Aug. 13 Received $2,500 on account from clients. Aug. 18 Paid $3,700 on accounts payable. Aug. 18 Paid miscellaneous expenses, $1,200. Aug. 31 Determined that $3,700 insurance premiums expired during August Aug. 31 Determined that supplies on hand at August 31 amounted to $10,700 Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ 4300 Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $ 1300 Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ Required 4: If these were all the transactions, what is the amount of total assets at the end of the period? $ Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? $ 16300 Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $[
Transcribed Image Text:Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows: Cash Accounts Receivable Supplies on Hand $10,000 $20,000 $15,000 Prepaid Insurance $5,000 Notes Payable $10,000 $10,000 $25,000 $5,000 Accounts Payable Capital Stock Retained Earnings During August the following transactions occurred: Aug. 6 Rendered services for various clients on account for $10,700. Aug. 13 Received $2,500 on account from clients. Aug. 18 Paid $3,700 on accounts payable. Aug. 18 Paid miscellaneous expenses, $1,200. Aug. 31 Determined that $3,700 insurance premiums expired during August Aug. 31 Determined that supplies on hand at August 31 amounted to $10,700 Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ 4300 Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $ 1300 Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ Required 4: If these were all the transactions, what is the amount of total assets at the end of the period? $ Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? $ 16300 Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $[
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