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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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the numbers filled in are correct the rest i dont understand
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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