Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follow Cash $10,000 $20,000 Accounts Receivable Supplies on Hand $15,000 Prepaid Insurance Notes Payable Accounts Payable Capital Stock Retained Earnings $5,000 $10,000 $10,000 $25,000 $5,000 During August the following transactions occurred: Aug. 6 Rendered services for various clients on account for $10,890. Aug. 13 Received $2,500 on account from clients. Aug. 18 Paid $4,080 on accounts payable. Aug. 18 Paid miscellaneous expenses, $1,200. Aug. 31 Determined that $4,080 insurance premiums expired during August Aug. 31 Determined that supplies on hand at August 31 amounted to $10,890 Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ 4110 Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $ 920 Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ [ 1500 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? $ 15920 Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $ 31500
Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follow Cash $10,000 $20,000 Accounts Receivable Supplies on Hand $15,000 Prepaid Insurance Notes Payable Accounts Payable Capital Stock Retained Earnings $5,000 $10,000 $10,000 $25,000 $5,000 During August the following transactions occurred: Aug. 6 Rendered services for various clients on account for $10,890. Aug. 13 Received $2,500 on account from clients. Aug. 18 Paid $4,080 on accounts payable. Aug. 18 Paid miscellaneous expenses, $1,200. Aug. 31 Determined that $4,080 insurance premiums expired during August Aug. 31 Determined that supplies on hand at August 31 amounted to $10,890 Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ 4110 Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $ 920 Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ [ 1500 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? $ 15920 Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $ 31500
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter18: Acquiring Capital For Growth And Development
Section: Chapter Questions
Problem 1MP
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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
$10,000
$20,000
$15,000
$5,000
$10,000
$10,000
$25,000
$5,000
Cash
Accounts Receivable
Supplies on Hand
Prepaid Insurance
Notes Payable
Accounts Payable
Capital Stock
Retained Earnings
During August the following transactions occurred:
Aug. 6 Rendered services for various clients on account for $10,890.
Aug. 13 Received $2,500 on account from clients.
Aug. 18 Paid $4,080 on accounts payable.
Aug. 18 Paid miscellaneous expenses, $1,200.
Aug. 31 Determined that $4,080 insurance premiums expired during August
Aug. 31 Determined that supplies on hand at August 31 amounted to $10,890
Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ 4110
Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $| 920
Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ 1500
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?
15920
31500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fa072c0-a0c4-4988-9688-edbe18b8bc58%2F4edcc25b-a162-4a86-81d1-89c86b19d0c5%2Fsmiswlg_processed.jpeg&w=3840&q=75)
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
$10,000
$20,000
$15,000
$5,000
$10,000
$10,000
$25,000
$5,000
Cash
Accounts Receivable
Supplies on Hand
Prepaid Insurance
Notes Payable
Accounts Payable
Capital Stock
Retained Earnings
During August the following transactions occurred:
Aug. 6 Rendered services for various clients on account for $10,890.
Aug. 13 Received $2,500 on account from clients.
Aug. 18 Paid $4,080 on accounts payable.
Aug. 18 Paid miscellaneous expenses, $1,200.
Aug. 31 Determined that $4,080 insurance premiums expired during August
Aug. 31 Determined that supplies on hand at August 31 amounted to $10,890
Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ 4110
Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $| 920
Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ 1500
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?
15920
31500
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