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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 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

FINANCIAL ACCOUNTING
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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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
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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