First hint: The Cash column should equal $49,910, A/R $900, Supplies $800, Equipment $5200 (these are all under Assets and the balance along the bottom should equal these amounts) 2nd hint: A/P column should be $5200 3rd hint: $9000 wasn't on account....so that means it is cash. Net income=10610 Read the headings. Assets = Liabilities + Owners Equity If you run stuck, please ask. Again, do not wait until the last minute to work on this assignment. Title: Accounting Finance Exercise As an accountant, your new client Michael Suze needs assistance in setting up his books for his business. To do this successfully, you start by showing him how you perform a transaction analysis based on the accounting equation of Assets = Liabilities + Owner’s Equity. You explain to Michael how to show increases and decreases in assets, liabilities and owner’s equity accounts using the analysis template. To help Michael understand transaction analysis, you reconcile each side of the equation by balancing out each column at the end of the transactions. Complete the attached template using the following Accounts: Cash Accounts Receivable Supplies Equipment Accounts Payable Notes Payable Suze, Capital Suze, Drawing Service Revenue Rent Expense Salary Expense Utilities Expense Advertising Expense Assignment Requirements: Record the transactions listed below. Prepare an Income Statement Prepare a Statement of Owner’s Equity Prepare a Balance Sheet 1-July Owner, Michael Suze invested $32,000 in his business, “Be Great Athletics”. 2-July Company paid monthly rent, $1200. 3-July Company bought supplies on account, $800. 5-July Company paid monthly advertising, $1325. 9-July Company performed services, $9,000. 12-July Owner, Michael Suze, withdrew $2,000 for personal use. 15-July Company performed services on account for $7,400. 17-July Company paid monthly salaries, $2,500. 20-July Company made a payment on account, $800. 23-July Company received $6,500 from a customer on account. 26-July Company borrowed $11,000 from local bank. 29-July Company bought equipment on account for $5,200. 30-July Company paid monthly utilities, $765.
First hint: The Cash column should equal $49,910, A/R $900, Supplies $800, Equipment $5200 (these are all under Assets and the balance along the bottom should equal these amounts)
2nd hint: A/P column should be $5200
3rd hint: $9000 wasn't on account....so that means it is cash.
Net income=10610
Read the headings. Assets = Liabilities + Owners Equity
If you run stuck, please ask. Again, do not wait until the last minute to work on this assignment.
Title: Accounting Finance Exercise
As an accountant, your new client Michael Suze needs assistance in setting up his books for his business. To do this successfully, you start by showing him how you perform a transaction analysis based on the
You explain to Michael how to show increases and decreases in assets, liabilities and owner’s equity accounts using the analysis template. To help Michael understand transaction analysis, you reconcile each side of the equation by balancing out each column at the end of the transactions. Complete the attached template using the following Accounts:
- Cash
Accounts Receivable - Supplies
- Equipment
- Accounts Payable
- Notes Payable
- Suze, Capital
- Suze, Drawing
- Service Revenue
- Rent Expense
- Salary Expense
- Utilities Expense
- Advertising Expense
Assignment Requirements:
- Record the transactions listed below.
- Prepare an Income Statement
- Prepare a Statement of Owner’s Equity
- Prepare a
Balance Sheet
|
1-July |
Owner, Michael Suze invested $32,000 in his business, “Be Great Athletics”. |
|
2-July |
Company paid monthly rent, $1200. |
|
3-July |
Company bought supplies on account, $800. |
|
5-July |
Company paid monthly advertising, $1325. |
|
9-July |
Company performed services, $9,000. |
|
12-July |
Owner, Michael Suze, withdrew $2,000 for personal use. |
|
15-July |
Company performed services on account for $7,400. |
|
17-July |
Company paid monthly salaries, $2,500. |
|
20-July |
Company made a payment on account, $800. |
|
23-July |
Company received $6,500 from a customer on account. |
|
26-July |
Company borrowed $11,000 from local bank. |
|
29-July |
Company bought equipment on account for $5,200. |
|
30-July |
Company paid monthly utilities, $765. |
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