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 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.

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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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.

**Balance Sheet Template**

**Date, Year**

---

**Assets:**

- **Cash:**
- **Accounts Receivable:**
- **Supplies:**
- **Equipment:**

**Total Assets:** 0

---

**Liabilities:**

- **Accounts Payable:**
- **Notes Payable:**

**Total Liabilities:** 0

---

**Owner's Equity:**

- **Michael Suze, Capital:**

**Total Liabilities & Owner's Equity:** 0

---

This is a standard balance sheet template used to outline a company's financial position at a specific point in time. It includes sections for assets, liabilities, and owner's equity. Each section details specific accounts, and the totals for assets, liabilities, and owner’s equity should balance out to ensure that assets equal liabilities plus owner's equity. Editable sections are provided for inputting values.

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