Required information[The following information applies to the questionsdisplayed below.]Lawson Consulting, which began operations on December 1,had the following accounts and amounts on December31. The I. Lawson, Capital account balance at December 1was $0 and the owner invested $19,130 cash in the companyon December 2. On December 31, the company's accountsand amounts for the month of December are shown in thetable below:$ 11,500 I. Lawson, Withdrawals5,800 Services revenue7,800 Rent expense4,170 Wages expense19,130Cash$ 2Accounts receivable15EquipmentAccounts payableI. Lawson, Capital8Use the above information to prepare a December 31balance sheet for Lawson Consulting. Hint: The ending I.Lawson, Capital account balance as of December 31 is$20,930.Answer is not complete.LAWSON CONSULTINGBalance SheetAs of December 31Assets:V Liabilities:Cash11,500Accounts payable4,170Accounts receivable5,800Equipment7,800Equity:I. Lawson, Capital20,930Total equity20,930$25,10025,100 Required information[The following information applies to the questionsdisplayed below.]Lawson Consulting, which began operations on December 1,had the following accounts and amounts on December31. The I. Lawson, Capital account balance at December 1was $0 and the owner invested $19,130 cash in the companyon December 2. On December 31, the company's accountsand amounts for the month of December are shown in thetable below:$ 11,500 I. Lawson, Withdrawals5,800 Services revenue7,800 Rent expense4,170 Wages expense19,130$ 2,80015,9003,300CashAccounts receivableEquipmentAccounts payableI. Lawson, Capital8,000e the above information to prepare a December 31ance sheet for Lawson Consulting. Hint: The ending I.Ison, Capital account balance as of December 31 is),930.Answer is not complete.LAWSON CONSULTINGBalance SheetAs of December 31ets:Liabilities:$11,500Accounts payable$4,170bunts receivable5,800ipment7,800Equity:I. Lawson, Capital20,930Total equity20,93025,10025,100000%24

Name: Required information[The following information applies to the questio
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Required information[The following information applies to the questionsdisplayed below.]Lawson Consulting, which began operations on December 1,had the following accounts and amounts on December31. The I. Lawson, Capital account balance at December

The balance sheet represents the financial position of the business with assets and liabilities on a…

Business

Accounting

Lawson Consulting, which began operations on December 1, had the following accounts and amounts on December 31. The I. Lawson, Capital account balance at December 1 was $0 and the owner invested $19,130 cash in the company on December 2. On December 31, the company's accounts and amounts for the month of December are shown in the table below: $ 11,500 I. Lawson, Withdrawals 5,800 Services revenue 7,800 Rent expense 4,170 Wages expense 19,130 Cash $ 2 Accounts receivable Equipment Accounts payable I. Lawson, Capital 253 co

Lawson Consulting, which began operations on December 1, had the following accounts and amounts on December 31. The I. Lawson, Capital account balance at December 1 was $0 and the owner invested $19,130 cash in the company on December 2. On December 31, the company's accounts and amounts for the month of December are shown in the table below: $ 11,500 I. Lawson, Withdrawals 5,800 Services revenue 7,800 Rent expense 4,170 Wages expense 19,130 Cash $ 2 Accounts receivable Equipment Accounts payable I. Lawson, Capital 253 co

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company has three employees, each of whom has been employed since January 1, earns $2,850 per month, and is paid on the last day of each month. On March 1, the following accounts and balances appeared in its ledger. a. Employees' Income Taxes Payable, $1,103.30 (liability for February). b. El Payable, $340.63 (liability for February). c. CPP Payable, $759.82 (liability for February). d. Employees' Medical Insurance Payable, $1,660.00 (liability for January and February). During March and April, the company completed the following related to payroll. Mar. 17 Issued cheque #320 payable to the Receiver General for Canada. The cheque was in payment of the February employee income taxes, El, and CPP amounts due. Mar. 31 Prepared a general journal entry to record the March payroll register, which had the following column totals: EI $141.93 Income Taxes $1,103.30 CPP $379.91 Medical Insurance $415.00 Total Deductions $2,040.14 Net Pay $6,509.86 Office Salaries $2,850.00 Shop Salaries…
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $13,500 of common stock for cash. Recognized $68,500 of service revenue earned on account. Collected $60,800 from accounts receivable. Paid operating expenses of $35,600. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $76,000 of service revenue on account. Collected $68,800 from accounts receivable. Determined that $970 of the accounts receivable were uncollectible and wrote them off. Collected $200 of an account that had previously been written off. Paid $49,200 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0…
The following information is taken from the accrual accounting records of Kroger Sales Company:a. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next2 months (February andMarch). The supplies will be used evenly over the next 2 months.b. Kroger pays its employees at the end of each month for salaries earned during that month.Salaries paid at the end of February and March amounted to $4,925 and $5,100, respectively.c. Kroger placed an advertisement in the local newspaper during March at a cost of $850. Thead promoted the pre-spring sale during the last week in March. Kroger did not pay for thenewspaper ad until mid-April.Required:1. Under cash-basis accounting, how much expense shouldKroger report for February andMarch?2. Under accrual-basis accounting, how much expense should Kroger report for February andMarch?3. CONCEPTUAL CONNECTION Which basis of accounting provides the most useful informationfor decision-makers? Why?
On December 31, Year 2, Kimberly Company had the following normal account balances in its general ledger. The accounts are listed in random order. Salaries expense $ 18,900 Buildings 87,000 Retained earnings 1/1/Year 2 17,000 Operating expense 103,900 Cash 27,000 Accounts payable 16,000 Bonds payable 32,000 Accounts receivable 26,000 Common stock 57,000 Sales revenue 157,000 Prepaid rent 16,200 Required: Use the information regarding normal account balances to prepare a trial balance
am. 295.
Festivus Company has working capital of $140,680 on December 30. On December 31 it has the following transactions: An account payable for $10,000 is paid off An account receivable of $1,000 is written off (Festivus does not use the direct write-off method) $16,600 more inventory is purchased on account. If Account Payable balance on December 30th is $10,000 what is the Days Accounts Payable are outstanding? Use ending balance of AP instead of the average. Festivus' Gross profit percentage is
WHAT IS THE INCOME STATEMENT FOR THE FOLLOWING During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $60,000, in exchange for 6,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $3,500 July 5 Paid the premium on a 1-year insurance policy, $4,200 July 7 Purchased supplies on account from Little Company, $1,000. July 10 Paid employee salaries, $3,500 July 14 Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1. Note: Use accounts payable for the balance due. July 15 Received cash for preparing tax returns for the first half of July, $8,000 July 19 Made payment on account to Lake Company, $500. July 31 Received cash for preparing tax returns for the last half of…
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13 Wrote off account of Dean Sheppard, $8,290. May 15 Received $420 as partial payment on the $7,220 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27 Received $8,290 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $2,280 Duane DeRosa 3,535 Teresa Galloway 4,625 Ernie Klatt 1,095 Marty Richey 1,800 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Required: A. Journalize the transactions under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the transactions under the allowance method.…
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation. Events Affecting Year 1 Provided $33,520 of cleaning services on account. Collected $26,816 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 Wrote off a $251 account receivable that was determined to be uncollectible. Provided $39,118 of cleaning services on account. Collected $34,619 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Required Record the events for Year 1 and Year 2 (including closing entries for Year 1) in T-accounts. Determine the following amounts: (1) Net income for Year 1. (2) Net cash flow from operating activities for Year 1. (3) Balance of accounts…
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $13,500 of common stock for cash. Recognized $68,500 of service revenue earned on account. Collected $60,800 from accounts receivable. Paid operating expenses of $35,600. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $76,000 of service revenue on account. Collected $68,800 from accounts receivable. Determined that $970 of the accounts receivable were uncollectible and wrote them off. Collected $200 of an account that had previously been written off. Paid $49,200 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0…
In the first month of operations for Sheffield Industries, the total of the debit entries to the cash account amounted to $ 35800 ($ 15600 investment by the owner and revenues of $ 20200). The total of the credit entries to the cash account amounted to $ 22000 (purchase of equipment $ 9000 and payment of expenses $ 13000). At the end of the month, the cash account has a(n) O $6400 debit balance. O $ 13800 credit balance. O $ 6400 credit balance. O $ 13800 debit balance.
Vulcan Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $80,000 of services on account. 2. Collected $48,000 cash from accounts receivable. 3. Paid $32,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0 to 30 31 to 60 61 to 90 Over 90 days Amount $23,680 1,600 2,240 1,920 2,560 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.30 0.50 Allowance Balance Required a. Record the given transactions in general journal form and post to T-accounts. b. Prepare the income statement for Vulcan Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1?