Ledger Use the drop-downs to select the accounts properly included on the income st or post-closing balances will appear for each account, based on your selection. Post-closing Revenues Expenses Net income Journal Income Statement For Month Ended December 31 $ $ Statement 0 0 0 0 0 0 0 0 0 $ CA Earnings 0

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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A dog training business began on December 1. The following transactions occurred during its first month.
December 1 Receives $21,000 cash as an owner investment in exchange for common stock.
December 2 Pays $6,120 cash for equipment.
December 3 Pays $3,660 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1.
December 4 Pays $1,020 cash for December rent expense.
December 7 Provides all-day training services for a large group and immediately collects $1,150 cash.
December 8 Pays $205 cash in wages for part-time help.
December 9 Provides training services for $2,420 and rents training equipment for $610. The customer is billed $3,030
for these services.
December 19 Receives $3,030 cash from the customer billed on Dec. 9.
December 20 Purchases $2,010 of supplies on credit from a supplier.
December 23 Receives $1,620 cash in advance of providing a 4-week training service to a customer.
December 29 Pays $1,305 cash as a partial payment toward the accounts payable of Dec. 20.
December 30 Distributed a $505 cash dividend to the owner.
Information for month-end adjustments follows:
December 31 One month of the 12-month, $3,660 insurance policy is expired by December 31. This leaves $3,355 not yet
expired.
December 31 A physical count of supplies on December 31 shows that only $1,205 of supplies remain of the $2,010 supplies
purchased.
December 31 The $6,120 of equipment purchased at the beginning of December has a useful life of 5 years and will be
worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate
the $6,120 net cost over 60 months. On December 31, 1 month of depreciation must be recorded.
December 31 The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of
$1,620 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned
one-fourth of the fee. No revenue is yet recorded.
December 31
December 31
On December 31, wages of $605 are owed to a part-time employee for work done over the past 3 weeks. Those
wages are not yet paid or recorded.
The business agreed to provide 6 weeks of training services to a customer for a fee of $4,230, or $705 per
week. The customer agrees to pay the full $4,230 at the end of 6 weeks when services are complete. By
December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or
recorded the 2 weeks of services provided.
Transcribed Image Text:A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $21,000 cash as an owner investment in exchange for common stock. December 2 Pays $6,120 cash for equipment. December 3 Pays $3,660 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1. December 4 Pays $1,020 cash for December rent expense. December 7 Provides all-day training services for a large group and immediately collects $1,150 cash. December 8 Pays $205 cash in wages for part-time help. December 9 Provides training services for $2,420 and rents training equipment for $610. The customer is billed $3,030 for these services. December 19 Receives $3,030 cash from the customer billed on Dec. 9. December 20 Purchases $2,010 of supplies on credit from a supplier. December 23 Receives $1,620 cash in advance of providing a 4-week training service to a customer. December 29 Pays $1,305 cash as a partial payment toward the accounts payable of Dec. 20. December 30 Distributed a $505 cash dividend to the owner. Information for month-end adjustments follows: December 31 One month of the 12-month, $3,660 insurance policy is expired by December 31. This leaves $3,355 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,205 of supplies remain of the $2,010 supplies purchased. December 31 The $6,120 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,120 net cost over 60 months. On December 31, 1 month of depreciation must be recorded. December 31 The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,620 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded. December 31 December 31 On December 31, wages of $605 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded. The business agreed to provide 6 weeks of training services to a customer for a fee of $4,230, or $705 per week. The customer agrees to pay the full $4,230 at the end of 6 weeks when services are complete. By December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided.
Requirement
Post-closing
Revenues
Expenses
General
Journal
Net income
General
Ledger
Trial Balance
Use the drop-downs to select the accounts properly included on the income statem
or post-closing balances will appear for each account, based on your selection.
Income Statement
For Month Ended December 31
Income
Statement
$
$
0
0
0
0
0
0
0
0
0
St Retained
Earnings
$
Balance
0
Transcribed Image Text:Requirement Post-closing Revenues Expenses General Journal Net income General Ledger Trial Balance Use the drop-downs to select the accounts properly included on the income statem or post-closing balances will appear for each account, based on your selection. Income Statement For Month Ended December 31 Income Statement $ $ 0 0 0 0 0 0 0 0 0 St Retained Earnings $ Balance 0
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