P1-1A Kinney's Repair Ltd. was started on May 1. A summary of May transactions is presented below. 1. Shareholders invested £10,000 cash in the business in exchange for ordinary shares. 2. Purchased equipment for £5,000 cash. 3. Paid £400 cash for May office rent. 4. Paid £700 cash for supplies. 5. Incurred £250 of advertising costs in the Beacon News on account. 6. Received £4,700 in cash from customers for repair service. 7. Declared and paid a £1,000 cash dividend. 8. Paid part-time employee salaries £1,000. 9. Paid utility bills £160. 10. Performed repair service worth £980 on account. 11. Collected cash of £120 for services billed in transaction (10). Instructions (a) Prepare a tabular analysis of the transactions, using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Share Capital, and Retained Earnings (with separate columns for Revenues, Expenses, and Divi- dends). Include margin explanations for any changes in Retained Earnings. Revenue is called Service Revenue. (b) From an analysis of the Retained Earnings columns, compute the net income or net loss for May.

P1-1A Kinney's Repair Ltd. was started on May 1. A summary of May transactions is presented below. 1. Shareholders invested £10,000 cash in the business in exchange for ordinary shares. 2. Purchased equipment for £5,000 cash. 3. Paid £400 cash for May office rent. 4. Paid £700 cash for supplies. 5. Incurred £250 of advertising costs in the Beacon News on account. 6. Received £4,700 in cash from customers for repair service. 7. Declared and paid a £1,000 cash dividend. 8. Paid part-time employee salaries £1,000. 9. Paid utility bills £160. 10. Performed repair service worth £980 on account. 11. Collected cash of £120 for services billed in transaction (10). Instructions (a) Prepare a tabular analysis of the transactions, using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Share Capital, and Retained Earnings (with separate columns for Revenues, Expenses, and Divi- dends). Include margin explanations for any changes in Retained Earnings. Revenue is called Service Revenue. (b) From an analysis of the Retained Earnings columns, compute the net income or net loss for May.

Name: Law Ltd.E1-17 This information is for Java Company Ltd. for the year
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Description: Law Ltd.E1-17 This information is for Java Company Ltd. for the year ended December 31, 2017(amounts in thousands).Prepare a cash flow statement.(LO 8)Cash received from revenues from customersCash received for issuance of ordinary sharesCash paid f

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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