Homework Help is Here – Start Your Trial Now!
Business
Accounting
P1-42A Preparing financial statements n Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2014. Land $ 8,000 Owner contribution, 2014 $ 28,000 Notes Payable 32,000 Accounts Payable 11,000 2,600 Accounts Receivable 1,000 Property Tax Expense Wayne, Withdrawals 30,000 Advertising Expense 15,000 Rent Expense 13,000 Building 145,200 Salaries Expense 65,000 Cash 3,000 Salaries Payable 1,300 Equipment 16,000 192,000 Insurance Expense 2,500 Service Revenue 10,000 Interest Expense 7,000 Office Supplies 54,000 Wayne, Capital, 12/31/13 Requirements 1. Prepare Gate City Answering Service's income statement. 2. Prepare the statement of owner's equity. 3. Prepare the balance sheet.

P1-42A Preparing financial statements n Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2014. Land $ 8,000 Owner contribution, 2014 $ 28,000 Notes Payable 32,000 Accounts Payable 11,000 2,600 Accounts Receivable 1,000 Property Tax Expense Wayne, Withdrawals 30,000 Advertising Expense 15,000 Rent Expense 13,000 Building 145,200 Salaries Expense 65,000 Cash 3,000 Salaries Payable 1,300 Equipment 16,000 192,000 Insurance Expense 2,500 Service Revenue 10,000 Interest Expense 7,000 Office Supplies 54,000 Wayne, Capital, 12/31/13 Requirements 1. Prepare Gate City Answering Service's income statement. 2. Prepare the statement of owner's equity. 3. Prepare the balance sheet.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
P1-42A Preparing financial statements r Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2014. $ 8,000 Owner contribution, 2014 $ 28,000 Land Notes Payable 32,000 Accounts Payable 11,000 Property Tax Expense 2,600 Accounts Receivable 1,000 Wayne, Withdrawals 30,000 Advertising Expense 15,000 Rent Expense 13,000 Building 145,200 Salaries Expense 65,000 Cash 3,000 Salaries Payable 1,300 Equipment 16,000 192,000 Insurance Expense 2,500 Service Revenue Office Supplies 10,000 Interest Expense 7,000 54,000 Wayne, Capital, 12/31/13 Requirements 1. Prepare Gate City Answering Service's income statement. 2. Prepare the statement of owner's equity. 3. Prepare the balance sheet.
Transcribed Image Text:P1-42A Preparing financial statements r Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2014. $ 8,000 Owner contribution, 2014 $ 28,000 Land Notes Payable 32,000 Accounts Payable 11,000 Property Tax Expense 2,600 Accounts Receivable 1,000 Wayne, Withdrawals 30,000 Advertising Expense 15,000 Rent Expense 13,000 Building 145,200 Salaries Expense 65,000 Cash 3,000 Salaries Payable 1,300 Equipment 16,000 192,000 Insurance Expense 2,500 Service Revenue Office Supplies 10,000 Interest Expense 7,000 54,000 Wayne, Capital, 12/31/13 Requirements 1. Prepare Gate City Answering Service's income statement. 2. Prepare the statement of owner's equity. 3. Prepare the balance sheet.
P1-46A Using the accounting equation for transaction analysis and preparing financial statements Angela Peters recently opened her own law office, which she operates as a sole proprietorship. The name of the new entity is Angela Peters, Attorney. Peters experienced the following events during the organizing phase of the new business and its first month of operation, March 2014. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business. Sold personal investment in eBay stock, which she had owned for several years, receiving $31,000 cash. Mar. 1 Deposited the $31,000 cash from the sale of the eBay stock in her personal bank account. Deposited $89,000 cash in a new business bank account titled Angela Peters, Attorney. The business gave capital to Peters. 3. Paid $400 cash for ink cartridges for the printer. Purchased computer for the law office, agreeing to pay the account, $9,300, within three months. 9. Received $2,000 cash from customers for services rendered. 15 Received bill from The Lawyer for magazine subscription, $120. Finished court hearings on behalf of a client and submitted a bill for legal services, $13,500, on account. 23 28 Paid bill from The Lawyer. 30 Paid utilities, $1,200. 31 Received $3,000 cash from clients billed on Mar 23. 31 Peters withdrew cash of $2,000. Requirements 1. Analyze the effects of the preceding events on the accounting equation of the sole proprietorship of Angela Peters, Attorney. Use a format similar to Exhibit 1-4. 2. Prepare the following financial statements: a. Income statement b. Statement of owner's equity c. Balance sheet
Transcribed Image Text:P1-46A Using the accounting equation for transaction analysis and preparing financial statements Angela Peters recently opened her own law office, which she operates as a sole proprietorship. The name of the new entity is Angela Peters, Attorney. Peters experienced the following events during the organizing phase of the new business and its first month of operation, March 2014. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business. Sold personal investment in eBay stock, which she had owned for several years, receiving $31,000 cash. Mar. 1 Deposited the $31,000 cash from the sale of the eBay stock in her personal bank account. Deposited $89,000 cash in a new business bank account titled Angela Peters, Attorney. The business gave capital to Peters. 3. Paid $400 cash for ink cartridges for the printer. Purchased computer for the law office, agreeing to pay the account, $9,300, within three months. 9. Received $2,000 cash from customers for services rendered. 15 Received bill from The Lawyer for magazine subscription, $120. Finished court hearings on behalf of a client and submitted a bill for legal services, $13,500, on account. 23 28 Paid bill from The Lawyer. 30 Paid utilities, $1,200. 31 Received $3,000 cash from clients billed on Mar 23. 31 Peters withdrew cash of $2,000. Requirements 1. Analyze the effects of the preceding events on the accounting equation of the sole proprietorship of Angela Peters, Attorney. Use a format similar to Exhibit 1-4. 2. Prepare the following financial statements: a. Income statement b. Statement of owner's equity c. Balance sheet
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS