Selected transactions for Mr. Rahim, an interior decorator, in his first month of business, are as follows. Jan. 2 Invested $20,000 cash in business. 3 Purchased used car for $8,000 cash for use in business. 9 Purchased supplies on credit for $1000. 11 Billed customers $3,600 for services performed. 16 Paid $400 cash for advertising. 20 Received $1400 cash from customers billed on January 11. 23 Paid creditor $600 cash on balance owed. 28 Withdrew $2,000 cash for personal use by owner. Requirements: 1. Analyze the preceding transactions in terms of their effects on the accounting equation. 2. Prepare the income statement, statement of retained earnings, and balance sheet of the business after recording the transactions.

Selected transactions for Mr. Rahim, an interior decorator, in his first month of business, are as follows. Jan. 2 Invested $20,000 cash in business. 3 Purchased used car for $8,000 cash for use in business. 9 Purchased supplies on credit for $1000. 11 Billed customers $3,600 for services performed. 16 Paid $400 cash for advertising. 20 Received $1400 cash from customers billed on January 11. 23 Paid creditor $600 cash on balance owed. 28 Withdrew $2,000 cash for personal use by owner. Requirements: 1. Analyze the preceding transactions in terms of their effects on the accounting equation. 2. Prepare the income statement, statement of retained earnings, and balance sheet of the business after recording the transactions.

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

Accounting During the year, Sam went from Cedar City, Utah to Kona, Hawaii to participate in required business meetings. Preceding five days of business meetings from Monday to Friday, he spent four days vacationing at the beach. Excluding the vacation costs (surfing, fishing, luau, etc.) his expenses for the trip are: Round-trip Airfare (first class, baby) $5,000 Lodging for all 9 days ($350 per day) 3,150 Restaurant Meals for all 9 days ($120 per day) 1,080 Business entertainment expenses 2,000 How much are the deductible expenses for temporary business travel away from home? O $5,128 O 57.128 O 57,350 O $9.350 O None of the above.
You are given the following information on the first month’s trading of Grigory, who is in business as a second-hand furniture dealer. All transactions are on a cash basis. 1 January Grigory paid $5,000 into the business 2 January Bought a motor van for $600 3 January Bought goods for $1,300 4 January Received a loan from Sergei $1,000 repayable within twelve months 10 January Paid expenses on the motor van of $200 13 January Sold goods for $300 20 January Sold goods for $500 24 January Paid storage expenses $150 27 January Repaid Sergei part of his loan $350 30 January Withdrew cash from the business $175 31 January Closing inventory was $800. Prepare Statement of Profit and loss account I am getting a loss of 50. Is it correct ?
Winnie Villanueva is a painting contractor. During the month of April, she completed the following transactions: April 2 Invested in the business painting equipment valued at P12, 300 and placed P71, 000 in abusiness checking account.3 Acquired a service vehicle costing P80, 000. Paid P50, 000 cash and signed a note for thebalance.4 Purchased painting supplies on account for P3, 200.5 Completed a painting job and billed the customer P4, 800.7 Received P1, 500 cash for painting an apartment room.10 Purchased painting supplies for P1, 600 cash.11 Received a P4, 800 check from the customer billed on April 5.12 Paid P4, 000 for an insurance policy for a one-year coverage.13 Billed customer P6, 200 for a painting job.14 Paid the assistant P1, 500 for twenty-five hours’ work.15 Paid P400 for a tune-up of the service vehicle.18 Paid for the painting supplies purchased on April 4.20 Purchased a new ladder for P6, 000 and painting supplies for P2, 900, on account.22 Received a telephone bill…
The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received 58,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $1,000. Mar. 3 Purchased equipment by paying $2,500 cash and executing a note payable for $9,000. Mar, 4 Purchased office supplies for $720 cash. Mar. 5 Billed a client for $12,000 of design services completed. Mar. 6 Received $7,800 on account for the services previously recorded. What is the balance in Cash on March 6? O A. $12,580 O B. $13,300 O C. $11,580 O D. $14,080
Selected transactions for A. Mane, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $13,700 cash in business. 3 Purchased used car for $4,110 cash for use in business. 9 Purchased supplies on account for $685. 11 Billed customers $3,288 for services performed. 16 Paid $480 cash for advertising. 20 Received $959 cash from customers billed on January 11. 23 Paid creditor $411 cash on balance owed. 28 Withdrew $1,370 cash for personal use by owner. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit
On January 12, 2018 Julie prepaid $1,600 for pet care services to be provided each Friday for 8 weeks for her Yellow Lab, Honey. Mookie The Beagle Concierge recorded the entire $1,600 as Sales. At the end of the accounting period on January 31, 3 weeks (01/12, 01/19, 01/26) of the pet care services had been provided to Honey, so 5 weeks of services or $1,000 ($1,600/8 = $200 per week) had not been earned as of the end of January. Since $1,000 had not been earned, the $1,000 is a liability because Mookie The Beagle Concierge has an obligation to provide the pet care services or return the $1,000 to the customer. So an adjusting entry is needed to bring the accounts up to date at January 31. What is the journal entry needed?
Mr. Juan Lopez opened a mini grocery store with business ame lopez Freta Mart. Operations began on Apr 1, 20xX, and the following transactions were completed during the month: 1. The business was registered as single proprietorship with the Department of Trade and Industry, Juan Lope invested P39,000. 2 Bought computer equipment for P10,000 cash. 2 Bought merchandise on account from LOWTOWN Supply Co. P15,900, Term, 2/10, n/30. 3. Bought office supplies on cash basis for P700 4. Sold merchandize on account P15,200 FOB Destination, terms 2/10, n/30. 5. Paid P200 freight on April 4 sale. 6. Received credit memo LOWTOWN Supply Co. for merchandise return P300. 11 Paid LOWTOWN. 13.Collected from April 4 customers. 14 Bought merchandise on cash basis for P14,400. 15Salaries paid P1,500. 16.Borrowed money from RCBC Bank, signed a promissory note for p12,000. 17. Received refund from a supplier on cash purchase of April 14, P500 18. Bought merchandize from MESDA, P14,200 FOB Shipping,…
Jay Crowley established Affordable Realty, which completed the following transactions during the month: Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. Paid rent on office and equipment for the month, $4,800. Purchased supplies on account, $2,150. Paid creditor on account, $1,100. Earned sales commissions, receiving cash, $18,750. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. Paid office salaries, $3,500. Determined that the cost of supplies used was $1,300. Paid dividends, $1,500. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Explanations may be omitted. Prepare T accounts,…
Professor Quark opens his own company, Electronic Tutorial Services, and completes the following transactions in June: 6/1 Quark invests 24,000 into the business. 6/3 Purchased 2,100 of equipment on account. 6/4 Paid 400 premium for a two-year insurance policy. 6/6 Purchased office supplies for cash, 220. 6/9 Purchased a new computer for 6,000. Paid 30% cash agreed to pay the remainder in 30 days. 6/10 Billed student Rashid Ali 30 for tutorial services that were performed. 6/14 Paid for the equipment purchased on June 3rd. 6/15 the owner suggested to purchased new building for his company by 10,000 6/25 Received $35 cash from student Mohammed Nasir for tutorial services performed. 6/30 Student billed on June 10 pays the amount due to Quark. 6/30 Quark withdraws 200 for personal use. Required: Prepare the _journal entries to transactions. record these
Getting ready for the upcoming holiday season is traditionally a busy time for greeting card com-panies, and it was no exception for Kate. The following transactions occurred during the month of October: 1. Hired an assistant at an hourly rate of $10 per hour to help with some of the computer layouts and administrative chores. 2. Supplements her business by teaching a class to aspiring card designers. She charges and receives a total of $450. 3. Delivers greeting cards to several new customers. She bills them a total of $3,500. 4. Pays a utility bill in the amount of $250 that she determines is the business portion of her utility bill. 5. Receives an advance deposit of $500 for a new set of cards she is designing for a new customer. 6. Pays her assistant $200 for the work done this month. 7. Determines that the assistant has worked 10 additional hours this month that have not yet been paid. 8. Ordered and receives additional supplies in the amount of $1,000. These were paid for during…
Mike Greenberg opened Cheyenne Window Washing Co. on July 1, 2020. During July, the following transactions were completed. July 1 Owner invested $9,800 cash in the company. 1 Purchased used truck for $6,560, paying $1,640 cash and the balance on account. 3 Purchased cleaning supplies for $740 on account. 5 Paid $1,440 cash on a 1-year insurance policy effective July 1. 12 Billed customers $3,030 for cleaning services performed. 18 Paid $820 cash on amount owed on truck and $410 on amount owed on cleaning supplies. 20 Paid $1,640 cash for employee salaries. 21 Collected $1,310 cash from customers billed on July 12. 25 Billed customers $2,050 for cleaning services performed. 31 Paid $240 for maintenance of the truck during month. 31 Owner withdrew $490 cash from the company. Date Account Titles and Explanation Debit Credit July 1July…
You are given the following information on the first month’s trading of Grigory, who is in business as a second-hand furniture dealer. All transactions are on a cash basis. 1 January Grigory paid $5,000 into the business 2 January Bought a motor van for $600 3 January Bought goods for $1,300 4 January Received a loan from Sergei $1,000 repayable within twelve months 10 January Paid expenses on the motor van of $200 13 January Sold goods for $300 20 January Sold goods for $500 24 January Paid storage expenses $150 27 January Repaid Sergei part of his loan $350 30 January Withdrew cash from the business $175 31 January Closing inventory was $800. Hi. Prepare Trial Balance.