The following information is available for two different types of businesses fa business that provides accounting services to small businesses. Sports Clot to college students. Data for Hopkins CPAs 1. Borrowed $106,200 from the bank to start the business. 2. Provided $70,800 of services to clients and collected $59,000 cash. 3. Paid salary expense of $37,760. Data for Sports Clothing 1. Borrowed $106,200 from the bank to start the business. 2. Purchased $70,800 inventory for cash. 3. Inventory costing $30,680 was sold for $59,000 cash. 4. Paid $9,440 cash for operating expenses. Required: a. Prepare an income statement, balance sheet, and statement of cash flows fo

The following information is available for two different types of businesses fa business that provides accounting services to small businesses. Sports Clot to college students. Data for Hopkins CPAs 1. Borrowed $106,200 from the bank to start the business. 2. Provided $70,800 of services to clients and collected $59,000 cash. 3. Paid salary expense of $37,760. Data for Sports Clothing 1. Borrowed $106,200 from the bank to start the business. 2. Purchased $70,800 inventory for cash. 3. Inventory costing $30,680 was sold for $59,000 cash. 4. Paid $9,440 cash for operating expenses. Required: a. Prepare an income statement, balance sheet, and statement of cash flows fo

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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PREPARE FINANCIAL STATEMENT 1.MS. YAMA INVESTED 100,000 CASH TO THE BUSINESS 2.THE BUSINESS PURCHASED SUPPLIES WORTH 60, 000, GUITAR DOC USES THE EXPENSE METHOD 3. TOTAL SERVICE FEES BILLED TO CLIENTS, ON ACCOUNT, AMOUNTED TO 400,000 4. TOTAL COLLECTIONS ON ACCOUNTS RECEIVABLE AMOUNTED TO 270,000 5. MS. YAMA TOOK 60, 000 CASH FROM THE BUSINESS 6. TOTAL SALARIES PAID AMOUNTED TO 180,000 ADDITIONAL INFORMATION: BILLY SHEEHAN ONE OF THE DEBTORS, IS UNDERGOING FINANCIAL DIFFICULTIES. OF THE TOTAL 50,000 ACCOUNTS RECEIVABLE FROM BILLY SHEENAN, ONLY 40, 000 IS SURE OF COLLECTION; 10,000 IS DOUBTFUL UNUSED SUPPLIES AT THE END OF THE PERIOD AMOUNTED TO 20,000 UNPAID EMPLOYEE SALARIES AMOUNTED TO 30,000 REQUIREMENT: JOURNAL ENTRIES POST THE ENTRIES TO THE LEDGER UNADJUSTED TRIAL BALANCE ADJUSTING ENTRIES POST CLOSING TRIAL BALANCE CLOSING ENTRIES BALANCE SHEET AND INCOME STATEMENT
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Which one of the following businesses should use the cash basis for... Which one of the following businesses should use the cash basis for determining assessable income under s 6-5? a. A petrol station. b. A hotel. c. A sole practitioner doctor. d. A large partnership of solicitors with 300 employees.
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A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $27,646 The business purchases supplies on account $994 The business purchases furniture on account $4,914 The business renders services to various clients on account totaling $7,190 The business pays salaries $1,751 The business pays this month’s rent $4,389 The business pays for the supplies purchased on account The business collects from one of its clients for services rendered earlier in the month $1,941 What is total net income for the month?
The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students. Data for Hopkins CPAS Borrowed $95, 400 from the bank to start the business. Provided $63, 600 of services to clients and collected $53,000 cash. Paid salary expense of $33,920. Data for Sports Clothing Borrowed $95,400 from the bank to start the business. Purchased $63,600 inventory for cash. Inventory costing $27,560 was sold for $ 53,000 cash. Paid $8,480 cash for operating expenses. Required: a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.
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JOURNAL ENTRIES, LEDGERS, AND TRIAL BALANCE After opening their computer sales and service store, the Millers completed the following four transactions: 1. They invested $100,000 in cash in the business. 2. They purchased on credit $10,000 worth of goods from several suppliers. 3. They sold on a cash basis $13,000 worth of products and services. 4. They paid $3,000 for salaries. Use the above information to prepare the following: 1. Journal entries 2. Ledgers 3. Trial balance