Transactions for Wonderland 1. Feb. 1 Alice decided to start a business. She wanted to teach older adults how to use the Internet. She opened an account for Wonderland by depositing $10,000 of her personal funds into a business checking account 2. Feb. 2 Alice wrote a check for $900 for 3 months rent for an office. 3. Feb. 3 She bought a van for $3600 paying $600 now and signing a note for the remainder. She thinks the van will last for 3 years. I 4. Feb. 4 She equipped the van with her old desktop computer and a laptop computer. The desktop cost her $2000 two years ago. Its fair market value is $500. The laptop cost $1900 new. Its fair market value is $400. She thinks she will have to replace both of them in two years. 5. Feb. 5 She printed and distributed advertising flyers. The flyers cost $13. Use the last two digits of your student ID. 6. Feb. 15 She provided services for $650 cash. 7. Feb. 16 8. Feb. 18 She charged automobile expenses of $30.00 She provided services for $300 on credit. 9. Feb. 28 She prepared the end of the month adjusting entries (recognized she'd used up 1 month's rent and depreciated the van and equipment for one month.) Enter all transactions on the spreadsheet. Prepare an Income Statement, Statement of Retained Earnings, Balance Sheet and Statement of Cash Flows.
Transactions for Wonderland 1. Feb. 1 Alice decided to start a business. She wanted to teach older adults how to use the Internet. She opened an account for Wonderland by depositing $10,000 of her personal funds into a business checking account 2. Feb. 2 Alice wrote a check for $900 for 3 months rent for an office. 3. Feb. 3 She bought a van for $3600 paying $600 now and signing a note for the remainder. She thinks the van will last for 3 years. I 4. Feb. 4 She equipped the van with her old desktop computer and a laptop computer. The desktop cost her $2000 two years ago. Its fair market value is $500. The laptop cost $1900 new. Its fair market value is $400. She thinks she will have to replace both of them in two years. 5. Feb. 5 She printed and distributed advertising flyers. The flyers cost $13. Use the last two digits of your student ID. 6. Feb. 15 She provided services for $650 cash. 7. Feb. 16 8. Feb. 18 She charged automobile expenses of $30.00 She provided services for $300 on credit. 9. Feb. 28 She prepared the end of the month adjusting entries (recognized she'd used up 1 month's rent and depreciated the van and equipment for one month.) Enter all transactions on the spreadsheet. Prepare an Income Statement, Statement of Retained Earnings, Balance Sheet and Statement of Cash Flows.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Transactions for Wonderland
1. Feb. 1 Alice decided to start a business. She wanted to teach older adults how to
use the Internet. She opened an account for Wonderland by depositing $10,000 of
her personal funds into a business checking account
2.
Feb. 2 Alice wrote a check for $900 for 3 months rent for an office.
3. Feb. 3 She bought a van for $3600 paying $600 now and signing a note for the
remainder. She thinks the van will last for 3 years.
I
4. Feb. 4 She equipped the van with her old desktop computer and a laptop
computer. The desktop cost her $2000 two years ago. Its fair market value is
$500. The laptop cost $1900 new. Its fair market value is $400. She thinks she
will have to replace both of them in two years.
5. Feb. 5 She printed and distributed advertising flyers.
The flyers cost $13. Use the last two digits of your student ID.
6.
Feb. 15 She provided services for $650 cash.
7. Feb. 16
8. Feb. 18
She charged automobile expenses of $30.00
She provided services for $300 on credit.
9. Feb. 28
She prepared the end of the month adjusting entries (recognized she'd
used up 1 month's rent and depreciated the van and equipment for one month.)
Enter all transactions on the spreadsheet.
Prepare an Income Statement, Statement of Retained Earnings, Balance
Sheet and Statement of Cash Flows.
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