You must include the required elements in your PDF upload (Journals, TAccounts, TB, Inc Stmt, Stmt RE and Bal Sheet). No PDF of the work and financial statements will result in a 0 for this question. But, if you'd like some early feedback before I complete grading you may enter the following answers: From your trial balance, what are your total debits?(please do not enter the $, just the number) What is the Net Income you calculated?
You must include the required elements in your PDF upload (Journals, TAccounts, TB, Inc Stmt, Stmt RE and Bal Sheet). No PDF of the work and financial statements will result in a 0 for this question. But, if you'd like some early feedback before I complete grading you may enter the following answers: From your trial balance, what are your total debits?(please do not enter the $, just the number) What is the Net Income you calculated?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
As well as include total equity
Transcribed Image Text:Detailed Oriented Company (DOC) was formed at the end of December 2021 by Bob
and Sharon. The company performs consulting services to it's customers.
Below are transactions that occurred during the accounting period, which is the year
of 2021. The 000's have been dropped to make the problem easier.
a) Bob contributed cash of $100 and Sharon contributed a Vehicle worth $100 to the
company. D OC issued common stock to both owners.
b) At the end of December, DOC pays $6 for an insurance policy. The policy is for the
next accounting period and is effective Jan 1, 2022 until March 31, 2022.
c) DOC pays Rent for the Current accounting period (2021) of $28.
d) Doc pays Utilities of $8 for the current 2021 accounting period.
e) Doc completes consulting services on account for customer #1 in the amount of
$50.
f) DOC pays employees $20 for wages during the current accounting period.
g) DOC purchases consulting supplies on account from Company X for $10. The
supplies will not be used until the next accounting period.
h) DOC buys expensive computer equipment for $40. The company pays $12 in cash.
The rest is financed with a loan and payments of interest and principle will begin in
the next accounting period.
i) The customer from "E" makes a partial cash payment to DOC of $20
Transcribed Image Text:i) The customer from "E" makes a partial cash payment to DOC of $20
j) DOC makes a partial cash payment to Company X of $4 for the supplies previously
purchased.
k) DOC completes consulting services for Customer #2 in the amount of $22 and is
paid cash by Customer #2
I) DOC pays the owners a dividend of $8 (in total not each)
m) A new customer pays $14 cash in advance to DOC for consulting services to be
performed in the next accounting period.
You must include the required elements in your PDF upload (Journals, TAccounts, TB,
Inc Stmt, Stmt RE and Bal Sheet). No PDF of the work and financial statements will
result in a 0 for this question.
But, if you'd like some early feedback before I complete grading you may enter the
following answers:
From your trial balance, what are your total debits?(please do not enter the $, just the
number)
What is the Net Income you calculated?
Expert Solution
Step 1
Journal Entry
The basic process accounting work is to make necessary journal entry into the required transaction. Journal entry has two parts debit and credit. Debit all expenses related transaction and credit all income related transaction as well.
T-Account
The purpose of preparing the T-Account is to find out the ending balance of each account which was used for making the trail balance of the firm as well.
Trial Balance
After making the T-Account next step to prepare the trial balance which is needed for prepare the income and balance sheet of the company as well.
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