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1. Is a debit entry to an account: increases asset...




1. Is a debit entry to an account: increases assets, increases liabilities, increases stockholders equity, or both increases assets and increases stockholders equity? 2. Smith Software began with cash of $11,000.Smith then bought supplies for $4,200 on account. Separately, Smith paid $5,500 for a computer.Answer these questions: How much in in total assets does Smith have? How much in liabilities does Smith owe? 3. The following selected events were experienced by either Fact Finders Inc., a corporation, or Peter Flip, the major stockholder. The transactions a. Received $8,500 cash from customers on account. b. Flip used personal funds to purchase a flat screen tv for his home. c. Sold land and received cash of $71,000(the land was carried on the company's books at $71,000). d. Borrowed $56,000 from the bank. e. Made cash purchase of land for a building site, $93,000. f. Received $22,000 cash and issued stock to a stockholder. g. Paid $68,000 cash on accounts payable. h. Purchased equipment and signed a $104,000 promissory note in payment. i. Purchased merchandise inventory on account for $16,500. j. The business paid Flip a cash dividend of $7,000. State whether each event(transaction) (1) increased (2) decreased or (3) had no effect on the total assets of the business. Identify any specific asset affected. 4. Chris Evensen opened a medical practice specializing in surgery. During the first month of operation(May), the business, titled Chris Evensen, Professional Corporation (P.C.), experienced the following events: May 6 Evensen invested $39,000 in the business, which in turn issued its common stock to him. May 9 The business paid cash for land costing $26,000.Evensen plans to build an office building on the land. May 12 The business purchased medical supplies for $2,200 on account. May 15 Chris Evensen, P.C., officially opened for business. May 15-31 During the rest of the month, Evensen treated patients and earned service revenue of $7,800, receiving cash for half the revenue earned. May 15-31 The business paid cash expenses: employee salaries, $800; office rent: $900; utilities: $100. May 31 The business sold supplies to another physician for cost of $800. May 31 The business borrowed $13,000, signing a note payable to the bank. May 31 The business paid $1,100 on account. Analyze the effects of these events on the accounting equation of the medical practice of Chris Evensen, P.C. (Use parentheses or a minus sign for numbers to be subtracted. Enter transactions in the same order as they appear in the original list.) After completing the analysis, answer these questions about the business. a. How much are total assets? b. How much does the business expect to to collect from patients? c. How much does the business owe in total? d. How much of the business's assets does Evensen really own? e. How much net income or net loss did the business experience during its first month of operations? 5. The following account summarizes the financial position of Rodriguez Resources, Inc., on May 31, 2012: May 31, 2012 financial position: Assets = Liabilities + Stockholders Equity Accounts Accounts + Common + Retained Cash + Receivable + Supplies = Payable Stock Earnings + Land ______________________________________________________________ Bal Cash($1,200) Accounts Receivable($1,500) Supplies ($0) Land ($12,200) Accounts Payable ($7,800) Common Stock ($4,400) Retained Earnings ($2,750) Transactions During June 2012, Rodriguez Resources completed these transactions: a. The business received cash of $9,400 and issued common stock b. Performed services for customer and received cash of $6,000. c. Paid $4,500 on accounts payable. d. Purchased supplies on account $1,300. e. Collected cash from a customer on account, $300. f. Consulted on the design of a computer system and billed the customer for services rendered $2,500. g. Recorded the following expenses for the month (1) paid office rent-$800; (2) paid advertising $200. Declared and paid a cash dividend of $2,200. Requirements: 1. analyze the effects of the transactions on the accounting equation of Rodriguez Resources, Inc. 2. Prepare the income statement of Rodriguez Resources, Inc., for the month ended June 30, 2012. List expenses in decreasing order by amount. 3. Prepare the entity's statement of retained earnings the month ended June 30, 2012. 4. Prepare a balance sheet of Rodriguez Resources Inc., at June 30, 2012. (Use parentheses or a minus sign when decreasing accounts.)


Paper#11233 | Written in 18-Jul-2015

Price : $25