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P1-3A On June 1, Tamara started Crazy Creations Co., a company that provides craft opportunities

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Question;Homework;P1-3A;On June 1, Tamara started Crazy Creations;Co., a company that provides craft opportunities, by investing $12,000 cash in;the business. Following are the assets;and liabilities of the company at June 30 and the revenues and expenses for the;month of June.;Cash;$10,150;Service Revenue;$6,700;Accounts Receivable;3,000;Advertising Expense;500;Supplies;2,000;Rent Expense;1,600;Equipment;10,000;Gasoline Expense;200;Notes Payable;9,000;Utilities Expense;150;Accounts Payable;1,200;Tamara made no additoinal investment in;June but withdrew $1,300 in cash for personal use during the month.;(a);Prepare an income statement and;owner?s equity statement for th emonth of June and a balance sheet at June 30th;2014.;(b);Prepare an income statement and;owner?s equity statement for June assuming the following data are not included;above: (1) $900 of services were performed and billed but not collected at June;30, and (2) $150 of gasoline expense was incurred but not paid.;P1-4A;Debra Menge started her own consulting;firm, Menge Consulting, on May 1, 2014.;The following transactions occurred during the month of May;May 1st Debra invested $7000 cash in the;business;May 2nd Paid $900 for office;rent for the month;May 3rd Purchased $600 of;supplies on the account;May 5th Paid $125 to advertise;in the County News;May 9th Received $4000 cash for;services performed;May 12th Withdrew $1000 cash for;personal use;May 15th Performed $5400 of;services on account;May 17th Paid $2500 for employee;salaries;May 20th Paid for the supplies;purchased on account on May 3rd;May 23rd Received a cash payment;of $4000 for services performed on account on May 15th;May 26th Borrowed $5000 from the;bank on a note payable;May 29th Purchased equipment for;$4200 on account;May 30th Paid $275 in utilities;(a);Show the effects of the;previous transactions on the accounting equation using the following format;hint total assets are $20,800;Assets =;Liabilities +;Owner?s Equity;Date;Cash +;Accounts Receivable +;Supplies +;Equipment =;Notes Payable +;Accounts Payable +;Owner?s Capital -;Owner?s drawings +;Revenues -;Expenses;May 1 2014;Sub Totals;Totals;(b);Prepare and income statement;for the month of May Hint: net income is;$5,600;(c);Prepare a balance sheet at May;31, 2014 Hint: Cash is $14,600;P2-2;Bridgette Keyes is a licensed dentist. During the first month of the operation of;her business, the following events and transactions occurred.;April 1st Invested $20,000 cash;in her business.;April 1st Hired a;secretary-receptionist at a salary of $700 per week payable monthly;April 2nd Paid office rent for;the month $1100;April 3rd Purchased dental;supplies on account from Smile Company $4000;April 10th Performed dental;services and billed insurance companies $5100;April 11th Received $1000 cash;advance from Heather Greene for an implant;April 20th Received $2100 cash;for services performed from James Chang;April 30th Paid;secretary-receptionist for the month $2800;April 30th Paid $2400 on Smile;Company for accounts payable due;Bridgette uses the following chart of;accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201;Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner?s Capital;No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent;Expense;(a);Journalize the transactions;(b);Post to the ledger accounts;(c);Prepare a trial balance on;April 30th, 2014;P2-3A;Santa Ana Services was formed on May 1;2014. The following transactions took;place during the first month.;Transactions on May 1;1.;Don Humes invested $40,000 cash in the;company, as its sole owner.;2.;Hired two employees to work in;the warehouse. They will each be paid a;salary of $3050 per month;3.;Signed a 2-year rental;agreement on a warehouse, paid $24,000 cash in advance for the first year;4.;Purchased furniture and;equipment costing $30,000. A cash;payment of $10,000 was made immediately, the remainder will be paid in 6 months;5.;Paid $1800 cash for a one-year;insurance policy on the furniture and equipment.;Transactions during the remainder of the;month;6.;Purchased basic office supplies for $500 cash;7.;Purchased more office supplies;for $1500 on account;8.;Total revenues earned were;$20,000: $8000 cash and $12000 on account;9.;Paid $400 to suppliers for;accounts payable due;10.;Received $3000 from customers;in payment of accounts receivable;11.;Received utility bills in the;amount of #350, to be paid next month;12.;Paid the monthly salaries of;the two employees, totalling $6100;(a);Prepare journal entries to;recored each of the events listed. (omit;explanations);(b);Post the journal entries to;T-accounts;(c);Prepare a trial balance as of;May 31, 2014

 

Paper#37800 | Written in 18-Jul-2015

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