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Question;P1-3AOn June 1, Tamara started Crazy Creations Co., a company that provides craft opportunities, byinvesting $12,000 cash in the business. Following are the assets and liabilities of the companyat June 30 and the revenues and expenses for the month of June.CashAccountsReceivableSuppliesEquipment$10,1503,000Notes PayableAccountsPayable9,0001,2002,00010,000Service RevenueAdvertisingExpenseRent ExpenseGasolineExpenseUtilities Expense$6,7005001,600200150Tamara made no additoinal investment in June but withdrew $1,300 in cash for personal useduring the month.(a) Prepare an income statement and owner?s equity statement for th emonth of June and abalance sheet at June 30th, 2014.(b) Prepare an income statement and owner?s equity statement for June assuming thefollowing data are not included above: (1) $900 of services were performed and billedbut not collected at June 30, and (2) $150 of gasoline expense was incurred but notpaid.P1-4ADebra Menge started her own consulting firm, Menge Consulting, on May 1, 2014. Thefollowing transactions occurred during the month of May:May 1st Debra invested $7000 cash in the businessMay 2nd Paid $900 for office rent for the monthMay 3rd Purchased $600 of supplies on the accountMay 5th Paid $125 to advertise in the County NewsMay 9th Received $4000 cash for services performedMay 12th Withdrew $1000 cash for personal useMay 15th Performed $5400 of services on accountMay 17th Paid $2500 for employee salariesMay 20th Paid for the supplies purchased on account on May 3rdMay 23rd Received a cash payment of $4000 for services performed on account on May 15thMay 26th Borrowed $5000 from the bank on a note payableMay 29th Purchased equipment for $4200 on accountMay 30th Paid $275 in utilities(a) Show the effects of the previous transactions on the accounting equation using thefollowing format: hint total assets are $20,800Assets =DateCash +AccountsReceivable +Supplies+Liabilities +Equipment =NotesPayable+AccountsPayable+Owner?s EquityOwner?sCapital-Owner?sdrawings+Revenues -May12014SubTotalsTotals(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 $14,600P2-2Bridgette 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.ExpensesApril 1st Hired a secretary-receptionist at a salary of $700 per week payable monthlyApril 2nd Paid office rent for the month $1100April 3rd Purchased dental supplies on account from Smile Company $4000April 10th Performed dental services and billed insurance companies $5100April 11th Received $1000 cash advance from Heather Greene for an implantApril 20th Received $2100 cash for services performed from James ChangApril 30th Paid secretary-receptionist for the month $2800April 30th Paid $2400 on Smile Company for accounts payable dueBridgette 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. 301Owner?s Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729Rent Expense(a) Journalize the transactions(b) Post to the ledger accounts(c) Prepare a trial balance on April 30th, 2014P2-3ASanta Ana Services was formed on May 1, 2014. The following transactions took place duringthe 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 month3. Signed a 2-year rental agreement on a warehouse, paid $24,000 cash in advance for thefirst year4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 wasmade immediately, the remainder will be paid in 6 months5. 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 cash7. Purchased more office supplies for $1500 on account8. Total revenues earned were $20,000: $8000 cash and $12000 on account9. Paid $400 to suppliers for accounts payable due10. Received $3000 from customers in payment of accounts receivable11. Received utility bills in the amount of #350, to be paid next month12. 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#39174 | Written in 18-Jul-2015

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