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Accounting Equation, Financial Statements, Journal Entries

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Accounting Equation, Financial Statements, Journal Entries;Ramsey Corporation reported the following ac counts and balances in its financial statements;Cash $35,000;Inventory $10,200;Equipment $19,500;Accounts Payable $16,350;Contributed Capital $30,000;Retained Earnings $18,350;Arrange the accounts and balances into the accounting equating using the following equation and then answer the following questions.;Assets=liabilities + owner?s equity;1. What is the total amount of assets?;2. What is the total amount of liabilities?;3. What is the total amount of owner?s equity?;2. After six months of operations, Right Way Lumber had the following revenues and expense balances;Supplies expense 11,000;Service revenue 62,090;Utilities expense 6,200;Rent expense 14,700;Wages expense 13, 330.;Prepare an income statement in its proper format ending on june 30, 2009.;3. Jim Smith had trouble finding a job, so he decided to start his own sole proprietyship by the name of Designers Inc. Jim is a web site designer, and here are the results as of the end of the first year of his businesss;Accountypayabe $12,100;Cash 19,150;Service revenue 20,000;Contributed capital 21,000;Wage expense 4,100;Inventory 4,445;Rent expense 5,000;Equipment 16,325;Supplies 4,080;Retained earnings 6,820;4. Utopia Dance Clubs, Inc., rented an old warehouse for its newest club on October 1, 2010. To receive a discount, Utopia paid $ 11,700 for 18 months of rent in advance. Assume no additional rent is paid in 2011 and 2012 and answer the following questions;a. How much rent expense will be recognized for the year ended December 31, 2010;b. What will be the balance in the prepaid rent account at December 31, 2010?;c. How much rent expense will be recognized for the year ended December 31, 2011?;d. What will be the balance in the prepaid rent account of December 31, 2011?;e. How much rent expense will be recognized for the year ended December 31, 2012?;f. What will be the balance in the prepaid rent account at December 31,2012?

 

Paper#78326 | Written in 18-Jul-2015

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