Tom West is a land surveyor who operates a small surveying company, performing surveys for both residential and commercial clients. He has a staff of surveyors and engineers who are employed by the firm. For the year ending December 31, 2017, he reported these income and expenses. Using this information, construct an income statement to reflect his net income for 2017.
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- On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from his personal bank account to a new account to start a new business, $40,000. Paid rent on office for the month, $6,000. Purchased supplies on account, $3,200. Paid creditor on account, $1,750. Earned fees, receiving cash, $18,250. Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420. Paid office salaries, $5,000. Determined that the cost of supplies used was $1,400. Withdrew cash for personal use, $2,000. Instructions Journalize entries for transactions (1) through (9), using the following account titles: Cash; Supplies; Accounts Payable; Capital; Drawing; Fees revenues; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. (Explanations may be omitted). Prepare T accounts, using the account titles in (1). Post the journal…arrow_forwardOn August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month: Investment from owner in exchange for common stock, $30,000. Paid rent on office and equipment for the month, $3,250. Purchased supplies on account, $2,150. Paid creditor on account, $875. Earned sales commissions, receiving cash, $14,440. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650. Paid office salaries, $3,000. Determined that the cost of supplies used was $1,300. Paid Cash Dividends, $2,500. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Common Stock; Dividends; Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing…arrow_forward2. Jasper is a lawyer who requires that his clients pay him in advance of legal services being rendered. Jasper routinely credits Legal Service Revenue when his clients pay him in advance. During the month of June 2015, Jasper collected P288,000 in advance fees and completed 75% of the work related to these fees. At what amount should the Legal Service Revenue be presented in the June 2014 income statement of Jasper?arrow_forward
- On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $18,000. Paid rent on office and equipment for the month, $3,370. Purchased supplies on account, $990. Paid creditor on account, $370 Earned fees, receiving cash, $15,300. Paid automobile expenses (including rental charge) for month, $930, and miscellaneous expenses, $630. Paid office salaries, $1,960. Determined that the cost of supplies used was $550. Withdrew cash for personal use, $900\ 4. As a result of the January transactions (a-i), determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for January. 5. Determine the total increase or decrease in owner's equity for January.arrow_forwardFauzana owns a business that makes and sells pets During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. a. Clay for making the pets toys. b. Wages of sales staff c. Purchase of potters wheel for use in the business d. Installation costs for the potters wheel e. Wages of staff operating the potters wheel f. Redecoration of store room g. Payment of extra wages to own staff for fitting the alarm and cctv h. Payment of architect fees for designing the proposed new shop i. Purchase of new telephone system for the businessarrow_forwardOn January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $40,000. Paid rent on office and equipment for the month, $6,000. Purchased supplies on account, $3,200. Paid creditor on account, $1,750. Earned fees, receiving cash, $18,250. Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420. Paid office salaries, $5,000. Determined that the cost of supplies used was $1,400. Withdrew cash for personal use, $2,000. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Sharon Matthews, Capital; Sharon Matthews, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted. Prepare T…arrow_forward
- Ray Agustin, the owner of a massage spa, has the following account balances as of January 1, 2019 as well as transactions and expenses for January. Salaries payable – P12,300 Agustin, Capital – P127,300 Investments – P292,294 Supplies expense – P3,750 Building – P325,250 Transportation – P7,200 Service Income – P53,676 Utilities Expense – P4,300 Equipment – P72,500 Office Supplies – P61,300 Taxes payable – P10,210 Licenses – P7,100 Withdrawals – P17,000 Accounts payable – P9,320 Cash – P6,700 What is the total amount of Ray’s total assets? How much is Ray’s capital for February 1, 2019? What is the total amount of Vince’s expenses? How much is the revenue generated by Ray?arrow_forwardOn January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $20,000. Paid rent on office and equipment for the month, $3,700. Purchased supplies on account, $1,090. Paid creditor on account, $400. Earned fees, receiving cash, $16,800. Paid automobile expenses (including rental charge) for month, $1,020, and miscellaneous expenses, $690. Paid office salaries, $2,150. Determined that the cost of supplies used was $600. Withdrew cash for personal use, $990. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances (when required), after all posting is complete, for all accounts having two or more debits or credits. 3. Prepare an unadjusted trial balance…arrow_forwardAmara is a sole proprietor who operates her business using the cash method of accounting and a calendar year. Based on the following list, how much income will be reported on her 2023 Schedule C? $10,000 check received January 4, 2024, for a job completed December 20, 2021. $15,000 check received December 29, 2023, for a job completed December 28, 2022, deposited January 5, 2024. $9,500 balance due for work that Amara performed in June 2023. Amara took her client to small claims court in December 2023, but did not receive any satisfaction. 1) $9.500 2) $15,000 3) $19,500 4) $25,000arrow_forward
- Conner ** Scheer, Attorneys at Law, provide a wide range of legal services for their clients. They employ several paralegal and administrative support staff in order to provide high-quality legal services at competitive prices. For the year ending December 31, 2017, the firm reported these income and expenses. Using this information, construct an income statement to reflect the firm’s net income for 2017.arrow_forwardMike purchased furniture for $8,400 and received an invoice dated February 5, 2017, with terms 2.5/10, n/30. He made a partial payment of $3,600 on February 10, 2017, and the balance on February 20, 2017. What was the balance?arrow_forwardOn August 1, 2019, Rafael Masey established Planet Realty, which completed the following transactions during the month: Rafael Masey transferred cash from a personal bank account to an account to be used for the business, $17,500. Purchased supplies on account, $2,300. Earned fees, receiving cash, $13,300. Paid rent on office and equipment for the month, $3,000. Paid creditor on account, $1,150. Withdrew cash for personal use, $1,800. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400. Paid office salaries, $2,800. Determined that the cost of supplies used was $1,050. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Rafael Masey, Capital; Rafael Masey, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Journal entry explanations may be omitted. Prepare T…arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College