acct 201 test 1

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On October 1, Keisha King organized Real Answers, a new consulting firm; on October 3, the owner contributed $84,000 cash. On October 31, the company’s records show the following items and amounts. Cash $ 11,360 Cash dividends $ 2,000 Accounts receivable 14,000 Consulting fees earned 14,000 Office supplies 3,250 Rent expense 3,550 Land 46,000 Salaries expense 7,000 Office equipment 18,000 Telephone expense 760 Accounts payable 8,500 Miscellaneous expenses 580 Common stock 84,000 Also assume the following: a. The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. b. The company’s $18,000…show more content…
On August 31, the company’s records show the following accounts and amounts for the month of August. Use this information to prepare an August income statement for the business. Cash $ 25,360 Dividends $ 6,000 Accounts receivable 22,360 Consulting fees earned 27,000 Office supplies 5,250 Rent expense 9,550 Land 44,000 Salaries expense 5,600 Office equipment 20,000 Telephone expense 860 Accounts payable 10,500 Miscellaneous expense 520 Common stock 102,000 HELP TODAY Income Statement For Month Ended August 31 Revenues: Consulting fees earned $27,000 0 Total Revenues $27,000 Expenses: Rent expense $9,550 Salaries expense 5,600 Telephone expense 860 Miscellaneous expenses 520 0 0 Total expenses 16,530 Net income $10,470 HELP TODAY Statement of Retained Earnings For Month Ended August 31 Retained earnings, July 31 $0 Add: Net income 10,470 10,470 Less: Dividends (6,000) Retained earnings, August 31 $4,470 HELP TODAY Balance Sheet As of August 31 Assets: Liabilities: Cash $25,360 Accounts payable $10,500 Accounts receivable 22,360 0 Office supplies 5,250 Equity: Land 44,000 Common stock 102,000 Office equipment 20,000 Retained earnings 4,470 Total assets $116,970 Total liabilities and equity $116,970 Identify the financial statement(s) where each of the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet.

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