9. Eureka Services Ltd. is owned and operated by Vince Fry. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of servicing is done by another company at wholesale rates. The assets and the liabilities of the business on June 1, 2018, are as follows: Cash, $8,600; Accounts Receivable, $9,500; Supplies, $1,875; Land, $15,000; Accounts Payable, $4,100. Business transactions during June are summarized as follows: a. Paid rent for the month, $4,000. b. Charged customers for service on account, $8,150. c. Paid creditors on account, $2,680. d. Purchased supplies on account, $1,500. e. Received cash from cash customers for services rendered, $17,600. f. Received cash in advance from customers on account for services to be rendered, $8,450. g. Received monthly invoice for maintenance expense for June (to be paid on July 10), $7,400. h. Paid the following: wages expense, $2,800; truck expense, $825; utilities expense, $710; miscellaneous expense, $390. Determined that the cost of supplies on hand was $1,600; therefore, the cost of supplies used during the month was $1,775. j. Withdrew $3,500 for personal use. i. Required: Prepare an income statement for June 30.

9. Eureka Services Ltd. is owned and operated by Vince Fry. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of servicing is done by another company at wholesale rates. The assets and the liabilities of the business on June 1, 2018, are as follows: Cash, $8,600; Accounts Receivable, $9,500; Supplies, $1,875; Land, $15,000; Accounts Payable, $4,100. Business transactions during June are summarized as follows: a. Paid rent for the month, $4,000. b. Charged customers for service on account, $8,150. c. Paid creditors on account, $2,680. d. Purchased supplies on account, $1,500. e. Received cash from cash customers for services rendered, $17,600. f. Received cash in advance from customers on account for services to be rendered, $8,450. g. Received monthly invoice for maintenance expense for June (to be paid on July 10), $7,400. h. Paid the following: wages expense, $2,800; truck expense, $825; utilities expense, $710; miscellaneous expense, $390. Determined that the cost of supplies on hand was $1,600; therefore, the cost of supplies used during the month was $1,775. j. Withdrew $3,500 for personal use. i. Required: Prepare an income statement for June 30.

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Description: 9. Eureka Services Ltd. is owned and operated by Vince Fry. A building and equipment arecurrently being rented, pending expansion to new facilities. The actual work of servicing isdone by another company at wholesale rates. The assets and the liabil

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...

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Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
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