Comprehensive Exercise7. N.A. James, a public accountant, decided to begin a business of his own onOctober 1, 20-. At that time, he invested in the business a bank balance of$5000 and an automobile worth $18 000. The accounts required are inyour Workbook.A. Work out the changes for the above transaction. Rememberto include the opening capital. Record these in the T-accountsprovided in your Workbook.B. For each of the transactions listed below, work out the changesfor the transaction and record these changes in the T-accounts.N.A. JAMESCHART OF ACCOUNTS101110 A/R- Jenkins and Co.120 Office Supplies125 Office EquipmentBank302 N.A. James, Drawings401 Fees Earned505 Advertising Expense510 Car Expense515 Donations Expense520 Miscellaneous Expense525 Rent Expense130 Automobile201 A/P- Office Equippers210 Bank Loan301N.A. James, CapitalTRANSACTIONS1. Purchased $300 of office supplies for cash. Issued a cheque in pay-ment. (For now, when office supplies are purchased, debit OfficeSupplies instead of an expense account. You will learn more abouthandling supplies in Chapter 8.) 2. Issued a cheque for $50 for an advertisement in a local newspaper.3. Received a bill from Office Equippers for the purchase of a computerat a total cost of $1100 on account.4. Mr. James was hired by a client, Jenkins and Co. At the conclusionof the work, Mr. James charged Jenkins and Co. $900 and issued abill for this service performed on account.5. B. Masters, a client, paid $100 in cash for a bookkeeping service.W. Shields, another client, paid $75 in cash for having her tax returnprepared. The total of $175 was deposited in the bank.6. A cheque for $100 was sent as a donation to the Canadian RedCross.7. A cheque for $300 was received from Jenkins and Co. on account.8. A cheque for $500 was issued to Office Equippers in partial pay-ment of the balance of its account.9. Paid Louis's Service Station $120 for gasoline and repairs to thebusiness automobile. A cheque was issued right away.10. Performed an accounting service for T. Wu and received $200 cashin full payment. The owner, N.A. James, did not deposit this moneyin the bank, but kept it for his personal use.11. Issued a cheque for $750 in payment of the rent for the month ofOctober.12. Purchased $120 of office supplies from Home & Office. The pur-chase was paid for by cheque.13. Issued a cheque for $50 for an advertisement in a local newspaper.14. Sold services for $600 to Jenkins and Co. for accounting services.Jenkins and Co. had 30 days to pay this bill.15. Issued a cheque for $70 for postage stamps. (Note: Stamps are notconsidered to be supplies.)16. Issued a cheque for $1500 to the owner for his personal use.17. Borrowed $5000 from the bank, repayable on demand.C. Balance the ledger by means of a trial balance.D. Prepare an income statement for the period, which is the month ofOctober 20-.E. Prepare a balance sheet with an expanded equity section. Usethe one shown in Figure 5.8 on page 155 as your guide.

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Description: Comprehensive Exercise7. N.A. James, a public accountant, decided to begin a business of his own onOctober 1, 20-. At that time, he invested in the business a bank balance of$5000 and an automobile worth $18 000. The accounts required are inyour Wor

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A. Work out the changes for the above transaction. Remember to include the opening capital. Record these in the T-accounts provided in your Workbook. B. For each of the transactions listed below, work out the changes for the transaction and record these changes in the T-accounts.

A. Work out the changes for the above transaction. Remember to include the opening capital. Record these in the T-accounts provided in your Workbook. B. For each of the transactions listed below, work out the changes for the transaction and record these changes in the T-accounts.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.10E: Effects of transactions on Accounting equation On Time Delivery Service had the following selected...

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Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.
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Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
Transaction Analysis and Financial Statements Expert Consulting Services Inc. was organized on March 1 by two former college roommates. The corporation provides computer consulting services to small businesses. The following transactions occurred during the first month of operations: March 2: Received contributions of $20,000 from each of the two principal owners of the new business in exchange for shares of stock. March 7: Signed a two-year promissory note at the bank and received cash of $15,000. Interest, along with the $15,000, will be repaid at the end of the two years. March 12: Purchased $700 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. March 19: Billed a client $4,000 for services rendered by Expert in helping to install a new computer system. The client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days. March 20: Paid $1,300 bill from the local newspaper for advertising for the month of March. March 22: Received 25% of the amount billed to the client on March 19. March 26: Received cash of $2,800 for services provided in assisting a client in selecting software for its computer. March 29: Purchased a computer system for $8,000 in cash. March 30: Paid $3,300 of salaries and wages for March. March 31: Received and paid $1,400 in gas, electric, and water bills. Required Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the format in Exhibit 3-1. Identify each transaction with the date. Prepare an income statement for the month of March. Prepare a classified balance sheet at March 31. From reading the balance sheet you prepared in part (3), what events would you expect to take place in April? Explain your answer.
Make a Ledger in this problem Assume that on December 2, 2020. Mr. David Started DB Accounting Firm in Tagbina with the following assets as initial investments: PARTICULARS Cash 15,000 Computers 40,000 Furniture 50,000 Supplies 10,000 December 02 The business was registered with DTI, BIR, and Mayor’s permit spending P300, P500, and P1,200, respectively. 05 Acquired printer amounting to P10,000 for cash 15 Received electricity bill used by the business, P600. 15 Acquired computer chairs and tables on account, P10,000 payable within five days 20 Issued 3 months promissory note amounting to 10,000 to settle the obligation for acquiring computer chairs 21 Mr. David withdrew P1,000 for personal use. 23 Used supplies amounting to 8,000 26 Collected P50,000 for audit service to client 28 Billed P80,000 to the client for tax consultancy performed. 29 Transportation expense incurred and paid, P2,000 30 Provided 10% allowance for depreciation for the use of office equipment and…
Michael Anderson is starting his computer programming business and has deposited in initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected.
Required: post entries to the relevant accounts in the general ledger and balance the accounts: On 1/1/2023, Jassim started his commercial business with a capital of $3,735,000 distributed over the following assets: 1500,000 cash, 700,000 cars, 350,000 goods, 1,185,000 bank, If you know that the following operations took place during January 2023: 1. On 1/3 he bought a building for $950,000 by check, and the costs of registering it amounted to $5200 and the expenses of preparing it for use amounted to $43000, which I paid in cash. 2. On 9/1 he sold his goods on account to Mahmoud for $280,000. 3. On 1/10, he bought goods from Daoud for $324,000, he paid half of them in cash, and wrote the rest as a promissory note due after two months. He also paid the costs of transporting the purchased goods, amounting to $1,800. 4. On 1/12 he sold his goods to Al-Tafa'il stores for the amount of $198,000 in cash, of which $65,000 was deposited in the bank. 5. On 1/15, he sold the most valuable car…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. The Schedule is complete, however, I'm struggling with the journal entries. I attached images of the completed schedule to assist with the journal entries. 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). 1 Record the sale…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Cash Equipment Accum. deprec. Equipment Accounts Pay. Notes Pay. David Wallace, Capital Olena Dunn, Capital Danny Lin, Capital Account balance, December 31, 2020 $40,300 $191,000 $102,000 $8,300 $25,000 $44,000…