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One February 1, A&D opened for business. Prepare an income statement for the month of February and a balance sheet as of February 28, 2021, taking account of the following transactions and adding new account titles as necessary. Do not forget to include in your balance sheet those transactions that occurred in January. (Note: Journal entries are required in part 2. In order to prepare the balance sheet, you need to compute the beginning and ending debit balance or credit balance of each account for assets, liabilities, and shareholders' equity. However, to save your time, you do not have to present them in the T- account format. An example is given below:) Cash Beginning debit balance 103,000 Ending debit balance = 103000+5200+1200-7000-6000+800 = 97,200 %3D 1. (a) During the month of February, A&D perform repair service of $8,200 for its customers. Customers paid A&D $5,200 in cash for these services and charge $3,000 to accounts that A&D allows them to open. (b) By the end of February, customers have paid $1,200 of the amounts they have charged and $1,800 in charges are outstanding. 2. A&D paid Adam and David each a salary of $3,500 for the month of February. 3. A&D paid the balance of $6,000 it owes to X Corp. 4. Z LLC paid off the $800 note it gave to A&D.

One February 1, A&D opened for business. Prepare an income statement for the month of February and a balance sheet as of February 28, 2021, taking account of the following transactions and adding new account titles as necessary. Do not forget to include in your balance sheet those transactions that occurred in January. (Note: Journal entries are required in part 2. In order to prepare the balance sheet, you need to compute the beginning and ending debit balance or credit balance of each account for assets, liabilities, and shareholders' equity. However, to save your time, you do not have to present them in the T- account format. An example is given below:) Cash Beginning debit balance 103,000 Ending debit balance = 103000+5200+1200-7000-6000+800 = 97,200 %3D 1. (a) During the month of February, A&D perform repair service of $8,200 for its customers. Customers paid A&D $5,200 in cash for these services and charge $3,000 to accounts that A&D allows them to open. (b) By the end of February, customers have paid $1,200 of the amounts they have charged and $1,800 in charges are outstanding. 2. A&D paid Adam and David each a salary of $3,500 for the month of February. 3. A&D paid the balance of $6,000 it owes to X Corp. 4. Z LLC paid off the $800 note it gave to A&D.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter3: The General Journal And The General Ledger
Section: Chapter Questions
Problem 5PA: Following is the chart of accounts of Sanchez Realty Company: Sanchez completed the following...
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One February 1, A&D opened for business. Prepare an income statement for the month of February and a balance sheet as of February 28, 2021, taking account of the following transactions and adding new account titles as necessary. Do not forget to include in your balance sheet those transactions that occurred in January. (Note: Journal entries are required in part 2. In order to prepare the balance sheet, you need to compute the beginning and ending debit balance or credit balance of each account for assets, liabilities, and shareholders' equity. However, to save your time, you do not have to present them in the T- account format. An example is given below:) Cash Beginning debit balance 103,000 Ending debit balance = 103000+5200+1200-7000-6000+800 = 97,200 %3D 1. (a) During the month of February, A&D perform repair service of $8,200 for its customers. Customers paid A&D $5,200 in cash for these services and charge $3,000 to accounts that A&D allows them to open. (b) By the end of February, customers have paid $1,200 of the amounts they have charged and $1,800 in charges are outstanding. 2. A&D paid Adam and David each a salary of $3,500 for the month of February. 3. A&D paid the balance of $6,000 it owes to X Corp. 4. Z LLC paid off the $800 note it gave to A&D.
Transcribed Image Text:One February 1, A&D opened for business. Prepare an income statement for the month of February and a balance sheet as of February 28, 2021, taking account of the following transactions and adding new account titles as necessary. Do not forget to include in your balance sheet those transactions that occurred in January. (Note: Journal entries are required in part 2. In order to prepare the balance sheet, you need to compute the beginning and ending debit balance or credit balance of each account for assets, liabilities, and shareholders' equity. However, to save your time, you do not have to present them in the T- account format. An example is given below:) Cash Beginning debit balance 103,000 Ending debit balance = 103000+5200+1200-7000-6000+800 = 97,200 %3D 1. (a) During the month of February, A&D perform repair service of $8,200 for its customers. Customers paid A&D $5,200 in cash for these services and charge $3,000 to accounts that A&D allows them to open. (b) By the end of February, customers have paid $1,200 of the amounts they have charged and $1,800 in charges are outstanding. 2. A&D paid Adam and David each a salary of $3,500 for the month of February. 3. A&D paid the balance of $6,000 it owes to X Corp. 4. Z LLC paid off the $800 note it gave to A&D.
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