At the end of the first month of operations for Juan's Service Company, the business had thefollowing accounts: Cash, Php19,000; Prepaid Rent, Php500; Equipment, Php5,000 andAccounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 ofRevenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses.Calculate the net income to be reported by the company for this first month. Prepare asingle-step income statement

A single-step income statement is the income statement that shows the sum of total revenue and total…

Answered: At the end of the first month of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 11PA: The following information is provided for the first month of operations for Legal Services Inc.: A....

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A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?
The following information is provided for the first month of operations for Legal Services Inc.: A. The business was started by selling $100,000 worth of common stock. B. Six months rent was paid in advance, $4,500. C. Provided services in the amount of $1,000. The customer will pay at a later date. D. An office worker was hired. The worker will be paid $275 per week. E. Received $500 in payment from the customer in C. F. Purchased $250 worth of supplies on credit. G. Received the electricity bill. We will pay the $110 in thirty days. H. Paid the worker hired in D for one weeks work. I. Received $100 from a customer for services we will provide next week. J. Dividends in the amount of $1,500 were distributed. Prepare the necessary journal entries to record these transactions. If an entry is not required for any of these transactions, state this and explain why.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange. B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed. C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid. E. The electric bill in C is paid.
On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501. e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307. i. Received and paid the heating bill, 248, Ck. No. 504. j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
In July of this year, M. Wallace established a business called Wallace Realty. The account headings are presented below. Transactions completed during the month follow. a. Wallace deposited 24,000 in a bank account in the name of the business. b. Paid the office rent for the current month, 650, Ck. No. 1000. c. Bought office supplies for cash, 375, Ck. No. 1001. d. Bought office equipment on account from Dellos Computers, 6,300. e. Received a bill from the City Crier for advertising, 455. f. Sold services for cash, 3,944. g. Paid on account to Dellos Computers, 1,500, Ck. No. 1002. h. Received and paid the bill for utilities, 340, Ck. No. 1003. i. Paid on account to the City Crier, 455, Ck. No. 1004. j. Paid truck expenses, 435, Ck. No. 1005. k. Wallace withdrew cash for personal use, 1,500, Ck. No. 1006. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
From the following transactions for Casio Company, find the required balances for the month ended November 2020. The chart of accounts includes: 2 - Casio invested Php290,000 cash and Php150,000 worth of office equipment 2 - Paid rent for three months in advance, Php30,000. 4 - Purchased office equipment on account, Php50,000. 6 - Bought office supplies for cash, Php4,000. 8 - Collected Php95,000 for services rendered. 14 - Provided Php65,000 worth of services to clients who will not pay until next month. 16 - Paid salaries, Php30,000. 18 - Advertising bill for Php7,000 was received but will not be paid until next month. Compute the amount of ACCOUNTS RECEIVABLE based on foregoing transactions. 60,000 70,000 67,000 65,000
From the following transactions for BlackJade Company, find the required balances for the month ended November 2020. The chart of accounts includes: 2 - BlackJade invested Php290,000 cash and Php150,000 worth of office equipment 2 - Paid rent for three months in advance, Php30,000. 4 - Purchased office equipment on account, Php50,000. 6 - Bought office supplies for cash, Php4,000. 8 - Collected Php95,000 for services rendered. 14 - Provided Php65,000 worth of services to clients who will not pay until next month. 16 - Paid salaries, Php30,000. 18 - Advertising bill for Php7,000 was received but will not be paid until next month. Compute the amount of CASH based on foregoing transactions. 288,000 351,000 281,000 321,000
Here is another sample of business transactions for Kuya Berting Auto Shop for February 2020. The business : Cash, Php 30,000; Prepaid Rent, Php5,000; Equipment, Php5,000, Supplies Php 3,00.00 and Accounts Payable Php7,000. By the end of the month, Berting's had earned Php50, 000 of Service Income, Php 1,500 of Utility Expenses and Php 6,500 of Salaries Expense and P 1,500 for Rent Expense. Prepare the Statement of Comprehensive Income.
During October, a sari-sari store had the following transactions involving revenue and expenses. What is the net income? Paid Php1,200 for rent Provided services for Php2,750 in cash Paid Php250 for telephone service Provided services for Php1,900 on credit Paid salaries of Php1,675 to employees Paid Php350 for office cleaning service
At the end of the first month of operations for FDNACCT, the business had earned P140,500 of revenues and incurred P71,500 of expenses. It also showed the following: Liabilities: P25,000 Assets: P118,000 How much is the owner’s initial investment?
In its first year of operations, Maria Corp.earned 48,100 in service revenue.Of that amount, 8,200 was on account and the remainder, 39, 900, was collected in cash from customers. The company incurred various expenses totalling 32,300, of which 28,800 was paid in cash. At the year end, 3,500 was still owing on account. In addition, Maria prepaid 2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. maria expects to owe 3000 of income tax when it files its corporate income tax return after year end.

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