Balance Sheet Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $20,000. Bought office supplies for $4,800: $2,000 in cash and $2,800 on account. Paid one-year insurance premium, $1,100. Earned revenues totaling $3,100: $1,200 in cash and $1,900 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,550. Paid office rent for the month, $600. Withdrew cash for personal use, $150.
Balance Sheet Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $20,000. Bought office supplies for $4,800: $2,000 in cash and $2,800 on account. Paid one-year insurance premium, $1,100. Earned revenues totaling $3,100: $1,200 in cash and $1,900 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,550. Paid office rent for the month, $600. Withdrew cash for personal use, $150.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter2: Analyzing Transactions: The Accounting Equation
Section: Chapter Questions
Problem 4SEB: EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first...
Related questions
Topic Video
Question
Balance Sheet
Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.
- Invested cash in business, $20,000.
- Bought office supplies for $4,800: $2,000 in cash and $2,800 on account.
- Paid one-year insurance premium, $1,100.
- Earned revenues totaling $3,100: $1,200 in cash and $1,900 on account.
- Paid cash on account to the company that supplied the office supplies in transaction (b), $2,550.
- Paid office rent for the month, $600.
- Withdrew cash for personal use, $150.
The effect of each transaction is shown in the individual accounts of the
Assets |
= | Liabilities | + | Owner's Equity | |||||||||||||||
(Items Owned) |
(Amts. Owed) | (Owner's Investment) |
(Earnings) |
||||||||||||||||
Cash | + | Accounts Receivable | + | Office Supplies | + | Prepaid Insurance | = | Accounts Payable | + | J. Pembroke, Capital | - | J. Pembroke, Drawing | + | Revenues | - | Expenses | Description | ||
a. | 20,000 | 20,000 | |||||||||||||||||
b. | (2,000) | 4,800 | 2,800 | ||||||||||||||||
c. | (1,100) | 1,100 | |||||||||||||||||
d. | 1,200 | 1,900 | 3,100 | Service fees | |||||||||||||||
e. | (2,550) | (2,550) | |||||||||||||||||
f. | (600) | 600 | Rent expense | ||||||||||||||||
g. | (150) | 150 | |||||||||||||||||
Bal. | 14,800 | + | 1,900 | + | 4,800 | + | 1,100 | = | 250 | + | 20,000 | - | 150 | + | 3,100 | - | 600 |
The income statement and statement of owner's equity for Jay Pembroke for the month ended April 30, 20-- are shown.
Jay Pembroke Income Statement For Month Ended April 30, 20-- |
|
Revenues: | |
Service fees | $3,100 |
Expenses: | |
Rent expense | 600 |
Net income | $2,500 |
Jay Pembroke Statement of Owner’s Equity For Month Ended April 30, 20-- |
||
Jay Pembroke, capital, April 1, 20-- | $ - | |
Investment during April | 20,000 | |
Total investment | $20,000 | |
Net income for April | $2,500 | |
Less withdrawals for April | 150 | |
Increase in capital | 2,350 | |
Jay Pembroke, capital, April 30, 20-- | $22,350 |
Required:
Use the information to prepare a balance sheet for Jay Pembroke as of April 30, 20--.
Jay Pembroke Balance Sheet April 30, 20-- |
|||
Assets | Liabilities | ||
|
$fill in the blank 2 |
|
$fill in the blank 4 |
|
fill in the blank 6 | ||
|
fill in the blank 8 | Owner's Equity | |
|
fill in the blank 10 |
|
fill in the blank 12 |
Total assets | $fill in the blank 13 | Total liabilities & owner's equity | $fill in the blank 14 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,