During May,the Friendly Resort had income of $10,000 and expenses of $4000.The owner withdrew $800 cash from the business during the month.If Owner's Equity on 31 May was $18,000,Onwer's Equity on 1 May must have been:
Q: QUESTION 2 The following information was taken from the books of DCW Ltd: 31/12/20x3 Inventory…
A: Hi student Since there are multiple questions, we will answer only first question. Since first…
Q: ary 1, 2019, an entity acquired 30% of the voting share capital of another entity for 2,000,000,…
A: Answer 1. Investment on January 1,2019 2000000 Less: Share in dividends (500000*30%) 150000…
Q: Calculate Jamie's net pay
A: Vacation pay means the amount that is paid for the employee's vacation. In this, the employee gets…
Q: Trovato Corporation is considering a project that would require an investment of $68,000. No other…
A: Profitability index=Present value of the cash inflowsInitial investment
Q: Fill in the blanks in the schedule below for two separate investment centers A and B. Investment…
A: INTRODUCTION: The investment turnover analysis is a measure used to assess how effectively a firm…
Q: Valuation is applied to this specific object so that a proper computation of rental charges can be…
A: It's true valuation is made of some object like building, office, machines or land etc. All these…
Q: Lucky Company's direct labor information for the month of February is as follows: Actual direct…
A: Introduction: In standard costing, direct labor efficiency variance is used to know whether labor…
Q: cipality is attempting to invest the t proposal. They would like to inv with a major meat packing…
A: The annual interest rate refers to the concept of determining the expected return on an investment…
Q: 5. Which of the following transactions will cause an increase in assets and an increase in…
A: Assets and liabilities increasing at the same time indicates that there is a purchase of asset on…
Q: Identify the major payroll tax forms and describe the purpose of each.
A: Payroll tax refers to the percentage which is withheld from the pay or salaries of the employee…
Q: 2. Advanced Learning Institute, an educational institution, provided the following data for the…
A: Introduction: Income tax payable is a type of account in the current liabilities section of a…
Q: Direct Labor Costs August, Carrothers Company accumulated 790 hours of direct labor costs on Job 50…
A: Total direct labor cost: Job 50 (790 hours * $ 15) $ 11,850 Job 56 (500 hours * $ 13) $ 6,500…
Q: A company produces 500,000 units of a product per year and are being sold for P4,000,000. It incurs…
A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…
Q: Discuss the importance of management accounting, and how it differs from what financial accounting…
A: INTRODUCTION: Management accounting is a vital field of accounting. It is a key decision-making tool…
Q: QUESTION 36 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It…
A: Total cash payment for Inventory shall be calculated on the basis 70% of total payable shall be…
Q: Aging of Accounts Receivable The Miller Company's accounts receivable reveal the following balances…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: Identify each of the following transactions as an operating activity (O), an investing activity (I),…
A: Cash Flow Statement :— It is a Financial Statement that provides information regarding change in…
Q: Juan borrows a total of $125,000 to pay for medical school. He borrows part of the money from the…
A: Working notes Total interest for 3 years = $17673 So interest for one year is $17673/3= $5891 Let's…
Q: Rivers Company purchases merchandise on account. In general, Rivers pays 50% in the month of…
A: Cash disbursements are used in the cash budget. It indicates the amount to be collected and paid in…
Q: Towns a machine that was purchased three years ago that cost $180,000 and accumulated depreciation…
A: Here discuss about the details of the Section 1231 of federal taxes which are applied for the gains…
Q: Pioneer College, a private educational institution, has presented the following data for the year:…
A: Here discuss about the income tax payable for education institution which are treated as corporate…
Q: Ted's Machine Shop purchased a computer to use in tuning engines. To finance the purchase, the…
A: Principal amount P = $18,500 Interest rate r = 4% Semi annual interest s = 4%/2 = 2% Principal…
Q: QUESTION 1 Dee and Co. Limited makes and sells a particular product. At the moment, the company…
A: Inventory valuation can be recorded in the books of accounts by two methods i.e variable costing…
Q: An investor buys a five-year, 7.5% annual coupon bond priced to yield 5%. The investor plans to sell…
A: Purchase Price=Future Value of reinvested coupons+Present Value of remaining coupon and Face Value…
Q: Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000 They…
A: Partnership is an agreement between two or more partners for forming a business and sharing the…
Q: 15 17 18 24 25 31 ansactions. Returned defective merchandise to Puregold amounting to $4,500. Paid…
A: Journal entries are the recording of each and every transaction taking place in the books of…
Q: Current Attempt in Progress The cost of goods sold computations for Flint Company and Pina Colada…
A: INTRODUCTION: The investment turnover ratio informs investors about how well a firm uses its…
Q: Government contracts account for the majority of Alice's business, which she owns as a contracting…
A: Bribe is a type of crime committed in terms of gaining illegal income through various ways. For eg.…
Q: The Coca-Cola Company hardly needs an introduction. A line taken from the cover of a recent annual…
A: Every year, public companies are required to present an annual report to shareholders that summarize…
Q: Sheldon Company manufactures only one product and uses a standard cost system. During the past…
A: Formula Direct labor flexible budget variance = Direct labor rate variance + Direct labor…
Q: Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc.…
A: An income statement is a financial statement that shows the income and expenses of a company. It…
Q: a. Determine the balance on the job cost sheets for Jobs 50 and 56 at the end of August. Job 50 Job…
A: Job Order Costing Job costing involves the accumulation of the costs of materials, labor, and…
Q: 4. Start with the Wednesday balance sheet for The Friendly Bank shown below (page 322 in the text).…
A: In the context of the given questions, we are required to complete the table. Workings: 1)…
Q: An investor buys a five-year, 7.5% annual coupon bond priced to yield 5%. The investor plans to sell…
A: Purchase Price=Future Value of reinvested coupons+Present Value of remaining coupon and Face Value…
Q: 1. In financial statement analysis, what is the basic objective of observing trends in data and…
A: Financial statement analysis refers to the procedure of analyzing the financial statements of the…
Q: Sardi Inc. is considering whether to continue to make a component or to buy it from an outside…
A: Make or Buy Decision making When Machine hours/Other production capacity is limited, then machine…
Q: benefits of flexible budgeting on sustainability.
A: Flexible budget refers to the budget which adjusts to the activity levels of the business and this…
Q: hen I add the information from the attached to here, why I am not getting the net incom $341. Please…
A: Income Statement: It is the statement of incomes and expenses of the business which tells the net…
Q: Mabuhay Company prepared the following reconciliation of income per book with income per tax return…
A: Given, Book income before tax=750,000 Taxable temporary difference=100,000 Deductible temporary…
Q: Piechocki Corporation manufactures and sells a single product. The company uses units as the measure…
A: INTRODUCTION: Revenue is the amount of money received by a firm by selling items and/or delivering…
Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct…
A: Introduction: Overhead is computed by dividing overall indirect expenses (also known as overhead)…
Q: Josh Edwards was judged at fault in an automobile accident. Three others were awarded damages of…
A: INTRODUCTION: An insurance policy that defends an insured is referred to as a "liability insurance"…
Q: A. Would either Mendoza or Cope violate the Code of Ethics for Professional Accountants by offering…
A: This question belongs to the CPA Professional Ethics. The principles of CPA ethics can be summed up…
Q: A man's investment of P100,000 is expected to yield a regular income of P25,000 per year for 10…
A: Benefit Cost Ratio:— This Ratio shows the Relationship between Present Value of benefits &…
Q: Question 10 of 20: Select the best answer for the question The books of the Marvel Company showed…
A: Accounting equation has three important elements. These are assets, liabilities and equity. At the…
Q: Company has an employee, Sue Nami, who has an estimated net income of $104,000 in 2022. Sue will be…
A: Income Tax: It is the charge levied on the income of the individual or company by the govt. as per…
Q: It is the obligation of compulsory taxes on individuals or corporations by governments. Taxes are…
A: Tax Imposition: Nearly every nation on earth has some kind of taxation, which is defined as the…
Q: Derek and Meagan Jacoby recently graduated from State University, and Derek accepted a job in…
A: The money you make when you dispose of an asset is a recognized gain. When referring to the sum of…
Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…
A: Computation of Budgeted Sales Revenue:- Particulars Amount($) (a)Number…
Q: Deja Brew Company reported the following for the most recently completed fiscal year: Raw Materials…
A: INTRODUCTION: COGS referred Cost of goods sold refers to expenses directly associated with…
During May,the Friendly Resort had income of $10,000 and expenses of $4000.The owner withdrew $800 cash from the business during the month.If Owner's Equity on 31 May was $18,000,Onwer's Equity on 1 May must have been:
Step by step
Solved in 3 steps
- 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.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.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 (Rent Expense). 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 (Catering Income). g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307 (Catering Income). i. Received and paid the heating bill, 248, Ck. No. 504 (Utilities Expense). j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506 (Salary Expense). Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
- P. Schwartz, Attorney at Law, opened his office on October 1. The account headings are presented below. Transactions completed during the month follow. a. Schwartz deposited 25,000 in a bank account in the name of the business. b. Bought office equipment on account from QuipCo, 9,670. c. Schwartz invested his personal law library, which cost 2,800. d. Paid the office rent for the month, 1,700, Ck. No. 2000. e. Bought office supplies for cash, 418, Ck. No. 2001. f. Bought insurance for two years, 944, Ck. No. 2002. g. Sold legal services for cash, 8,518. h. Paid the salary of the part-time receptionist, 1,820, Ck. No. 2003. i. Received and paid the telephone bill, 388, Ck. No. 2004. j. Received and paid the bill for utilities, 368, Ck. No. 2005. k. Sold legal services for cash, 9,260. l. Paid on account to QuipCo, 2,670, Ck. No. 2006. m. Schwartz withdrew cash for personal use, 2,500, Ck. No. 2007. 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 April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow. a. Rodriguez deposited 70,000 in a bank account in the name of the business. b. Paid the rent for the month, 2,000, Ck. No. 101 (Rent Expense). c. Bought supplies on account, 150. d. Bought a truck for 23,500, paying 2,500 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 2,400, Ck. No. 102. f. Sold services on account, 4,700. g. Bought office equipment on account from Stern Office Supply, 1,250. h. Sold services for cash for the first half of the month, 8,250. i. Received and paid the bill for utilities, 280, Ck. No. 103. j. Received a bill for gas and oil for the truck, 130. k. Paid wages to the employees, 2,680, Ck. Nos. 104106. l. Sold services for cash for the remainder of the month, 3,500. m. Rodriguez withdrew cash for personal use, 4,000, Ck. No. 107. 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.During February of this year, H. Rose established Rose Shoe Hospital. The following asset, liability, and owners equity accounts are included in the chart of accounts: The following transactions occurred during the month of February: a. Rose deposited 25,000 cash in a bank account in the name of the business. b. Bought shop equipment for cash, 1,525, Ck. No. 1000. c. Bought advertising on account from Milland Company, 325. d. Bought store shelving on account from Inger Hardware, 750. e. Bought office equipment from Sharas Office Supply, 625, paying 225 in cash and placing the balance on account, Ck. No. 1001. f. Paid on account to Inger Hardware, 750, Ck. No. 1002. g. Rose invested his personal leather working tools with a fair market value of 800 in the business h. Sold services for the month of February for cash, 250. PART 1: The Accounting Cycle for a Service Business: Analyzing Business Transactions Required 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental accounting equation, as well as the plus and minus signs and Debit and Credit. 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts. 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction. 4. Foot and balance the accounts.
- On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?In October, A. Nguyen established an apartment rental service. The account headings are presented below. Transactions completed during the month of October follow. a. Nguyen deposited 25,000 in a bank account in the name of the business. b. Paid the rent for the month, 1,200, Ck. No. 2015. c. Bought supplies on account, 225. d. Bought a truck for 18,000, paying 1,000 in cash and placing the remainder on account e. Bought Insurance for the truck for the yean 1,400, Ck. No. 2016. f. Sold services on account 5,000. g. Bought office equipment on account from Henry Office Supply, 2,300. h. Sold services for cash for the first half of the month, 6,050. i. Received and paid the bill for utilities, 150, Ck. No. 2017. j. Received a bill for gas and oil for the truck. 80. k. Paid wages to the employees, 1,400, Ck Nos. 20182020. l. Sold services for cash for the remainder of the month, 4,200. m. Nguyen withdrew cash for personal use, 2,000, Ck. No. 2021. 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, reanalyze each transaction.In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
- In April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow. a. Rodriguez deposited 70,000 in a bank account in the name of the business. b. Paid the rent for the month, 2,000, Ck. No. 101 (Rent Expense). c. Bought supplies on account, 150. d. Bought a truck for 23,500, paying 2,500 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 2,400, Ck. No. 102. f. Sold services on account, 4,700 (Service Income). g. Bought office equipment on account from Stern Office Supply, 1,250. h. Sold services for cash for the first half of the month, 8,250 (Service Income). i. Received and paid the bill for utilities, 280, Ck. No. 103 (Utilities Expense). j. Received a bill for gas and oil for the truck, 130 (Gas and Oil Expense). k. Paid wages to the employees, 2,680, Ck. Nos. 104106 (Wages Expense). l. Sold services for cash for the remainder of the month, 3,500 (Service Income). m. Rodriguez withdrew cash for personal use, 4,000, Ck. No. 107. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001. e. Sold services for cash for the first half of the month, 6,927. f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004. i. Received a bill for gas and oil for the truck, 218. j. Sold services on account, 3,603. k. Sold services for cash for the remainder of the month, 4,612. l. Paid wages to the employees, 3,958, Ck. Nos. 30053007. m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. 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 October, A. Nguyen established an apartment rental service. The account headings are presented below. Transactions completed during the month of October follow. a. Nguyen deposited 25,000 in a bank account in the name of the business. b. Paid the rent for the month, 1,200, Ck. No. 2015 (Rent Expense). c. Bought supplies on account, 225. d. Bought a truck for 18,000, paying 1,000 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 1,400, Ck. No. 2016. f. Sold services on account, 5,000 (Service Income). g. Bought office equipment on account from Henry Office Supply, 2,300. h. Sold services for cash for the first half of the month, 6,050 (Service Income). i. Received and paid the bill for utilities, 150, Ck. No. 2017 (Utilities Expense). j. Received a bill for gas and oil for the truck, 80 (Gas and Oil Expense). k. Paid wages to the employees, 1,400, Ck. Nos. 20182020 (Wages Expense). l. Sold services for cash for the remainder of the month, 4,200 (Service Income). m. Nguyen withdrew cash for personal use, 2,000, Ck. No. 2021. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.