Indicate the effects of the transactions the form below & determine the ending balance of the accounts. (PS: don't mind the numbers that i wrote) Exercise 6Dominic Puzon has just passed the bar exam and started practicing law. Beloware his first month's transactions.1 Began business by investing P 50,000 cash and land with a valueof P 200,000.4 Purchased P7,500 worth of supplies on account.9 Obtained a bank loan of P 500,000.15 Bought laptop computers on account for P 49,000.17 Paid salaries for month, P 1,90021 Purchased printing equipment for P 15,000 cash.24 Paid P25,000 of the outstanding liability for the purchase ofcomputers on January 15.29 Constructed a building on the land, P 400,000.31 Paid one year insurance premium of the building P 4,000.JanIndicate the effects of the transactions in the form below and determine theending balances of the accounts.Owner'sLiabilitiesAssetsPrepaidJan. Cash Supplies Insurance Equipment Land BuildingEquityOwner'sOfficeOfficeAccountsLoansPayable PayableCapital250 0004151,901715,024 5 )29 4 K31 4,n10.

The double entry system is used by the accountants to record the transactions into books of accounts…

Answered: Indicate the effects of the…

Business

Accounting

Indicate the effects of the transactions the form below & determine the ending balance of the accounts.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 56APSA: Problem 2-56A Analyzing Transactions Luis Madero, after working for several years with a large...

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Problem 2-56A Analyzing Transactions Luis Madero, after working for several years with a large public accounting firm decided to open his own accounting service. The business is operated as a corporation under the name Madero Accounting Services. The following captions and amounts summarize Maderos balance sheet at July 31, 2019. The following events occurred during August 2019. Issued common stock to Ms. Garriz in exchange for $15,000 cash. Paid $850 for first months rent on office space. Purchased supplies of $2,250 on credit. Borrowed $8,000 from the bank. Paid $1,080 on account for supplies purchased earlier on credit. Paid secretarys salary for August of $2,150. Performed amounting services for clients who paid cash upon completion of the service in the total amount of $4,700. Used $3,180 of the supplies on hand. Perfumed accounting services for clients on credit in the total amount of $1,920. Purchased $500 in supplies for cash. Collected $1,290 cash from clients for whom services were performed on credit. Paid $1,000 dividend to stockholders. Required: Record the effects of the transactions listed above on the accounting equation. Use the format given in the problem, starting with the totals at July 31, 20l9. Prepare the trial balance at August 31, 2019.
Comprehensive Problem 1 8 Net income. 31,425 Kelly Pitney began her consulting business. Kelly Consulting, on April 1, 20Y8. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter During May, Kelly Consulting entered into the following transactions: May 3.Received cash from clients as an advance payment for services to be provided and recorded it as unearned tree 4,500 5.Received cash from clients on account 2,450. 9.Paid cash for a newspaper advertisement 225. 13.Raid Office Station Co for part of the debt incurred on April , 640. 15.Recorded services provided on account for the period May 1-15, 9,180. 16 Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17.Recorded cash from cash clients for fees earned during the period May 116, 8,360. Record the following transactions on Page 6 of the Journal 20.Purchased support on account 735. 21.Recorded services provided on account for the period May 1620. 4,820 25.Recorded cash from cash clients for fees earned for the period May 1723, 7,900 27.Received cash from clients on account 9,520. 28.Paid part-time receptionist for two weeks salary. 7S0. 30.Raid telephone bill for May. 260 31.Paid electricity bill for May, 810. 31.Recorded cash from cash clients tor lees earned for the period May 2031. 3,300. 31.Recorded services provided on account for the remainder of May, 2,650. 31.Paid dividends 10,500 Instructions 1.The chart of accounts foe Kelly Consulting is shown us Exhibit 9. and the post-closing trial balance as of April 30, 20Y8, is shown in Exhibit 17. for each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1. 20Y8. and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two-column journal starting cm Page of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2.Post the journal to a ledger of four-column accounts. 5.Prepare an unadjusted trial balance. 4.At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (a)Insurance expired during May is 275. (b)Supplies on hand on May II are 715. (c)Depreciation of office equipment for May is 330. (d)Accrued receptionist salary on May 31 is 325. (e)Rent expired during May is 1600. (f)Unearned fees on May 31 are 3,210 5.(Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet 6.Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7.Prepare an adjusted trial balance. 8.Prepare an income statement, a statement of stockholders equity, and a balance sheet. 9.Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10.Prepare a post-closing trial balance.
Case 3-72 Cash- or Accrual-Basis Accounting Karen Ragsdale owns a business that rents parking spots to students at the local university. Karens typical rental contract requires the student to pay the years rent of $450 ($50 per month) on September 1. When Karen prepares financial statements at the end of December, her accountant requires that Karen spread the $450 over the 9 months that each parking Spot is rented. Therefore, Karen can recognize only $200 of revenue (4 months) from each parking spot rental contract in the year the cash is collected and must defer (delay) recognition of the remaining $250 (5 months) to the next year. Karen argues that getting students to agree to rent the parking Spot is the most difficult part of the activity so she Ought to be able to recognize all $450 as revenue when the cash is received from a student. Required: Why do generally accepted accounting principles require the use of accrual accounting rather than cash-basis accounting for transactions like the one described here?
Financial statements Assume that you recently accepted a position with Five Star National Bank Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating a loan request for 300,000 from West Gate Auto Co., a small corporation. In support of the loan application, Joan Whalen, owner and sole stockholder, submitted a Statement of Accounts" (trial balance) for the first year of operations ended October 31, 2016. West Gate Auto Co. Statement of Accounts October 31,2016 Cash.......................... 5,000 Billings Due from Others........ 40,000 Supplies (chemicals, etc.)........ 7,500 Building....................... 222,300 Equipment..................... 50,000 Amounts Owed to Others....... 31,000 Investment in Business......... 179,000 Service Revenue............... 215,000 Wages Expense................ 75,000 Utilities Expense............... 10,000 Rent Expense................... 8,000 Insurance Expense.............. 6,000 Other Expenses................ 1,200 425,000 425,000 1 Explain to Joan Whalen why a set of financial statements (income statement, retained earnings statement, and balance sheet) would be useful to you in evaluating the loan request. 2 In discussing the "Statement of Accounts with Joan Whalen, you discovered that the accounts had not been adjusted at October 31. Analyze the "Statement of Accounts" and indicate possible adjusting entries that might be necessary before an accurate set of financial statements could be prepared. 3 Assuming that an accurate set of financial statements will be submitted by Joan Whalen in a few days, what other considerations or information would you require before making a decision on the loan request?
Question 5Sammi started her business on 1 January 2021 called Trendy. You are required toprepare the GENERAL JOURNAL for the following transactions of Trendy for the first month of operations. Narratives are not required for each journal entry. Jan01 Sammi invested RM50, 000 cash into the business. Jan02 Trendy purchased used motor vehicle for RM20,000. Jan08 Trendy paid rent for RM4, 000. Jan08 Trendy completed work for a client and immediately received RM15, 000. Jan12 Sammi signed a RM50,000 small business loans with CIMB Bank under Trendy’sname. Jan15 Ideal Homes renovated and installed fixtures and fittings at a cost of RM3, 000.Trendy will pay the bill at a later date. Jan15Trendy paid RM1, 000 cash for advertisement in a local magazine. Jan28Trendy completed work for another client on credit and invoiced the client RM5, 000.The client is allowed to settle the bill within 30 days. Jan30Trendy paid Ideal Homes that installed the fixtures and fittings earlier. Jan30Trendy paid…
Problem 4 On October 1,2019 Cristia Spa Service. She owns a proprietorship. During the first 10 days of operation the business the business complete his transaction. To begin operations, Cristia deposits 100,000 personal funds in the bank account titled Cristia’s Spa Service . The business receives the cash and gives Cristia’s Capital Owner’s Equity. October 2 - Pays P20,000 cash for a small building to be used as an office. October 4- Purchases office supplies for P 350 on account October 10- Pays cash of P5,000 for office furniture October12- Pays P 250 on the account payable transaction October 14- Withdraws P2,000 cash for personal use October 30 Withdraws another 1,500 cash for personal use Requirement : a. General journal b. T- Account c. Trial balance
Question 4Sammi started her business on 1 January 2021 called Trendy. You are required to prepare the GENERAL JOURNAL for the following transactions of Trendy for the first month of operations. Narratives are not required for each journal entry.Jan 01Sammi invested RM50, 000 cash into the business.Jan 02Trendy purchased used motor vehicle for RM20,000.Jan 08Trendy paid rent for RM4, 000.Jan 08Trendy completed work for a client and immediately received RM15, 000.Jan 12Sammi signed a RM50,000 small business loans with CIMB Bank under Trendy’s name.Jan 15Ideal Homes renovated and installed fixtures and fittings at a cost of RM3, 000. Trendy will pay the bill at a later date.Jan 15Trendy paid RM1, 000 cash for advertisement in a local magazine.Jan 28Trendy completed work for another client on credit and invoiced the client RM5, 000. The client is allowed to settle the bill within 30 days.Jan 30Trendy paid Ideal Homes that installed the fixtures and fittings earlier.Jan 30Trendy paid RM150…
QUESTION ONEJuan Cruz began professional practice as a system analyst on July 1. He plans to prepare a monthly financial statement. During July, the owner completed these transactionsJuly 1. Owner invested sh 500,000 cash along with computer equipment that had a market value of php. 120,000July 2. Paid sh. 15,000 cash for the rent of office space for the month.July 4. Purchased sh 12,000 of additional equipment on credit (due within 30 days).July 8. He completed a work for Mr. Patrick and immediately he was paid the sh. 32,000 cash.July 10. Completed work for Mr. simon and sent a bill for sh. 27,000 to be paid within 30 days.July 12. Purchased additional equipment for sh. 8,000 in cash.July 15. Paid assistant sh. 6,200 cash as wages for 15 days.July 18. Collected sh. 15,000 on the amount owed by Mr. simon.July 25. Paid sh 12,000 cash to settle the liability on the equipment purchased.July 28. Owner withdrew sh. 500 cash for personal use.July 30. Completed work for Miss Akinyi who paid…
Chapter One Challenge Exercise 1 Expands on: E1-7 LO: 4 Wunderkind Photography entered into the following transactions during February 2022. Stockholders invested $5,000 in the business. Bought photography equipment for a cash payment of $1,000. Bought more photography equipment by signing a $500 note payable. Performed photography services for $400 cash. Performed photography services, and billed the customer $900 on account. Collected $900 from the customer in transaction 5. Paid for February developing and printing, $150. Advertised the business in the Platteville Journal. The $100 cost will be billed to Wunderkind. Paid the advertising bill from transaction 8. Paid $200 for photography supplies. Received $300 cash advance payment from a customer for a photography job to be performed in April. Paid $250 dividend to the stockholders. Instructions: Indicate whether each transaction increases or decreases assets, liabilities, or stockholders’ equity.…
Q No 3: M/s. Khalid Traders started business on March 1, 2006 with a cash investment of Rs.700,000. They completed the following transactions during the month:Mar.2:Paid shop rent in advance for one year Rs.120,000.Mar.4:Purchased furniture for shop on cash Rs.50,000.Mar.5:Opened a bank account with Rs.200,000.Mar.7:Purchased a computer for the business worth Rs.50,000.Mar.10:Purchased merchandise for cash Rs.150,000.Mar.15:Sold merchandise for cash Rs.150,000.Mar.18:Purchased merchandise on credit Rs.50,000.Mar.20:Sold merchandise on credit for Rs.80,000.Mar.23:Proprietor withdrew cash and merchandise for Rs.10,000 and Rs.5,000 respectively.Mar.27:Paid for advertising Rs.25,000.Mar.31:Paid salary to the salesman Rs.15,000 by cheque.REQUIREDi.Identify the each record as a cash, credit or mixed transactionii.Record the above transactions in the General Journal of M/s. Khalid Traders
Part A Anne York is a sole trader who started the business of buying and selling furniture in Brightonon the 1st of October 2021.She is going to prepare accounts to 31st of September 2021. She contributed to the businesswith £10,000 in the Bank, £4,800 cash, 45,000 flat and 12,000 Car. The transactions duringthe month are as follows:2/10 Purchased furniture £5400 for sale on credit from Home Ltd4/10 She bought a computer for £800 and a printer £200 from a local shop in London andpaid by cheque.5/10 Sold goods for £ 2800 and received the money via Bank account12/10 Paid in Cash £110 for repairing printer18/10 Part of furniture returned to Home Ltd £25021/10 The owner received rent £800 for flat and deposited it to the bank account23/10 Sold goods to Rayan £2100; from this amount £1800 cash received immediately andthe rest remains on credit.23/10 Sold goods of £700 to David and received cash24/10 Bought a new Laptop for business use by issuing a cheque £170026/10 Paid the month’s wages…