information'g information applies to the questionslow.]sulting, which began operations on December 1,wing accounts and amounts on Decembervson, Capital account balance at December 1the owner invested $21,680 cash in theDecember 2. On December 31, the company'sd amounts for the month of December aretable below:$ 14,000 I. Lawson, Withdrawals6,300 Services revenue8,300 Rent expense4,620 Wages expense21,680$ 3,300eceivable17,4003,8008,000ayableCapitalinformation to prepare a December 31for Lawson Consulting. Hint: The ending I.il account balance as of December 31 isLAWSON CONSULTINGBalance SheetTotal equity$$ !Required information[The following information applies to the questionsdisplayed below.]Lawson Consulting, which began operations on December 1,had the following accounts and amounts on December31. The I. Lawson, Capital account balance at December 1was $0 and the owner invested $21,680 cash in thecompany on December 2. On December 31, the company'saccounts and amounts for the month of December areshown in the table below:$ 14,000 I. Lawson, Withdrawals6,300 Services revenue8,300 Rent expense4,620 Wages expense21,680Cash$ 3Accounts receivable17EquipmentAccounts payableI. Lawson, Capital3Use the above information to prepare a December 31balance sheet for Lawson Consulting. Hint: The ending I.Lawson, Capital account balance as of December 31 is$23,980.LAWSON CONSULTINGBalance SheetAccounts receivableAccounts payableTotal equity$$

Name: information'g information applies to the questionslow.]sulting, which
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Description: information'g information applies to the questionslow.]sulting, which began operations on December 1,wing accounts and amounts on Decembervson, Capital account balance at December 1the owner invested $21,680 cash in theDecember 2. On December 31, th

First we need to compute net income for detailed presentation of balance sheet

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information 'g information applies to the questions low.] sulting, which began operations on December 1, wing accounts and amounts on December vson, Capital account balance at December 1 the owner invested $21,680 cash in the December 2. On December 31, the company's d amounts for the month of December are table below: $ 14,000 I. Lawson, Withdrawals 6,300 Services revenue 8,300 Rent expense 4,620 Wages expense $ 3,300 17,400 3,800 8,000 eceivable ayable

information 'g information applies to the questions low.] sulting, which began operations on December 1, wing accounts and amounts on December vson, Capital account balance at December 1 the owner invested $21,680 cash in the December 2. On December 31, the company's d amounts for the month of December are table below: $ 14,000 I. Lawson, Withdrawals 6,300 Services revenue 8,300 Rent expense 4,620 Wages expense $ 3,300 17,400 3,800 8,000 eceivable ayable

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...

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Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: 1. Received cash in exchange for common stock, 18,000. 2. Paid advertising expense, 4,850. 3. Purchased supplies on account, 2,100. 4. Billed customers for delivery services on account, 14,700. 5. Received cash from customers on account, 8,200. Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by 18,000; Common Stock increases by 18,000.
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.
Financial statements Outlaw Realty, organized August 1. 20Y7, is owned and operated by Julie Baxter. How many errors can you find in the following financial statements for Outlaw Realty, prepared after its first month of operations? Assume that the cash balance on August 31, 20Y7, is $51,600 and that cash flows from operating activities is reported correctly.
Financial statements The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and expenses for the year are as follows: Common stock was 525,000 and retained earnings was 1,250,000 as of January 1, 20Y5. During the year, additional common stock of 50,000 was issued for cash, and dividends of 90,000 were paid. Instructions 1. Prepare an income statement for the year ended December 31, 20Y5. 2. Prepare a statement of stockholders equity for the year ended December 31, 20Y5. 3. Prepare a balance sheet as of December 31, 20Y5. 4. What items appears on both the statement of stockholders equity and the balance sheet?
Analyzing Transactions. Using the analytical framework, indicate the effect of the following related transactions of a firm. a. January 1: Issued 10,000 shares of common stock for 50,000. b. January 1: Acquired a building costing 35,000, paying 5,000 in cash and borrowing the remainder from a bank. c. During the year: Acquired inventory costing 40,000 on account from various suppliers. d. During the year: Sold inventory costing 30,000 for 65,000 on account. e. During the year: Paid employees 15,000 as compensation for services rendered during the year. f. During the year: Collected 45,000 from customers related to sales on account. g. During the year: Paid merchandise suppliers 28,000 related to purchases on account. h. December 31: Recognized depreciation on the building of 7,000 for financial reporting. Depreciation expense for income tax purposes was 10,000. i. December 31: Recognized compensation for services rendered during the last week in December but not paid by year-end of 4,000. j. December 31: Recognized and paid interest on the bank loan in Part b of 2,400 for the year. k. Recognized income taxes on the net effect of the preceding transactions at an income tax rate of 40%. Assume that the firm pays cash immediately for any taxes currently due to the government.
Prepare journal entries to record the following transactions that occurred in April: A. on first day of the month, issued common stock for cash, $15,000 B. on eighth day of month, purchased supplies, on account, $1,800 C. on twentieth day of month, billed customer for services provided, $950 D. on twenty-fifth day of month, paid salaries to employees, $2,000 E. on thirtieth day of month, paid for dividends to shareholders, $500
Net income and dividends The income statement of a corporation for the month of February indicates a net income of $32,000. During the same period, $40,000 in cash dividends were paid. Would it be correct to say that the business Incurred a net loss of $8000 during the month? Discuss.
Entries Prepared from a Trial Balance and Proof of the Cash Balance Russell Company was incorporated on January 1 with the issuance of capital stock in return for $120,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $50,000 note payable in exchange for equipment and fixtures. The following trial balance was prepared at the end of the first month by the bookkeeper for Russell Company: Required Determine the balance in the Cash account. Identify all of the transactions that affected the Cash account during the month. Use a T account to prove what the balance in Cash will be after all transactions are recorded.
On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services amounting to P 40,000, 40% of which is on a cash basis. On January 10, the entity collected half of its receivables. During the month, the entity incurred P 40,000 expenses, P 18,000 of which have been paid. An equipment was also bought on account for P 10,000. A withdrawal of P 5,000 was also made. Compute the cash balance as of January 31.
The following selected transactions were completed by Salvo Delivery Service during February: 1. Received cash from owner as additional investment in exchange for common stock, $35,000. 2. Paid creditors on account, $1,800. 3. Billed customers for delivery services on account, $11,250. 4. Received cash from customers on account, $6.740. 5. Paid dividends, $1.000. Requirements: Indicate the effect of each transaction on the following accounting equation elements: Assets, Liabilities, Common Stock.Dividends, Revenue, and Expense. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $35,000: Common Stock increases by $35.000.
Imagine you are the financial accountant of Happiness Ltd. You have the following final balances for the different accounts on 31st December 2021 (the accounting-year end): Value (£) Buildings 300,000 Transportation element 148,000 Accumulated depreciation (buildings) at 01/01/2021 52,500 Accumulated depreciation (transportation element) at 01/01/2021 36,800 Salary expense 16,500 Share premium 7,200 Capital 20,000 Retained earnings at 31/12/2020 97,900 Long term debt 190,300 Cash 60,000 Trade receivables 62,500 Inventory at 31/12/2020 40,000 Purchases 10,000 Sales 200,000 Allowance for trade receivables 2,500 Accrued Expenses 19,500 Trade payables 10,300 Required: a)Prepare the Trial Balance corresponding to the above information. b)Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021. Additional…
The company started August w/ cash of P320,000 receivable of P77,000 and equipment of P500,000 . Total liabilities amount to P90,300. How much is the total of all transactions metioned inthe capital of the company from beginning balance to ending balance? * Prepare Journal Entry The following transactions were dealt with by Daria Company for the month of August: * Purchase of supplies worth P18,000 paid In cash* Rendered services to customer in which payment is yet to be received P20,000* Paid salaries of P10,000