O 0 Preparing financial statements and evaluating business performance[20-30 min]Presented here are the accounts of Gate City Answering Service for the year endedDecember 31, 2012.$ 8,000 Owner investment, 2012$ 28,00032,000 Accounts payable2,600 Accounts receivable30,000 Advertising expense13,000 BuildingLandNote payable11,000Property tax expenseWayne, drawingRent expenseSalary expenseSalary payable1,00015,00065,000 Cash1,300 Equipment192,000 Insurance expense10,000 Interest expense145,2003,00016,0002,500Service revenueSuppliesWayne, capital, 12/31/20117,00054,0004. Answer these questions about the company:a. Was the result of operations for the year a profit or a loss? How much?b. How much in total economic resources does the company have as it movesinto the new year?c. How much does the company owe to creditors?d. What is the dollar amount of the owner's equity in the business at the end ofthe year?

Name: O 0 Preparing financial statements and evaluating business performanc
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: O 0 Preparing financial statements and evaluating business performance[20-30 min]Presented here are the accounts of Gate City Answering Service for the year endedDecember 31, 2012.$ 8,000 Owner investment, 2012$ 28,00032,000 Accounts payable2,600 Ac

"Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Business

Accounting

O0 Preparing financial statements and evaluating business performance [20-30 min] Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. P1-35A $ 8,000 Owner investment, 2012$ 28,000 32,000 Accounts payable Land Note payable Property tax expense Wayne, drawing Rent expense Salary expense Salary payable 11,000 2,600 Accounts receivable 1,000 30,000 Advertising expense 13,000 Building 65,000 Cash 15,000 145,200 3,000 1,300 Equipment 16,000 Service revenue 192,000 Insurance expense 10,000 Interest expense 2,500 7,000 Supplies Wayne, capital, 12/31/2011 54,000 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount of the owner's equity in the business at the end of the year?

O0 Preparing financial statements and evaluating business performance [20-30 min] Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. P1-35A $ 8,000 Owner investment, 2012$ 28,000 32,000 Accounts payable Land Note payable Property tax expense Wayne, drawing Rent expense Salary expense Salary payable 11,000 2,600 Accounts receivable 1,000 30,000 Advertising expense 13,000 Building 65,000 Cash 15,000 145,200 3,000 1,300 Equipment 16,000 Service revenue 192,000 Insurance expense 10,000 Interest expense 2,500 7,000 Supplies Wayne, capital, 12/31/2011 54,000 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount of the owner's equity in the business at the end of the year?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an...

See similar textbooks

Similar questions

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?
Using the income statement for Sentinel Travel Service shown in Practice Exercise 1-4B, prepare a statement of owners equity for the year ended August 31, 2016. Barb Schroeder, the owner, invested an additional 36,000 in the business during the year and withdrew cash of 18,000 for personal use. Barb Schroeder, capital as of September 1, 2015, was 380,000.
Using the income statement for Adventure Travel Service shown in Practice Exercise 1-4A, prepare a statement of owners equity for the year ended April 30, 2019. Jerome Foley, the owner, invested an additional 60,000 in the business during the year and withdrew cash of 40,000 for personal use. Jerome Foley, capital as of May 1, 2018, was 1,020,000.
Question: Quality Service Inc. has the following accounts balances in their charts of accounts balances as at June 1, 2020: Cash $138,000; Accounts receivable $0; Land $ 30,000; Building $0; Supplies $0; Accounts payable $0; Notes payable $0; Quality-capital $70,000; Service revenue $98,000; Utilities, salary expense $0. The company also presented the following transactions for the month: June 1. Purchased supplies for $1000 on account June 4. Purchased a building for, $62,100 cash June 6. Performed service for a client on account, $12,000 June 10. Borrowed $7,000 cash, signing a note payable June 13. Paid the liability from June 1 June 17. Sold for $15,000 land that had cost this same amount June 21. Received $8000 cash from June 10 transaction June 30. Paid utilities expense of $600 and salary expense $2,500 Requirements: State the effect each transaction from June 1st -30th will have…
Q1. Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018. Owner investment,2018 $ 32,000 Land $ 7,000 Accounts payable $ 14,000 Notes payable $ 30,000 Accounts receivable $ 1,700 Property tax expense $ 2,900 Advertising expense $ 17,000 KPMS, drawing $ 32,000 Building $ 137,900 Rent expense $ 13,000 Cash $ 6,000 Salary expense $ 69,000 Equipment $ 17,000 Salary payable $ 500 Insurance Expense $ 2,000 Service revenue $ 192,000 Interest Expense $ 6,000 Supplies $ 8,000 KPMS, Capital 12/31/2018 $ 51,000 Requirements: 1. Prepare KPMS Delivery’s income statement. 2. Prepare the statement of owner’s equity. 3. Prepare the balance sheet. 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount…
Q1. Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018. Owner investment,2018 $ 32,000 Land $ 7,000 Accounts payable $ 14,000 Notes payable $ 30,000 Accounts receivable $ 1,700 Property tax expense $ 2,900 Advertising expense $ 17,000 KPMS, drawing $ 32,000 Building $ 137,900 Rent expense $ 13,000 Cash $ 6,000 Salary expense $ 69,000 Equipment $ 17,000 Salary payable $ 500 Insurance Expense $ 2,000 Service revenue $ 192,000 Interest Expense $ 6,000 Supplies $ 8,000 KPMS, Capital 12/31/2018 $ 51,000 Requirements: Prepare KPMS Delivery’s income statement. (3 Marks) Prepare the statement of owner’s equity. (3 Marks) Prepare the balance sheet. (3 Marks) Answer these…
I need help figuring out the correct journey entries for the items 4d & 10j. Problem#8. Required information [The following information applies to the questions displayed below.] At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash $ 1,990 Accounts payable $ 300 Short-term investments 500 Unearned revenue 1,410 Accounts receivable 3,660 Salaries Payable 960 Supplies 240 Short-term note payable 870 Prepaid expenses 4,810 Common stock ($1 par value) 140 Office equipment 1,620 Additional paid-in capital 6,650 Accumulated depreciation-office equipment* (390) Retained earnings 2,100 *This account has a credit balance representing the portion of the cost of the equipment used in the…
The account balances of Wilson Towing Service at June 30, 2020, follow: Equipment $13,000 Service Revenue $12,000 Supplies 900 Accounts Receivable 6,000 Notes Payable 6,700 Accounts Payable 2,400 Rent Expense 550 Wilson’s Capital, June 1, 2020 4,950 Cash 2,900 Salary Expense 2,700 Required: (i) Prepare the following: Trial Balance Income Statement Statement of Owners Equity Balance Sheet (ii) Evaluate the business performance by calculating Return on Assets, Debt Ratio, and Current Ratio, then state whether the results are favorable or unfavorable by comparing to the following industry averages: Ratio Industry Average ROA 45% Debt Ratio 30% Current Ratio 1.6x
Q4: Prepare Income Statement and Balance Sheet from the following Trial Balance of Abc Company Trial Balance on 30 September 2020 Debit Credit Owners capital 125,000Drawings - owners25,000 Purchases160,000 Wages 30,000 Opening inventories25,000 Travelling expenses5,000 Plant and machinery 105,000 Furniture 45,000 Cash and cash equivalents59,000 Accounts receivable 50,000 Accounts payable 33,000Bank loan 50,000Rent expenses6,000 Marketable securities58,000 Purchase returns 12,000Sales returns5,000 Miscellaneous expenses4,000 Stationery expenses8,000 Salary expenses25,000 Sales 365,000Service revenue 17,500 Interest 7,500 Total610,000610,0001. Closing inventory was RO. 30,0002. Salary expenses of RO. 1,500 were outstanding.3. Cash collected for the services to be performed in future periods is RO. 55004. Depreciation rate for Plant & Machinery is 25% per annum and depreciation expenses for Furniture is 10% per annum.
Preparing financial statements and evaluating business performance Presented here are the accounts of Quick and EZ Delivery Corporation for the year ended December 31, 2020. Land $ 7,000 Common stock $ 32,000 Note payable 30,000 Accounts payable 14,000 Property tax expense 2,900 Accounts receivable 1,700 Dividends 32,000 Advertising expense 17,000 Rent expense 13,000 Building 137,900 Salary expense 69,000 Cash 6,000 Salary payable 500 Equipment 17,000 Service revenue 192,000 Insurance expense 2,000 Supplies 8,000 Interest expense 6,000 Retained earnings, 12/31/2019 51,000 Requirements 1. Prepare Quick and EZ Delivery Corporation’s income statement. 2. Prepare the statement of retained earnings. 3. Prepare the balance sheet. 4. Answer these questions about the company: a. Was the…
Abe Factor opened a new accounting practice called X-Factor Accounting and completed these activities during March 2020: March 1 Invested $50,000 in cash and office equipment that had a fair value of $12,000. 1 Prepaid $9,000 cash for three months’ rent for an office. 3 Made credit purchases of used office equipment for $6,000 and office supplies for $1,200. 5 Completed work for a client and immediately received $6,200 cash. 9 Completed a $4,000 project for a client, who will pay within 30 days. 11 Paid the account payable created on March 3. 15 Paid $3,000 cash for the annual premium on an insurance policy. 20 Received $1,500 as partial payment for the work completed on March 9. 22 Placed an order with a supplier for $4,800 of supplies to be delivered April 7. They must be paid for within 15 days of being received. 23 Completed work for another client for $2,850 on credit. 27 Abe Factor withdrew $3,600 cash from the business to pay some…
Q3: Following is the trial balance of Dhofar Company for the year ended 31st December 2020: Account Debit Credit Owners Equity 48000 Accounts Receivable 17000 Accounts Payable 20000 Notes Payable 4000 Notes Receivable 22000 Bank 38000 4000 Salary expenses 24000 Rent 9000 3000 Insurance expenses 6000 Other Income 14000 Machinery 52000 Buildings 63000 Loan 38000 Sales 194000 Purchases 44000 Sales Return 5000 Purchase Return 24000 Opening Stock 69000 Total 349000 349000 Other information is given: Closing stock is 12000 OMR. Depreciation charges for Building is 10% and Machinery is 20% Required: Income statement as on 31.12.2020 Balance sheet as on 31.12.2020