ORMAL BALANCE OF A LIABILITY IS A DEBIT/CREDITTHE NORMAL BALANCE OF AN INCOME ACCOUNT IS A DEBIT/CREDITTHE NORMAL BALANCE OF AN EXPENSE ACCOUNT IS DEBIT CREDIT5THE FOLLOWING OCCURRED DURING DEC 2014INVESTED $20,000 TO START UP COMPANYVPAID RENT TO REALTY CO IN AMOUNT OF $5,000PURCHASED OFFICE FURNITURE FROM FURN CO ON ACCOUNT FOR $30,000VPERFORMED CONSULTING SERVICES FOR $200,000V CASH RECEIPTS FROM CUSTOMER $100,000op CASH DISBURSEMENT TO VENDORS FOR $20,000CashPAID WAGES IN AMOUNT OF $20,000FROM THE ABOVE INFORMATION LISTED ABOVE PREPARE:A TRIAL BALANCE, AN INCOME STATEMENT, AND A BALANCE SHEET,AND A STATEMENT OF CASH FLOW AT DEC 31, 2014ALSO PREPARE A TRIAL BALANCE AT JAN 1, 2015

Question
Asked Sep 11, 2019
30 views

Hello can some please solve number 5 for me please.

ORMAL BALANCE OF A LIABILITY IS A DEBIT/CREDIT
THE NORMAL BALANCE OF AN INCOME ACCOUNT IS A DEBIT/CREDIT
THE NORMAL BALANCE OF AN EXPENSE ACCOUNT IS DEBIT CREDIT
5
THE FOLLOWING OCCURRED DURING DEC 2014
INVESTED $20,000 TO START UP COMPANY
VPAID RENT TO REALTY CO IN AMOUNT OF $5,000
PURCHASED OFFICE FURNITURE FROM FURN CO ON ACCOUNT FOR $30,000
VPERFORMED CONSULTING SERVICES FOR $200,000
V CASH RECEIPTS FROM CUSTOMER $100,000
op CASH DISBURSEMENT TO VENDORS FOR $20,000
Cash
PAID WAGES IN AMOUNT OF $20,000
FROM THE ABOVE INFORMATION LISTED ABOVE PREPARE:
A TRIAL BALANCE, AN INCOME STATEMENT, AND A BALANCE SHEET,
AND A STATEMENT OF CASH FLOW AT DEC 31, 2014
ALSO PREPARE A TRIAL BALANCE AT JAN 1, 2015
help_outline

Image Transcriptionclose

ORMAL BALANCE OF A LIABILITY IS A DEBIT/CREDIT THE NORMAL BALANCE OF AN INCOME ACCOUNT IS A DEBIT/CREDIT THE NORMAL BALANCE OF AN EXPENSE ACCOUNT IS DEBIT CREDIT 5 THE FOLLOWING OCCURRED DURING DEC 2014 INVESTED $20,000 TO START UP COMPANY VPAID RENT TO REALTY CO IN AMOUNT OF $5,000 PURCHASED OFFICE FURNITURE FROM FURN CO ON ACCOUNT FOR $30,000 VPERFORMED CONSULTING SERVICES FOR $200,000 V CASH RECEIPTS FROM CUSTOMER $100,000 op CASH DISBURSEMENT TO VENDORS FOR $20,000 Cash PAID WAGES IN AMOUNT OF $20,000 FROM THE ABOVE INFORMATION LISTED ABOVE PREPARE: A TRIAL BALANCE, AN INCOME STATEMENT, AND A BALANCE SHEET, AND A STATEMENT OF CASH FLOW AT DEC 31, 2014 ALSO PREPARE A TRIAL BALANCE AT JAN 1, 2015

fullscreen
check_circle

Expert Answer

Step 1

The first step is to prepare journals for the entries done :-

  1. Cash a/c debit 20000

         Capital a/c credit 20000

 

  1. Rent a/c debit 5000

         Cash a/c credit 5000

 

  1. Furniture a/s debit 30000

         Creditors a/c credit 30000

 

  1. Debtors a/c debit 200000

         Sales a/c credit    200000

 

  1. Cash a/c debit 100000

       debtors a/c credit 100000

 

  1. Creditors or accounts payable debit   20000

           Cash a/c credit 20000

 

  1. Wages a/c debit 20000

         Cash a/c credit 20000

Step 2

Using the above journals, we will now prepare the trial balance:

 

help_outline

Image Transcriptionclose

Trial Balance of. For the period ending Dec 2014 Amount in $ Debit Particulars Credit Cash 75000 Share Capital 20000 Rent 30000 Furniture Debtors 100000 10000 Creditors 25000 General, selling or administration expenses Sales 200000 230000 Total 230000

fullscreen
Step 3

The income statement wil...

help_outline

Image Transcriptionclose

Income statement of.... For the period ending Dec 2014 Amnt in Particulars Sales 2,00,000.00 Less:cost of goods sold Gross profit 2,00,000.00 Operating expenses Selling expenses & Administrati 25,000.00 Net profit 1,75,000.00

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Bond Yields and Rates of Return A 25-year, 8% semiannual coupon bond with a par value of $1,000 may ...

A: Calculation of bond’s yield to maturity, bond’s current yield and gain or loss on bond’s capital: Th...

question_answer

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump...

A: Stocks are issued at fair value. But, they should record as “par value for share capital” and additi...

question_answer

Q: Allowance for uncollectible account falls under what classification in a balance sheet?  Current ass...

A: Allowance for uncollectible Accounts: This is a contra asset account to the Accounts Receivables acc...

question_answer

Q: Here's the chart for statement of owners equity. For monthEnded may 31st

A: The statement of owner's equity shows the amount contributed by the owners in the business and consi...

question_answer

Q: Uneven Cash Flows; NPV; Sensitivity Analysis MaxiCare Corporation, a not-for-profit organization, sp...

A: NPV is the Net Present value of the investment i.e. the present value of the expected benefit. IRR i...

question_answer

Q: How do i close  expense accounts while getting ready to prepare financial statements?

A: Closing entries: Closing entries are recorded in order to close the temporary accounts such as incom...

question_answer

Q: How to prepare a statement of stockholder's equity, specially in terms of the retained earnings and ...

A: A statement of  owner's equity shows the equity balances owned by the  stockholders showing the comp...

question_answer

Q: Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute...

A: Contribution margin income statement: It is a kind of income statement which reports the sales, vari...

question_answer

Q: Presented below are two independent situations. (a) Novak Co. sold $2,080,000 of 12%, 10-year bonds ...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...