PA3. LO 8.5 Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.
Q: Ls4 Aong Corporation encounters the following situations: 1. Hong collects $1,300 from a customer in…
A: Adjusted Entry:- It is an entry passed to record any unrecognized income or expenses for the period.
Q: (11) The following transactions are the activities of Excel Ltd in the month of August 2021. Aug 1…
A: Ledger Accounts
Q: Domingo Company started its business on May 1, 2019. The following transactions occurred during the…
A: The trial balance is prepared to record the debit and credit balance of each account of the…
Q: Q1: Ahmad started his own Computer service on January 1, 2020. The following transactions occurred…
A: The accounting equation is as follows Assets=Liabilities+owner's equity
Q: M. Gonzales has the following transactions during August of the current year. Indicate (a) the…
A: Assets = Liabilities + Owner's Equity
Q: Domingo Company started its business on May 1, 2019. The following transactions occurred during the…
A: Trial balance: It implies to one of the company's financials that shows all the assets,…
Q: Domingo Company started its business on January 1, 2019. The following transactions occurred during…
A: Bank reconciliation statement is used to determine the differences between the bank statement…
Q: 2020 Sept 1 Owner started business by bringing in his used van costing RM 45,000 and cash amounting…
A: As posted multiple questions we are answering only first question kindly repost the unanswered…
Q: 2. The T-account of cash of Flax Company shows the following transactions: Account Name: CASH…
A: Calculation of total cash sales : Date Amount 15 January P1,000 28 March P1,850 17 June…
Q: ASSIMILATION 1. Jipuragi Servicing entered into the following transactions during the month of April…
A: Journal Entries Date Particulars Dr. Cr. 01-Apr-20 Cash a/c…
Q: During the month of April 2018, the business paid cash of RO 15,500 to John mart, but it is wrongly…
A: Correct Entry: John mart RO 15,500 Dr / Cash RO 15,500 Cr Entry made: Jack mart RO 15,500 Dr…
Q: Q1 The following is the general ledger summary for Akiko's Sushi Bar after posting transactions for…
A: A trial balance is a list of all the general ledger accounts in a business. Trial Balance is an…
Q: Domingo Company started its business on January 1, 2019. The following transactions occurred during…
A: Trial Balance= It represents the balances which may be debit and credit of ledger accounts. The…
Q: 2020 January 1 Owner started business with Cash OMR Bought Stationary for Cash OMR 5,000. Bought…
A: As per our protocol we provide solution to one question only and in your question there are multiple…
Q: Domingo Company started its business on January 1, 2019. The following transactions occurred during…
A: SOLUTION - Bank Reconciliation is the process of identifying the Difference that exits between the…
Q: June 11. Paid cash for rent, $750.00. C4. 12. Sold services on account to G. Stratton, $800.00. S1.…
A: General Journal: Date Particulars Debit Credit June 11 Rent expense Account... Dr. $750…
Q: 4. Below are the transactions for the month of February 2020 for Mrs Lamuna, a sole trader: Feb 1…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Sept. 7 10 1 Snare invested cash amounting to P 550,000 and furniture worth P85,000. 3 12 16 17 2 19…
A: Trial Balance Particulars Debit Credit Cash 5,95,900 Furniture…
Q: E4.13 (LO 3), AN Keenan Company has an inexperienced accountant. During the first 2 weeks on the…
A: Journal entry: A Journal entry is used to record a business transaction in the accounting records of…
Q: Below are the transactions that Jenny Trading Sdn Bhd (JTSB) incurred during the month of July 2020.…
A: The answer is given below. Explanation:
Q: Ex5.22 The following transactions of Larson Services Inc. occurred during August 2019, its first…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: 2. The following trial balance was extracted from the books of Syarikat Wawa at 31 Mac 2020:…
A: We have to prepare financial statement with the help of trial balance and additional adjustments.
Q: PA3. LO 5,1 The following selected accounts and normal balances existed at year-end. Notice that…
A: Closing entries are the same as the journal entries. The only difference being that the closing…
Q: Domingo Company started its business on January 1, 2019. The following transactions occurredduring…
A: Journal entries recording is the first step of accounting process, under which atleast one account…
Q: 4.) Mr. Ali has been in business for some years. The following trial balance has been extracted from…
A: Financial statement is prepared from the trial balance which include :- Profit and loss and…
Q: Inner Resources Company started its business on April 1, 2019. The following transactions occurred…
A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…
Q: 1.1 S Temba owns and personally operates a business, TS Services. The following are a summary of the…
A:
Q: LO 8.5Inner Resources Company started its business on April 1, 2019. The following transactions…
A: Journal Entries for the Inner Resources Company are recorded in accordance with the rules of debit…
Q: Q1: Ahmad started his own Computer service on January 1, 2020. The following transactions occurred…
A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…
Q: 1. M. Beneby began her business on 1 January 2010. Leger numbers are given at the end of each…
A: The cash book is prepared to post the cash transactions to the book.
Q: 2020 Sept 1 Owner started business by bringing in his used van costing RM 45,000 and cash amounting…
A: Journal Entry means recording of transactions of an entity in chronological manner. Ledger…
Q: 1 Rahat is a trader. The following transactions took place in March 2021. March 3 Cash sales, $580,…
A: Three columnar Cash book is the ledger inclusive of three column discount, cash and bank. It has the…
Q: Inner Resources Company started its business on April 1, 2019. The following transactions occurred…
A: A journal is a detailed account that records all the financial transactions of a business, to be…
Q: 4. Below are the transactions for the month of February 2020 for Mrs Lamuna, a sole trader: Feb 1…
A: b)
Q: PA3. LO 8.5Domingo Company started its business on January 1, 2019. The following transactions…
A: The journal entries are a crucial step of the accounting process as it records the accounting…
Q: On May 15, 2016, Too Ly San opens Too Ly Security Service. Presented below are the transactions for…
A: Under journal entries recording, minimum one account is debited and one account is credited. Then,…
Q: 5. Record the following transactions for the month of November 2020 in the general journal and post…
A: Because of the time constraint journal entries ha been provided, please submit the question again to…
Q: A) Journalize the following transactions in the books of AHMED for the month of March. 2020 B)…
A: In the books of AHMED For the month of March 2020 Date Accounts title $ explanation…
Q: PA5. LO 8.5 Inner Resources Company started its business on April 1, 2019. The following…
A: Journal entry: It is also called as book of original entry. It is used to record a financial…
Q: Domingo Company started its business on January 1, 2019. The following transactions occurred during…
A: A bank reconciliation statement aligns an organization's bank account with its book records by…
Q: 2020 Sept 1 Owner started business by bringing in his used van costing RM 45,000 and cash amounting…
A: A financial statement refers to the statement prepared to know the performance of a business during…
Q: To demonstrate the difference between cash account activity and accrual basis profits (net income),…
A: Cash Basis of Accounting - Under the Cash Basis of accounting, transactions are recorded in the…
Q: B. Mr. Abdullah formed Al-Noor Enterprises on February 2021. During the month, the following…
A: Journal entries consists of 5 columns : Date Accounts title L.F Debit Credit
Q: Inner Resources Company started its business on April 1, 2019. The following transactions occurred…
A: Petty cash is a fund which is created to make small or petty cash expenditure, like postage, water…
Q: 4. Below are the transactions for the month of February 2020 for Mrs Lamuna, a sole trader: Feb 1…
A: The first step of accounting cycle is preparation of journal entries.…
Q: BE2.9 (LO 4) From the ledger balances given below, prepare a trial balance for the Amaro Company at…
A: Trial balance includes both temporary accounts and permanent accounts. All expenses, losses, and…
Q: February 1 Nicole transferred cash of P300,000 from her personal bank account to an account to be…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Hajun Company started its business on May 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $5,000 from their personal account to the business account. B. Paid rent $400 with check #101. C. Initiated a petty cash fund $200 check #102. D. Received $400 cash for services rendered E. Purchased office supplies for $90 with check #103. F. Purchased computer equipment $1,000, paid $350 with check #104 and will pay the remainder in 30 days. G. Received $500 cash for services rendered. H. Paid wages $250, check #105. I. Petty cash reimbursement office supplies $25, Maintenance Expense $125, Miscellaneous Expense $35. Cash on hand $18. Check #106. J. Increased Petty Cash by $50, check #107.Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $7,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $250 check #102. D. Received $350 cash for services rendered. E. Purchased office supplies for $125 with check #103. F. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days. G. Received $750 cash for services rendered. H. Paid wages $375, check #105. I. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106. J. Increased Petty Cash by $70, check #107.Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.
- On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.Comprehensive (Appendix 3.1) Dawson OConnor is the owner of Miller Island Sales, a distributor of fishing supplies. The following is the balance sheet of the company as of December 31, 2018: Dawson keeps very few records and has asked you to help him prepare the 2019 financial statements for Miller Island Sales. An analysis of the 2019 cash transactions recorded in the companys checkbook indicates deposits and checks as follows: Other information about the company is as follows: 1. Accounts receivable at December 31, 2019; 9,200. 2. Accounts payable at December 31: 3. Salaries payable at December 31, 2019, 1,800. 4. Equipment is depreciated by the straight-line method over a 10-year life. The equipment purchased in 2019 was acquired on July 1. All of the equipment will have zero salvage value at the end of its useful life. 5. Interest payable at December 31. 2019: 140. 6. The company uses a periodic inventory system Inventory at December 31, 2019: 17,400. Required: 1. Prepare a worksheet to summarize the transactions and adjustments of Miller Island Sales for 2019. (Hint: Include debit and credit columns for both transactions and adjustments.) 2. Prepare a 2019 income statement and a balance sheet as of December 31, 2019. (Contributed by Waller A. Parker)
- The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1.Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1.Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1.Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2.Received 1,000 cash from customers on account. 3.On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3.Paid 250 to creditors on account. 4.Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5.Purchased office equipment on account from Office Mart, 7,500. 8.Paid for a newspaper advertisement, 200. 11.Received 1,000 for serving as a disc jockey for a party. 13.Paid 700 to a local audio electronics store for rental of digital recording equipment. 14.Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22.Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23.Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27.Paid electric bill, 915. 28.Paid wages of 1,200 to receptionist and part-time assistant. 29.Paid miscellaneous expenses, 540. 30.Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31.Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2019.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Music's checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music: store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 cash from customers on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 to creditors on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 11. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31. Withdrew l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts receivable 1,000 14 Supplies 170 15 Prepaid insurance 17 Office Equipment 21 Accounts payable 250 23 Unearned Revenue 31 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies Expense 300 54 music Expense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1.Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2.Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3.Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4.Prepare an unadjusted trial balance as of July 31, 2019.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?
- The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 20Y5. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 20Y5. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?(Appendix 3.1) Cash-Basis Accounting Puntarelli Contracting keep its accounting records on a cash basis during the year. At year end, it adjusts its books to the accrual basis for preparing its financial statements. At the end of 2018, Puntarelli reported the following balance sheet items. It is now the end of 2019. The companys checkbook shows a balance of 4,700, which includes cash receipts from customers of 51,300 and cash payments of 49,300. An examination of the cash payments shows that: (1) 30,600 was paid to suppliers, (2) 12,700 was paid for other operating costs (including 7,200 paid on January 1 for 2 years annual rent), and (3) 6,000 was withdrawn by T. Puntarelli. On December 51, 2019, (1) customers owed Puntarelli Contracting 55,900, (2) Puntarelli owed suppliers and employees 7,000 and 900, respectively, and (3) the ending inventory was 6,300. Puntarelli is depreciating the equipment using straight line depreciation over a 10-year life (no residual value). Required: 1. Using accrual based accounting, prepare a 2019 income statement (show supporting calculations). 2. Using accrual-based accounting, prepare a December 31, 2019, balance sheet (show supporting calculations).