PR 1-4A Transactions; financial statements OBJ. 4, 5 On July 1, 2018, Pek Nga established Hartanah Mentari. Pek completed the following transac- tions during the month of July: a. Opened a business bank account with a deposit of RM25,000 from personal funds. b. Purchased office supplies on account, RM1,850. c. Paid creditor on account, RM1,200. d. Earned sales commissions, receiving cash, RM41,500. e. Paid rent on office and equipment for the month, RM3,600. f. Withdrew cash for personal use, RM4,000. g. Paid automobile expenses (including rental charge) for month, RM3,050, and miscellaneous expenses, RM1,600. h. Paid office salaries, RM5,000. i. Determined that the cost of supplies on hand was RM950; therefore, the cost of supplies used was RM900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets = Liabilities + Owner's Equity Pek Pek Accounts Nga, Nga, Sales Cash - Supplies = Payable + Capital - Drawing + Commissions - Expense - Expense - Expense - Expense Salaries Rent Auto Supplies Misc. Expense 2. Prepare an Statement of Profit or Loss for July, a statement of owner's equity for July, and a Statement of Financial Position as of July 31.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 1.4APR: Transactions; financial statements On August 1, 2018, Brooke Kline established Western Realty....

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Transactions; financial statements On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August: A. Opened a business bank account with a deposit of 35,000 in exchange for common stock. B. Purchased supplies on account, 2,750. C. Paid creditor on account, 1,800. D. Earned sales commissions, receiving cash, 52,800. E. Paid rent on office and equipment for the month, 4,500. F. Paid dividends, 3,000. G. Paid automobile expenses for month, 1,100, and miscellaneous expenses, 1,200. H. Paid office salaries, 5,250. I. Determined that the cost of supplies on hand was 1,750; therefore, the cost of supplies used was 1,000. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
Transactions; financial statements 2. Net income: 10,850 On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: a. Opened a business bank account with a deposit of 24,000 in exchange for common stock. b. Paid rent on office and equipment for the month, 3,600. c. Paid automobile expenses for month, 1,350, and miscellaneous expenses, 600. d. Purchased supplies on account, 1,200. e. Earned sales commissions, receiving cash, 19,800. f. Paid creditor on account, 750. g. Paid office salaries, 2,500. h. Paid dividends, 3,500. i. Determined that the cost of supplies on hand was 300; therefore, the cost of supplies used was 900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: 2. Prepare an income statement for April, a statement of stockholders equity for April, and a balance sheet as of April 30.
Entries into T accounts and trial balance Ken Jones, an architect, organized Jones Architects on April 1, 2018. During the month, Jones Architects completed the following transactions: A. Transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 18,000. B. Purchased used automobile for 19,500, paying 2,500 cash and giving a note payable for the remainder. C. Paid April rent for office and workroom, 3,150. D. Paid cash for supplies, 1,450. E. Purchased office and computer equipment on account 6,500. F. Paid cash for annual insurance policies on automobile and equipment, 2,400. G. Received cash from a client for plans delivered, 12,000. H. Paid cash to creditors on account, 1,800. I. Paid cash for miscellaneous expenses, 375. J. Received invoice for blueprint service, due in May, 2,500. K. Recorded fees earned on plans delivered, payment to be received in May. 15,650. L. Paid salary of assistant. 2,800. M. Paid cash for miscellaneous expenses. 200. N. Paid installment due on note payable, 300. O. Paid gas, oil, and repairs on automobile for April, 550. Instructions 1. Record these transactions directly in the following T accounts, without journalizing: Cash. Accounts Receivable, Supplies. Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, Professional Fees, Rent Expense, Salary Expense, Blueprint Expense, Automobile Expense, Miscellaneous Expense. To the left of each amount entered in the accounts, place the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 3. Prepare an unadjusted trial balance for Jones Architects as of April 50, 2018. 4. Determine the net income or net loss for April.

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