Prepare BALANCE SHEET ACTIVITY 1CНАРТER 4Direction: Compute the followingEXPANDED FORM : COMPUTE THE FOLLOWINGPROBLEM:MAY 1 Mr. Tan obtained the funds to start the business by withdrawing P900,000 from hispersonal savings. He deposited the money in a bank account he want a build a business "TeaTan's"MAY 3 Mondie boughts a blender machine , refregirator and other necessary equipment fromE.Nena Inc., at a cost of P 50,000 E. Nena INc., agreed to allow 60 days for the firm to pay thebill.MAY 5 Mondie placed an order for electric etc. and other supplies that had a total cost of P10,000. the entity that sold the items, Cagayan Supplies Inc., requires cash payment form abusinesses that are under seven month old.MAY 9 Mondie decided to pay P20,000 to E. Nena Inc. to reduce the firms debt to that business.MAY 13 Tea Tan's earned P 60,000 of revenue from charge account clients. These clients areallowed 30 days to pay.MAY 18 Tea Tan's hired a staff on MAY 1 to help in the business. the firm paid P10,000 in thesalaries for this employee and Mondie.MAY 23 Tea Tan's received P20,000 from clients who had previously bought services onaccount.MAY 27 Tea Tan's earned a total of P110,000 in a revenue from the clients who paid cash forthe products of tea.MAY 30 Tea Tan's received a P25,000 bill for the utilities that it had used during the month.MAY 31 Tea Tan's issued a check as payment for office rent for May. the lease contract Tan'ssigned specified a monthly rent of P35,000.May 31 Mr. Tan withdrew P40,000 in cash from the business to pay for personal use.

Balance sheet is a statement on financial position of an business enterprises. It is called a…

Answered: Prepare BALANCE SHEET

Business

Accounting

Prepare BALANCE SHEET

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 56APSA: Problem 2-56A Analyzing Transactions Luis Madero, after working for several years with a large...

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Problem 2-56A Analyzing Transactions Luis Madero, after working for several years with a large public accounting firm decided to open his own accounting service. The business is operated as a corporation under the name Madero Accounting Services. The following captions and amounts summarize Maderos balance sheet at July 31, 2019. The following events occurred during August 2019. Issued common stock to Ms. Garriz in exchange for $15,000 cash. Paid $850 for first months rent on office space. Purchased supplies of $2,250 on credit. Borrowed $8,000 from the bank. Paid $1,080 on account for supplies purchased earlier on credit. Paid secretarys salary for August of $2,150. Performed amounting services for clients who paid cash upon completion of the service in the total amount of $4,700. Used $3,180 of the supplies on hand. Perfumed accounting services for clients on credit in the total amount of $1,920. Purchased $500 in supplies for cash. Collected $1,290 cash from clients for whom services were performed on credit. Paid $1,000 dividend to stockholders. Required: Record the effects of the transactions listed above on the accounting equation. Use the format given in the problem, starting with the totals at July 31, 20l9. Prepare the trial balance at August 31, 2019.
Exercise 2-41 Transaction Analysis and Business Activities The accountant for Compton Inc. has collected the following information: Compton purchased a tract of land from Jacobsen Real Estate for $875,000 cash. Compton issued 2,000 shares of its common stock to George Micros in exchange for $125,000 cash. Compton purchased a John Deere tractor for $86,000 on credit. Michael Romano paid Compton $10,400 cash for services performed. The services had been performed by Compton several month ago for a [ma] price of $12,000 of which Rotunno had previously paid $1,600. Compton paid its monthly payroll by issuing checks totaling $36,250. Compton declared and paid its annual dividend of $5,000 cash Required: 1. Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use the format below. 2. Indicate whether the transaction is a financing, investing, or operating activity.
Exercise 1-34 Business Activities Bill and Steve recently formed a company that manufactures and sells high-end kitchen appliances. The following is a list of activities that occurred during the year. Bill and Steve each contributed cash in exchange for common stock in the company Land and a building to be used as a factory to make the appliances were purchased for cash. Machines used to make the appliances were purchased for cash. Various materials used in the production of the appliances were purchased for cash. Three employees were paid cash to operate the machines and make the appliances. Running low on money, the company borrowed money from a local bank. The money from the bank loan was used to buy advertising on local radio and television stations. The company sold the appliances to local homeowners for cash. Due to extremely high popularity of its products, Bill and Steve bum another factory building on its land for cash. The company paid a cash dividend to Bill and Steve Required: Classify each of the business activities listed as either an operating activity (0). an investing activity (I), or a financing activity (F).
Problem 2-55A Events and Transactions The accountant for Boatsman Products Inc. received the following information: Boatsman sent its customers a new price list. Prices were increased an average of 3% on all items. Boatsman accepted an offer of 5150.000 for land that it had purchased 2 years ago for 130,000. Cash and the deed for the property are to be exchanged in 5 days. Boatsman accepted $150,000 cash and gave the purchaser the deed for the property described in Item b. Boatmens president purchased 600 shares of the firms common stock from another stock-holder; The president paid $15 per share. The former stockholder had purchased the stock from Boatsman for $4 per share. Boatsman leases its delivery trucks from a local dealer. The dealer also performs maintenance on the trucks for boats man. Boats man received a $1.254 bill for maintenance from the dealer. Required: l. CONCEPTUAL CONNECTION Indicate whether or not each item qualifies as a transaction and should be recorded in the amounting system. Explain your reasoning. 2. CONCEPTUAL CONNECTION What accounting concept is illustrated by Item d?
Continuing Problem 4.Total of Debit column: 40,750 The transactions completed by PS Music during June 20Y5 were described .it the end of Chapter 1. The following transactions were completed during July, the second month of businesss operations: July 1. Peyton Smith made an additional investment k PS Music in exchange for common stock by depositing 5,000 in PS Mu wet 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 musk 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 Musk, Peyton signed a contract with a local radio station. KXMD, to provide guest spots for the next three months. The contract requires PS Musk 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 2SO 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 Pane 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 Musk for use of its current musk demos in making various musk 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 4.20YS. 27.Paid electric Ml 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 S00 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 (musk expense) to National Musk 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: 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 Common Stock 4.000 33 Dividends 500 41 Fees Earned 6,200 50 Wages Expense 400 51 Office Rent Expense 800 52 Equipment Rent Expense 67S 53 Utilities 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, 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.
Brief Exercise 2-2? Events and Transactions Several events are listed below. Paid $30,000 for land. Purchased office supplies for cash. Perfumed consulting services for a client with the amount to be collected in 30 days. Signed a contract to perform consulting services over the next 6 months. Required: For each of the events, identify which ones qualify for recognition in the financial statements. If an event does not qualify for recognition, explain why.