Sanyu Sony started a new business and completed these transactions during December. Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in the name of Sony Electric. 2 The company rented office space and paid $1,000 cash for the December rent. 3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased office supplies by paying $800 cash. 6 The company completed electrical work and immediately collected $1,200 cash for these services. 8 The company purchased $2,530 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $5,000. 18 The company purchased $350 of office supplies on credit. 20 The company paid $2,530 cash for the office equipment purchased on December 8. 24 The company billed a client $900 for electrical work completed; the balance is due in 30 days. 28 The company received $5,000 cash for the work completed on December 15. 29 The company paid the assistant's salary of $1,400 cash for this month. 30 The company paid $540 cash for this month's utility bill. 31 Sanyu Sony withdrew $950 cash from the company for personal use. Chapter 1 Accounting in Business Required 1. Create the following table similar to the one in Exhibit Assets Liabilities + Equity Date Cash + Accounts + Office Office Electrical = Accounts + S. Sony, - S. Sony, + Revenues - Еxpenses + Recelvable Supplies Equlpment Equlpment Payable Сapltal Withdrawals Use additions and subtractions within the table to show the dollar effects of each transaction on indi- vidual items of the accounting equation. Show new balances after each transaction. 2. Prepare the income statement and the statement of owner's equity for the current month, and the bal- ance sheet as of the end of the month. 3. Prepare the statement of cash flows for the current month. Analysis Component 4. Assume that the owner investment transaction on December I was $49,000 cash instead of $65,000 and that Sony Electric obtained another $16,000 in cash by borrowing it from a bank. Compute the dollar effect of this change on the month-end amounts for (a) total assets, (b) total liabilities, and (c) total equity. Assets Liabilities + Equity + Accounts Receivable + Supplies + Equipment Accounts + C. Taylor, C. Taylor, Cash + Revenues Expenses Payable Capital Withdrawals (1) $30,000 $30,000 (2) - 2,500 + $2,500 Bal. 27,500 + 2,500 30,000 + $26,000 + 26,000 (3) -26,000 Bal. 1,500 + 2,500 30,000 (4) + 7,100 +$7,100 Bal. 1,500 9,600 26,000 7,100 30,000 (5) + 4,200 + $4,200 Bal. 5,700 + 9,600 + 26,000 7,100 + 30,000 + 4,200 (6) 1,000 + $1,000 Bal. 4,700 9,600 26,000 7,100 30,000 4,200 - 1,000 + + + (7) 700 700 Bal. 4,000 + 9,600 26,000 7,100 30,000 + 4,200 1,700 (8) + $1,900 1,600 + 300 Bal. 4,000 + 1,900 9,600 26,000 7,100 30,000 6,100 1,700 (9) + 1,900 1,900 Bal. 5,900 + 9,600 + 26,000 7,100 30,000 + 6,100 1,700 (10) 900 900 Bal. 5,000 + + 9,600 + 26,000 6,200 30,000 + 6,100 1,700 (11) 200 $200 Bal. $ 4,800 + $ + $9,600 + $ 26,000 $ 6,200 + $ 30,000 $ 200 + $6,100 $ 1,700 +
Sanyu Sony started a new business and completed these transactions during December. Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in the name of Sony Electric. 2 The company rented office space and paid $1,000 cash for the December rent. 3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased office supplies by paying $800 cash. 6 The company completed electrical work and immediately collected $1,200 cash for these services. 8 The company purchased $2,530 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $5,000. 18 The company purchased $350 of office supplies on credit. 20 The company paid $2,530 cash for the office equipment purchased on December 8. 24 The company billed a client $900 for electrical work completed; the balance is due in 30 days. 28 The company received $5,000 cash for the work completed on December 15. 29 The company paid the assistant's salary of $1,400 cash for this month. 30 The company paid $540 cash for this month's utility bill. 31 Sanyu Sony withdrew $950 cash from the company for personal use. Chapter 1 Accounting in Business Required 1. Create the following table similar to the one in Exhibit Assets Liabilities + Equity Date Cash + Accounts + Office Office Electrical = Accounts + S. Sony, - S. Sony, + Revenues - Еxpenses + Recelvable Supplies Equlpment Equlpment Payable Сapltal Withdrawals Use additions and subtractions within the table to show the dollar effects of each transaction on indi- vidual items of the accounting equation. Show new balances after each transaction. 2. Prepare the income statement and the statement of owner's equity for the current month, and the bal- ance sheet as of the end of the month. 3. Prepare the statement of cash flows for the current month. Analysis Component 4. Assume that the owner investment transaction on December I was $49,000 cash instead of $65,000 and that Sony Electric obtained another $16,000 in cash by borrowing it from a bank. Compute the dollar effect of this change on the month-end amounts for (a) total assets, (b) total liabilities, and (c) total equity. Assets Liabilities + Equity + Accounts Receivable + Supplies + Equipment Accounts + C. Taylor, C. Taylor, Cash + Revenues Expenses Payable Capital Withdrawals (1) $30,000 $30,000 (2) - 2,500 + $2,500 Bal. 27,500 + 2,500 30,000 + $26,000 + 26,000 (3) -26,000 Bal. 1,500 + 2,500 30,000 (4) + 7,100 +$7,100 Bal. 1,500 9,600 26,000 7,100 30,000 (5) + 4,200 + $4,200 Bal. 5,700 + 9,600 + 26,000 7,100 + 30,000 + 4,200 (6) 1,000 + $1,000 Bal. 4,700 9,600 26,000 7,100 30,000 4,200 - 1,000 + + + (7) 700 700 Bal. 4,000 + 9,600 26,000 7,100 30,000 + 4,200 1,700 (8) + $1,900 1,600 + 300 Bal. 4,000 + 1,900 9,600 26,000 7,100 30,000 6,100 1,700 (9) + 1,900 1,900 Bal. 5,900 + 9,600 + 26,000 7,100 30,000 + 6,100 1,700 (10) 900 900 Bal. 5,000 + + 9,600 + 26,000 6,200 30,000 + 6,100 1,700 (11) 200 $200 Bal. $ 4,800 + $ + $9,600 + $ 26,000 $ 6,200 + $ 30,000 $ 200 + $6,100 $ 1,700 +
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 3PA: Domingo Company started its business on January 1, 2019. The following transactions occurred during...
Related questions
Topic Video
Question
Sanyu Sony started a new business and completed these transactions during December.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,