Yard Professionals Inc. experienced the following events in Year 1, its first year of operation: 1. Performed services for $29,000 cash. 2. Purchased $5,200 of supplies on account. 3. A physical count on December 31, Year 1, found that there was $1,060 of supplies on hand. Required Based on this information alone: a. Record the events under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. c. What is the balance in the Supplies account as of January 1, Year 2? d. What is the balance in the Supplies Expense account as of January 1, Year 2? Complete this question by entering your answers in the tabs below. Req B1 Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Req A Req C and D Record the events under an accounting equation. (Not all cells require input. Enter any decreases to account balances with a minus sign.) YARD PROFESSIONALS INc. Effect of Events on the Accounting Equation Stockholders' Assets %3D Liabilities Equity Event Accounts Retained Alout
Q: Use the information in Exercise to prepare an October statement of owner’s equity for Ernst…
A:
Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in…
A: Financial Statements are prepared by the management for reporting purposes. These are the essential…
Q: As of December 31 of the current year, Armani Company’s records show the following. Hint: The owner…
A: First we need to calculate net income for Armani company
Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,010 in…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: [The following intorma. On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the…
A: Capital, December 31 = Capital, January 1 + Consulting revenue - Rent expense - Salaries expense -…
Q: As of December 31 of the current year, Armani Company's records show the following. Hint: The owner…
A: Net income = Total revenues - Total expenses
Q: December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,460 in…
A: First we need to find net income for the month of December inorder to prepare statement of owners…
Q: Prepare balance sheet for this transaction. Don Pedro’s Accounting Firm has the following account…
A: Balance sheet is the financial statements of the organization prepared at the end of the year. It…
Q: [The following information applies to the questions displayed below.] As of December 31 of the…
A: Balance Sheet :— It is one of the financial statement that shows assets balances, liabilities…
Q: On October 1, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,780 in…
A: Cash flow statement includes the summary showing receipts and payments made by cash and cash…
Q: As of December 31 of the current year, Armani Company's records show the following. Hint. The owner…
A: Owners equity statement depicts the capital balance of the owner in the business. Any contribution…
Q: On May 1, 2021, the Cash balance in X Company was $76,000. During May, the company rendered services…
A: Cash balance at the end of May = Beginning cash balance + cash collected - expenses paid - withdrew
Q: Yord Professionals Inc experienced the folloving events in Yeor its first year of operation 1…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: The following selected transactions were completed by Silverado Delivery Service during February: 1.…
A: Definition: Rules of Debit and Credit: The following rules are followed for debiting and crediting…
Q: [The following information applies to the questions displayed below.] As of December 31 of the…
A: Balance Sheet - This Statement shows the balance of assets liabilities and Equity as at the balance…
Q: The following selected transactions were completed by Next Day Delivery Services during October:…
A: Accounting Equation: It is a fundamental equation used in accounting to establish the relationship…
Q: On October 1, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,780 in…
A: The balance sheet is the statement of financial position of the business.
Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,010 in…
A: The statement which shows the final balances of all assets, liabilities and equity amounts in a…
Q: [The following information applies to the questions displayed below.] On October 1, Ebony Ernst…
A:
Q: On October 1, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,580 in…
A: the income statement is prepared for the year ended to know profitability and various other purposes…
Q: At the end of the month, the cash account has
A: Given information is: Opening cash balance = -5000 Debit in cash during the period = 8000 Credit in…
Q: Lawson Consulting had the following accounts and amounts on December 31. The Retained Earnings…
A: The financial statements of the business includes the income statement and balance sheet. The income…
Q: [The following information applies to the questions displayed below.] As of December 31 of the…
A: The balance sheet is a part of financial statements. It is prepared by the management at the end of…
Q: reparing a Statement of Cash Flows Dolores Lopez opened a new consulting business. The following…
A: This statement reports all the cash transactions which are responsible for the inflow and outflow of…
Q: [The following information applies to the questions displayed below.] As of December 31 of the…
A: Balance Sheet includes: Assets accounts Liabilities accounts Equity account Assets =Liabilities…
Q: Listed below are six transactions for TUV Company during its first month of operations: 1. Owner…
A: Accounting Equation of the business says that total assets in the business must be equal to total…
Q: As of December 31 of the current year, Armani Company's records show the following. Hint. The owner…
A: Net income = Total revenue - Total expenses
Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in…
A:
Q: Yard Professionals Inc. experienced the following events in Year 1, its first year of operation: 1.…
A: A general ledger account is an account or record used to sort, store and summarize a company's…
Q: The following selected transactions were completed by Silverado Delivery Service during February:1.…
A: Determine the effect on accounting equation:
Q: O'Reully,Ltd,had the following transactions during the month of July: 1.Sold merchandise for…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010…
A: The cash flow statement is prepared to record the cash flow from various activities including…
Q: Omega Transportation Inc., headquartered in Atlanta, Georgia, uses accrual-basis accountingand…
A: Income statement forms a part of financial statements and is prepared with a view to ascertain the…
Q: As of December 31 of the current year, Armani Company’s records show the following. Hint: The owner…
A: Here in this question, we are required to prepare income statement. Income statement can be prepared…
Q: Based on this information the amount of supplies reported on the Year 2 Balance Sheet is $__
A: Balance Sheet is the Statement which shows the balance available on the said date for the different…
Q: As of December 31 of the current year, Armani Company's records show the following. Hint. The owner…
A: Balance sheet is one of the financial statement of the company, which shows all assets, liabilities…
Q: Preparing a Statement of Cash Flows Bob Jacobs opened an advertising agency. The following…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: Pizza Express Inc. began the Year 2 accounting perlod with $2,500 cash, $1,400 of common stock, and…
A: In Entry (2), Revenue is missing from Revenue Column And there is no entry recorded for (2) and (4)…
Q: Brian Sipe began operations of his business, Sipe Sons Incorporated, on January 1, Year One. During…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: During February 2014, its first month of operations, the owner of Alona Enterprises invested cash of…
A: Ending Cash balance = Cash invested + Cash revenue - Cash expense paid
Q: On October 1, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,780 in…
A: Financial statement means the statement including income statement , balance sheet , cash flow…
Q: The following selected transactions were completed by Cota Delivery Service during July: Received…
A: Definition: Accounting equation: Accounting equation is an accounting tool expressed in the form of…
Q: Lawson Consulting, which began operations on December 1, had the following acc 31. The I. Lawson,…
A: The net income is calculated as difference between revenues and expenses. The excess of revenues…
Q: Yard Professionals Inc. experienced the following events in Year 1, its first year of operation 1…
A: Accounting equation is an equation which is used by accountants to analyze the accuracy of…
Q: On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,460…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in…
A: Consulting Revenues $14,620 Expenses: Rent Expense $4,190…
Q: On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in…
A: Cash flow statements: It is a statement that provides information about the outflow or inflow of…
Q: Forest Company had the following transactions during the month of December. What is the December 31…
A: Cash is an asset account and it will be recorded on the current asset on the balance sheet.
Q: As of December 31 of the current year, Armani Company's records show the following. Hint. The owner…
A: Balance Sheet is one of the most important financial statements of a company. The Balance sheet is…
Q: Cambridge Cleaners started business on January 1 and immediately purchased $5,000 of supplies to use…
A: Cash paid for supplies = Amount of supplies purchased - Amount unpaid
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501. e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307. i. Received and paid the heating bill, 248, Ck. No. 504. j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001. e. Sold services for cash for the first half of the month, 6,927. f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004. i. Received a bill for gas and oil for the truck, 218. j. Sold services on account, 3,603. k. Sold services for cash for the remainder of the month, 4,612. l. Paid wages to the employees, 3,958, Ck. Nos. 30053007. m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. Record the transactions and the balance after each transaction 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
- On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501 (Rent Expense). e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012 (Catering Income). g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307 (Catering Income). i. Received and paid the heating bill, 248, Ck. No. 504 (Utilities Expense). j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506 (Salary Expense). Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.In July of this year, M. Wallace established a business called Wallace Realty. The account headings are presented below. Transactions completed during the month follow. a. Wallace deposited 24,000 in a bank account in the name of the business. b. Paid the office rent for the current month, 650, Ck. No. 1000. c. Bought office supplies for cash, 375, Ck. No. 1001. d. Bought office equipment on account from Dellos Computers, 6,300. e. Received a bill from the City Crier for advertising, 455. f. Sold services for cash, 3,944. g. Paid on account to Dellos Computers, 1,500, Ck. No. 1002. h. Received and paid the bill for utilities, 340, Ck. No. 1003. i. Paid on account to the City Crier, 455, Ck. No. 1004. j. Paid truck expenses, 435, Ck. No. 1005. k. Wallace withdrew cash for personal use, 1,500, Ck. No. 1006. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.On July 1, K. Resser opened Ressers Business Services. Ressers accountant listed the following chart of accounts: The following transactions were completed during July: a. Resser deposited 25,000 in a bank account in the name of the business. b. Bought tables and chairs for cash, 725, Ck. No. 1200. c. Paid the rent for the current month, 1,750, Ck. No. 1201. d. Bought computers and copy machines from Ferber Equipment, 15,700, paying 4,000 in cash and placing the balance on account, Ck. No. 1202. e. Bought supplies on account from Wigginss Distributors, 535. f. Sold services for cash, 1,742. g. Bought insurance for one year, 1,375, Ck. No. 1203. h. Paid on account to Ferber Equipment, 700, Ck. No. 1204. i. Received and paid the electric bill, 438, Ck. No. 1205. j. Paid on account to Wigginss Distributors, 315, Ck. No. 1206. k. Sold services to customers for cash for the second half of the month, 820. l. Received and paid the bill for the business license, 75, Ck. No. 1207. m. Paid wages to an employee, 1,200, Ck. No. 1208. n. Resser withdrew cash for personal use, 700, Ck. No. 1209. Required 1. Record the owners name in the Capital and Drawing T accounts. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction. 4. Foot the T accounts and show the balances. 5. Prepare a trial balance as of July 31, 20--. 6. Prepare an income statement for July 31, 20--. 7. Prepare a statement of owners equity for July 31, 20--. 8. Prepare a balance sheet as of July 31, 20--. LO 1, 2, 3, 4, 5, 6
- During February of this year, H. Rose established Rose Shoe Hospital. The following asset, liability, and owners equity accounts are included in the chart of accounts: The following transactions occurred during the month of February: a. Rose deposited 25,000 cash in a bank account in the name of the business. b. Bought shop equipment for cash, 1,525, Ck. No. 1000. c. Bought advertising on account from Milland Company, 325. d. Bought store shelving on account from Inger Hardware, 750. e. Bought office equipment from Sharas Office Supply, 625, paying 225 in cash and placing the balance on account, Ck. No. 1001. f. Paid on account to Inger Hardware, 750, Ck. No. 1002. g. Rose invested his personal leather working tools with a fair market value of 800 in the business h. Sold services for the month of February for cash, 250. PART 1: The Accounting Cycle for a Service Business: Analyzing Business Transactions Required 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental accounting equation, as well as the plus and minus signs and Debit and Credit. 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts. 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction. 4. Foot and balance the accounts.Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.The following information is provided for the first month of operations for Legal Services Inc.: A. The business was started by selling $100,000 worth of common stock. B. Six months rent was paid in advance, $4,500. C. Provided services in the amount of $1,000. The customer will pay at a later date. D. An office worker was hired. The worker will be paid $275 per week. E. Received $500 in payment from the customer in C. F. Purchased $250 worth of supplies on credit. G. Received the electricity bill. We will pay the $110 in thirty days. H. Paid the worker hired in D for one weeks work. I. Received $100 from a customer for services we will provide next week. J. Dividends in the amount of $1,500 were distributed. Prepare the necessary journal entries to record these transactions. If an entry is not required for any of these transactions, state this and explain why.
- Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 17,500. b. Purchased supplies on account, 2,300. c. Earned sales commissions, receiving cash, 13,300. d. Paid rent on office and equipment for the month, 3,000. e. Paid creditor on account, 1,150. f. Paid dividends, 1,800. g. Paid automobile expenses (including rental charge) for month, 1,500, and miscellaneous expenses, 400. h. Paid office salaries, 2,800. i. Determined that the cost of supplies used was 1,050. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August.During December of this year, G. Elden established Ginnys Gym. The following asset, liability, and owners equity accounts are included in the chart of accounts: During December, the following transactions occurred: a. Elden deposited 35,000 in a bank account in the name of the business. b. Bought exercise equipment for cash, 8,150, Ck. No. 1001. c. Bought advertising on account from Hazel Company, 105. d. Bought a display rack on account from Cyber Core, 790. e. Bought office equipment on account from Office Aids, 185. f. Elden invested her exercise equipment with a fair market value of 1,200 in the business. g. Made a payment to Cyber Core, 200, Ck. No. 1002. h. Sold services for the month of December for cash, 800. Required 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental accounting equation, as well as the plus and minus signs and Debit and Credit. 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction. 4. Foot and balance the accounts.