FINANCIAL ACCOUNTING:TOOLS FOR BUS/DEC
9th Edition
ISBN: 9781119712282
Author: Kimmel
Publisher: WILEY
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Metlock Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, the company decided to prepare an income statement, retained earnings statement, and balance sheet using the following information.
Accounts payable
$ 4,200
Supplies
$ 2,560
Interest expense
370
Supplies expense
450
Equipment (net)
49,000
Depreciation expense
240
Salaries and wages expense
2,900
Service revenue
20,500
Bonds payable
21,600
Salaries and wages payable
520
Unearned service revenue
4,110
Common stock
9,600
Accounts receivable
1,200
Interest payable
140
Cash
3,950
Using the information, answer the following questions.
Shannon Cook is the owner and operator of Go-For-It LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y8, Go-For-It has assets of $744,000 and liabilities of $179,000. Using the accounting equation, determine the following amounts:
a. Owner's equity as of December 31, 20Y8.$fill in the blank 1
b. Owner's equity as of December 31, 20Y9, assuming that assets increased by $141,000 and liabilities increased by $43,000 during 20Y9.$fill in the blank 2
During 2022, its first year of operations as a delivery service, Shamrock Corp. entered into the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (1) Issued shares of common stock to investors in exchange for $90,000 in cash. Borrowed $40,500 by issuing a note. Purchased delivery trucks for $54,000 cash. Performed services for customers for $14,400 cash. Purchased supplies for $4,230 on account. Paid rent of $4,680. Performed services on account for $9,000. Paid salaries of $25,200. Paid a dividend of $9,900 to shareholders. (2) $ Cash $ Accounts Receivable Assets + $ Supplies $…
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