Concept explainers
On October 1. 2019, Santana Rev launched a computer services company. Business Solutions, that is organized as a proprietorship and provides consulting services, computer system installations, and custom program development.
Required
Create a table like the one in Exhibit 1.9 using the following headings for columns: Cash; Accounts Receivable; Computer Supplies; Computer System; Office Equipment; Accounts Payable; S. Rey, Capital; S. Rey, Withdrawals; Revenues; and Expenses. Then use additions and subtractions within the table to show the dollar effects for each of the following October transactions for Business Solutions on the individual items of the
Oct. 1 S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company.
3 The company purchased $1,430 of computer supplies on credit from Harris Office Products.
6 The company billed Easy Leasing $4,800 for services performed in installing a new web server.
8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3.
10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed.
12 The company billed Easy Leasing another $1,400 for services performed.
15 The company received $4,800 cash from Easy Leasing as partial payment toward its account.
17 The company paid $805 cash to repair computer equipment damaged when moving it.
20 The company paid $1,728 cash for advertisements published in the local newspaper.
22 The company received $1,400 cash from Easy Leasing toward its account.
28 The company billed IFM Company $5,208 for services performed.
31 The company paid $875 cash for Lyn Addie's wages for seven days of work this month.
31 S. Rey withdrew $3,600 cash from the company for personal use.
Check Ending balances: Cash. $42,772; Revenues, 111,408: Expenses, $3,408
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
- make a proper Chart of Accounts for ABC Company: Accounts Payable, Accounts Receivable, Advertising Expense, Cash, C.C. Capital, C.C. Drawing, Equipment, Inventory, Prepaid Insurance, Rent Expense, Sales, Supplies, Utilities Expense. We will work on this in class. Upload here if you don't finish in clasarrow_forwardThis problem is designed to enable you to apply the knowledge you have acquired in the preceding chapters. In accounting, the ultimate test is being able to handle data in real life situations. This problem will give you valuable experience. CHART OF ACCOUNTS You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle. When you are analyzing the transactions, think them through by visualizing the T accounts or by writing them down on scratch paper. For unfamiliar types of transactions, specific instructions for recording them are included. However, reason them out for yourself as well. Check off each transaction as it is recorded. Required 1. Journalize the transactions. (Start on page 1 of the general journal if using Excel or Working Papers.) 2. Post the transactions to the ledger accounts. (Skip this step if using CLGL.) 3. Prepare a trial balance. (If using a work sheet, use the first two columns.) 4. Data for the adjustments are as follows: a. Insurance expired during the month, 1,000. b. Depreciation of pool structure for the month, 715. c. Depreciation of fan system for the month, 260. d. Depreciation of sailboats for the month, 900. e. Wages accrued at June 30, 810. Your instructor may want you to use a work sheet for these adjustments. 5. Journalize adjusting entries. 6. Post adjusting entries to the ledger accounts. (Skip this step if using CLGL.) 7. Prepare an adjusted trial balance 8. Prepare the income statement 9. Prepare the statement of owners equity. 10. Prepare the balance sheet. 11. Journalize closing entries. 12. Post closing entries to the ledger accounts. (Skip this step if using CLGL.) 13. Prepare a post-dosing trial balance. Check Figure Trial balance total, 281,858; net income, 7,143; post-dosing trial balance total, 263,341arrow_forwardSwift Company is a merchandising business organized in 2020. It is located in J. Hernandez Avenue, Naga City, with telephone number 1989-1213, and website tswiftmerchandising.com You were asked by the owner, Ms. T. Swift, to create a simple computerized accounting system for her business which they will use for records keeping, preparation of financial statements, and as substantiation for regulatory requirements. The December 31, 2021 post-closing trial balance for the Swift Company follows: Swift Company Post-Closing Trial Balance December 31, 2021 110 Cash ₱ 240,000 120 Accounts Receivable 210,000 130 Merchandise Inventory 730,000 140 Prepaid Rent 90,000 150 Office Supplies 160,000 160 Office Equipment 1,000,000 165 Accumulated Depreciation ₱…arrow_forward
- Delicious Catering completed the following selected transactions during May 2018: (Click the icon to view the transactions.) Read the requirements Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. (Enter "0" for any transactions that do not affect revenues or expenses.) Date May May 5 May 9 May 14 May 23 May 31 May 31 May 31 Amount of Revenue (Expense) for May Cash Basis Amount of Revenue (Expense) $ (3,600) rent salary depr The Accrual Basis Amount of Revenue (Expense) $ 0 Requirement 2. After completing the table, calculate the amount of net income or net loss for Delicious Catering under the accrual basis and cash basis accounting systems for May. (Use parentheses or a minus sign to indicate a…arrow_forwardCreate your own company describing the nature of the company and what it provides (should be providing services like consulting and digital marketing, not retail (no COGs)), and assume it is a sole proprietorship. Show in details the Accounting cycle (journalizing in general journal, posting in general ledger and preparing financial statements ) taking into consideration the following : Transaction to start with not less than 25 transactions ( including at least one unearned and one prepaid transactions ) Use the coding for the accounts used During the adjusting period please make sure you have covered all six categories discussed in class Make sure to show the method used to calculate the depreciation highlighting over the reason on choosing this specific method Complete the accounting cycle till closing stage and present all financial statements and reports needed .arrow_forwardPrepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries. After recording the transactions, post them to T-accounts, which serves as the general ledger for this assignment. Determine the ending balance of each T-account. Kacy Spade, owner, invested $100,750 cash in the company. The company purchased office supplies for $1,250 cash. The company purchased $10,050 of office equipment on credit. The company received $15,500 cash as fees for services provided to a customer. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,700 as fees for services provided. The company paid $1,225 cash for the monthly rent. The company collected…arrow_forward
- Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries. After recording the transactions, post them to T-accounts, which serve as the general ledger for this assignment. Determine the ending balance of each T-account. a. Kacy Spade, owner, invested $100,750 cash in the company. b. The company purchased office supplies for $1,250 cash. c. The company purchased $10,050 of office equipment on credit. d. The company received $15,500 cash as fees for services provided to a customer. e. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,700 as fees for services provided. g. The company paid $1,225 cash for the monthly rent. h. The…arrow_forwardIdentify whether the following group of people belongs to internal or external users ofannual reports for a company. Eexplain their need for financial information.a. Johari, investment banker of CIMB Investment Bank.b. Daisy Ong, purchasing manager of the company. c. Happy Berhad, supplier of the company. d. Great Sdn Bhd, regular customer of the company.e. Amy, officer from Inland Revenue Board.arrow_forwardYou are the loan officer of a multinational bank. A small company, Samson Company, would like to apply for a loan. In support of the loan application, Samson Chan, owner, submitted a Trial Balance for the first year of operations ended on December 31, 2019. You have asked the company to submit other financial statements that include Income Statement, Statement of Financial Position and Cash Flow Statement for evaluating the performance of the company. Samson Company Trial Balance December 31, 2019 2$ Supplies Machinery Equipment 6,400 187,300 68,000 20,500 Cash Share capital Service revenue received 160,000 391,120 Salaries paid Utilities paid Rent paid Insurance paid 121,000 8,000 130,000 9,920 551,120 551,120 In discussing the Trial Balance with Samson Chan, you asked whether adjusting entries have been prepared to get the accounts up to date for the Trial Balance. Samson Chan answered that they have not been adjusted. Required: a. Explain why the bank would need to read other…arrow_forward
- With the information given from the first picture, I need the general ledger filled out, although with how the second pictures showing the layout. I need the transaction of the general ledger in cash, office supplies, office equipment, accounts payable, Diane Bernick capital, Diane Bernice drawing, consulting fees, wage expense, rent expense, phone expense, utilities expense, and miscellaneous expense, thank you!arrow_forwardPrepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside eachtransaction to identify entries. After recording the transactions, post them to T-accounts, which serve as the general ledger for this assignment. Determine the ending balance of each T-account.arrow_forwardDirections: Do the task listed below using the transactions of Masayahin Company for November 2019. Write your answers on a separate sheet of paper. 1. Prepare the journal entries. 2. Post each transaction to its ledger account. 3. Prepare the trial balance. 4. Use the provided account numbers. 302 Masayahin, Drawings 401 Service Revenue 101 Cash 102 Accounts Receivable 103 Supplies 104 Office Equipment 501 Salaries Expense 502 Rent Expense 503 Other Expense 201 Accounts Payable 301 Masayahin, Capital Mario Masayahin established Happy Repair Business. The following are the transactions for the month of November 2019. Nov. 1 He invested P100,000 cash in the business. He purchased supplies amounting to P4,000. He bought office equipment for P10,000 paying P3,000 and the balance will be paid after 30 days. He received P14,000 for services rendered. 4 7. 11 23 He paid P1,000 for the weekly salary of an employee.arrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning