Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 1, Problem 4P
The accounts of Frequent Ad, an agency that develops marketing materials for print, radio, and television, follow. The agency’s first year of operations just ended on January 31, 2014.
REQUIRED
- 1. Prepare Frequent Ad’s income statement, statement of owner’s equity, and balance sheet.
- 2. BUSINESS APPLICATION ▶ Review the financial statements and comment on the financial challenges Frequent Ad faces.
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A few years ago, Sam Gig founded Gig n Spin Consultancy Services. Sam is aware that you and your group members are pursuing an accounting course while in college and therefore has approached the team for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist a trial balance and some additional notes required to make adjustments to the financial statements. The company unadjusted trial balance for the year ended December 31st, 2015 was shown as follows:
Gig n Spin Consultancy ServicesTrial BalanceDecember 31st 2015DR CRCash 120,000Accounts receivable 65,000Supplies 25,000Lease Hold Improvement 100,000Accumulated depreciation - Leasehold Improvement 40,000Furniture and Fixtures 500,000Accumulated depreciation - Furniture and Fittings 300,000Accounts payable 25,000Salary PayableUnearned service revenue 18,500Sam Gig, Capital 223,200Sam Gig, Withdrawal 148,000Service revenue…
A few years ago, Sam Gig founded Gig n Spin Consultancy Services. Sam is aware that you and your group members are pursuing an accounting course while in college and therefore has approached the team for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist a trial balance and some additional notes required to make adjustments to the financial statements. The company unadjusted trial balance for the year ended December 31st, 2021, was shown as follows:
Mig T Accounting Services
Trial Balance
December 31st, 2021
DR
CR
Cash
120,000
Accounts receivable
65,000
Supplies
25,000
Lease Hold Improvement
100,000
Accumulated depreciation - Leasehold Improvement
40,000
Furniture and Fixtures
500,000
Accumulated depreciation - Furniture and…
In this case you will complete the full accounting cycle for one month for a new company. To facilitate the end-of-month accounting and reporting process you will use a worksheet. The worksheet is a tool used to adjust account balances and prepare financial statements, however, the worksheet does not replace the financial statements. Preparation of a worksheet is covered in Appendix 3C on pages 3-46 through 3-49.
The following is information concerning the company. Instructions are at the end of the case.
At the start of the new business the company set up the following chart of accounts:
101
Cash
405
Commissions Earned
106
Accounts Receivable
410
Consulting Revenue
124
Office Supplies
612
Depreciation Expense—Computer Equip.
128
Prepaid Insurance
622
Salaries Expense
167
Computer Equipment
637
Insurance Expense
168
Accumulated Depreciation—Computer Equip.
640
Rent Expense
209
Salaries Payable…
Chapter 1 Solutions
Principles of Accounting
Ch. 1 - What makes accounting a valuable discipline?Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - How are expenses and withdrawals similar, and how...Ch. 1 - How do generally accepted accounting principles...Ch. 1 - Why do managers in governmental and not-for-profit...Ch. 1 - Prob. 1SECh. 1 - Match the descriptions that follow with the...Ch. 1 - Determine the amount missing from each accounting...Ch. 1 - Use the accounting equation to answer each...
Ch. 1 - Use the accounting equation to answer each...Ch. 1 - Prob. 6SECh. 1 - Use the following accounts and balances to prepare...Ch. 1 - Randall Company engaged in activities during the...Ch. 1 - Prob. 9SECh. 1 - Prob. 10SECh. 1 - Prob. 1EACh. 1 - Financial accounting uses money measures to gauge...Ch. 1 - You have been asked to compare the sales and...Ch. 1 - Use the accounting equation to answer each...Ch. 1 - Daiichi Companys total assets and liabilities at...Ch. 1 - 1. Indicate whether each of the following accounts...Ch. 1 - Listed in random order are some of Oxford Services...Ch. 1 - Dukakis Company had the following accounts and...Ch. 1 - Prob. 9EACh. 1 - Prob. 10EACh. 1 - Complete the financial statements that follow by...Ch. 1 - Prob. 12EACh. 1 - Match the terms that follow with the appropriate...Ch. 1 - Prob. 14EACh. 1 - Prob. 15EACh. 1 - Prob. 1PCh. 1 - The following three independent sets of financial...Ch. 1 - Fuel Designs financial accounts follow. The...Ch. 1 - The accounts of Frequent Ad, an agency that...Ch. 1 - Athena Riding Clubs financial statements follow.Ch. 1 - A list of financial statement items follows....Ch. 1 - Three independent sets of financial statements...Ch. 1 - Prob. 8APCh. 1 - Prob. 9APCh. 1 - Aqua Swimming Clubs financial statements follow....Ch. 1 - Costco Wholesale Corporation is Americas largest...Ch. 1 - Prob. 2CCh. 1 - Prob. 3CCh. 1 - Prob. 4CCh. 1 - Refer to the CVS annual report and the financial...
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