BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.

(a) Invested cash in business, $18,000.

(b) Bought office supplies for $4,600: $2,000 in cash and $2,600 on account.

(c) Paid one-year insurance premium, $1,200.

(d) Earned revenues totaling $3,300: $1,300 in cash and $2,000 on account.

(e) Paid cash on account to the company that supplied the office supplies in transaction (b), $2,300.

(f) Paid office rent for the month, $750.

(g) Withdrew cash for personal use, $100.

REQUIRED

Show the effect of each transaction on the individual accounts of the expanded accounting equation: Assets = Liabilities + Owner’s Equity (CapitalDrawing + RevenuesExpenses). After transaction (g), report the totals for each element. Demonstrate that the accounting equation has remained in balance.

INCOME STATEMENT Based on Problem 2-9A, prepare an income statement for Jay Pembroke for the month of April 20--.

To determine

Prepare an income statement for the month of April.

Explanation

Income statement: Income statement is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Prepare an income statement:

Company JP
Income Statement
For the month of April
ParticularsAmount
Revenues$3,300
Expenses:

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Differentiate price competition and non-price competition.

Foundations of Business (MindTap Course List)

LONG-TERM FINANCING NEEDED At year-end 2014, total assets for Ambrose Inc. were 1.2 million and accounts payabl...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Describe the four common programmed edit checks.

Pkg Acc Infor Systems MS VISIO CD