close solutoin list

MASTERY PROBLEM Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a part-time assistant to answer the phone and handle third-story work. (Lisa is afraid of heights.) The transactions for the month of July are as follows: (a) Lisa invested cash by making a deposit in a bank account for the business, $8,000. (b) Paid rent for July, $150. (c) Purchased a used van for cash, $5,000. (d) Purchased tools on account from Clean Tools, $600. (e) Purchased cleaning supplies that cost $300. Paid $200 cash and will pay the balance next month, $100. (f) Paid part-time assistant (wages) for first half of month, $100. (g) Paid for advertising, $75. (h) Paid two-year premium for liability insurance on van, $480. (i) Received cash from clients for services performed, $800. (j) Performed cleaning services for clients on account, $500. (k) Paid phone bill, $40. (l) Received cash from clients for window cleaning performed on account in transaction (j), $200. (m) Paid part-time assistant (wages) for last half of month, $150. (n) Made partial payment on tools purchased in transaction (d), $200. (o) Earned additional revenues amounting to $800: $600 in cash and $200 on account. (p) Vozniak withdrew cash at the end of the month for personal expenses, $100. REQUIRED 1. Enter the above transactions in an accounting equation similar to the one illustrated below. 2. After transaction (p), compute the balance of each account. 3. Prepare an income statement for We Do Windows for the month of July 20--. 4. Prepare a statement of owner’s equity for We Do Windows for the month of July 20--. 5. Prepare a balance sheet for We Do Windows as of July 31, 20--.

BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160
BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160

Solutions

Chapter
Section
Chapter 2, Problem 1MP
Textbook Problem

MASTERY PROBLEM

Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a part-time assistant to answer the phone and handle third-story work. (Lisa is afraid of heights.) The transactions for the month of July are as follows:

(a) Lisa invested cash by making a deposit in a bank account for the business, $8,000.

(b) Paid rent for July, $150.

(c) Purchased a used van for cash, $5,000.

(d) Purchased tools on account from Clean Tools, $600.

(e) Purchased cleaning supplies that cost $300. Paid $200 cash and will pay the balance next month, $100.

(f) Paid part-time assistant (wages) for first half of month, $100.

(g) Paid for advertising, $75.

(h) Paid two-year premium for liability insurance on van, $480.

(i) Received cash from clients for services performed, $800.

(j) Performed cleaning services for clients on account, $500.

(k) Paid phone bill, $40.

(l) Received cash from clients for window cleaning performed on account in transaction (j), $200.

(m) Paid part-time assistant (wages) for last half of month, $150.

(n) Made partial payment on tools purchased in transaction (d), $200.

(o) Earned additional revenues amounting to $800: $600 in cash and $200 on account.

(p) Vozniak withdrew cash at the end of the month for personal expenses, $100.

REQUIRED

1. Enter the above transactions in an accounting equation similar to the one illustrated below.

Chapter 2, Problem 1MP, MASTERY PROBLEM Lisa Vozniak started her own business, We Do Windows. She offers interior and

2. After transaction (p), compute the balance of each account.

3. Prepare an income statement for We Do Windows for the month of July 20--.

4. Prepare a statement of owner’s equity for We Do Windows for the month of July 20--.

5. Prepare a balance sheet for We Do Windows as of July 31, 20--.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 2 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Show all chapter solutions
Ch. 2 - When payment is made on an existing debt, which...Ch. 2 - Which of the following accounts does not appear on...Ch. 2 - Checkpoint Exercises Label each of the following...Ch. 2 - What is missing from the accounting equation...Ch. 2 - What are the effects of the following transactions...Ch. 2 - Classify the following accounts as assets (A),...Ch. 2 - Name and define the six major elements of the...Ch. 2 - Name and define the six major elements of the...Ch. 2 - List the three basic questions that must be...Ch. 2 - What is the function of an income statement?Ch. 2 - What is the function of a statement of owners...Ch. 2 - What is the function of a balance sheet?Ch. 2 - What are the three basic phases of the accounting...Ch. 2 - SERIES A EXERCISES ACCOUNTING ELE MENT S Label...Ch. 2 - THE ACCOUNTING EQUATION Using the accounting...Ch. 2 - Assets following (d): 32,200 EFFECTS OF...Ch. 2 - EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS)...Ch. 2 - FINANCIAL STATEMENT ACCOUNTS Label each of the...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET INCOME...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET INCOME...Ch. 2 - SERIES A PROBLEMS THE ACCOUNTING EQUATION Dr. John...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION Jay...Ch. 2 - ACCOUNTING ELEMENTS Label each of the following...Ch. 2 - THE ACCOUNTING EQUATION Using the accounting...Ch. 2 - EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS)...Ch. 2 - EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS)...Ch. 2 - FINANCIAL STATEMENT ACCOUNTS Label each of the...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET INCOME...Ch. 2 - STATEMENT OF OWNERS EQUITY REPORTING NET LOSS...Ch. 2 - SERIES B PROBLEMS THE ACCOUNTING EQUATION Dr....Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION...Ch. 2 - EFFECT OF TRANSACTIONS ON ACCOUNTING EQUATION...Ch. 2 - STATEMENT OF OWNERS EQUITY Based on Problem 2-9B,...Ch. 2 - BALANCE SHEET Based on Problem 2-9B, prepare a...Ch. 2 - MANAGING YOUR WRITING Write a brief memo that...Ch. 2 - MASTERY PROBLEM Lisa Vozniak started her own...Ch. 2 - CHALLENGE PROBLEM In this chapter, you learned...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Are employee benefits really necessary? Why?

Foundations of Business (MindTap Course List)

How do unions affect the natural rate of unemployment?

Principles of Macroeconomics (MindTap Course List)

Briefly explain what is meant by the term efficiency continuum.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

COST OF COMMON EQUITY WITH AND WITHOUT FLOTATION The Evanec Companys next expected dividend, D1 is 3.18; its gr...

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

How do the receipts and expenditures of a state-operated lottery affect GDP?

Macroeconomics: Private and Public Choice (MindTap Course List)