Concept explainers
Determining the effects of closing entries on the Owner, Capital account
Learning Objective 3
McGregor Insurance Agency started the year with a beginning capital balance of $27,500. During the year, McGregor insurance Agency earned $34,000 of service Revenue and incurred $23,500 of various expenses. McGregor withdrew $12,000 from the business. After the closing entries are recorded and posted, what will be the balance of McGregor, Capital?
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Chapter 4 Solutions
Horngren's Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (12th Edition)
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Financial Accounting
Intermediate Accounting (2nd Edition)
Intermediate Accounting
Construction Accounting And Financial Management (4th Edition)
Principles of Accounting Volume 2
Managerial Accounting (5th Edition)
- list of employees and payroll calculations four to six depreciation schedules with comments competitive analysis Step 1: Research. Identify a small business idea. Do some research to ensure that you can find a publicly-traded competitor to your business and can find the cost of some equipment necessary to run your business.Step 2: Generate employees.Generate several (2-3) employees for your business, noting their marital status and number of with holdings. Step 3: Select wages.Select a weekly, bi-weekly, or monthly pay period. Research and decide on appropriate wages for your employees. Make sure to include at least two employees with different types of wages (salary, hourly wage, piecework, and commission).Step 4: Calculate payroll.Calculate payroll for one pay period, including taxes and with holdings. Submit a list of your employees and their tax statuses along with your payroll calculations. Calculate the mean and standard deviation of your employees' wages for the given pay…arrow_forwardUE- GRADE 12. Show the solutions. Find the value. Owner's Equity Changes in year: Additional investment Drawings Total Revenues Total Expense 18,000 820,000 790,000arrow_forwardLearning Case #3 Chapter 3 THIS IS A CONTINUATION OF LC 2B. Hawking, Inc. had the following activities occur in the current year: 6. Purchased $189,000 of inventory on account. 7. Earned $536,000 worth of sales revenue, receiving 85% in cash. 8. Incurred selling expenses of $210,000, paying half in cash and still owing the rest. 9. Incurred $33,000 in interest expense to be paid at the beginning of next year. Required a) Show the effects of the above transactions on the accounting equation. Use the transaction number for the date. b) Prepare journal entries for each transaction. c) Post journal entries to the general ledger/T-accounts, summarize accounts, and find balances. d) Prepare an unadjusted trial balance. e) Match your numbers to the prepared financial statements: Income Statement, Retained Earnings Statement, and Balance Sheet. Chapter 3 Learning CaseAnalyzing TransactionsDate Assets Liaiblities Stockholder's Equity…arrow_forward
- 2020.12.30 15:27 accounts of here in form: The for Pascual has entries "a" through "e" to at Dec. 31, All the and equity Identifying Entries Completing the Accounting Cycle| 283 NAME: SCORE: SECTION: PROFESSOR: Problem #4 dentifying and Journalizing Closing Entries of %3D Accounts Receivable Pascual, Withdrawals 524,000 (a) Supplies Service Revenues 1,030,000 Accumulated Depreciation-Furniture Salaries Expense (q) Accumulated Depreciation-Building (p) Supplies Expense 330,000 (a) (c) Salaries Payable Depreciation Expense-Furniture 000, () (a) Depreciation Expense-Building (c) Pascual, Capital 494,000 Required:arrow_forwardLecture note page 15-16, 34-37, see Excel version of the example for detail) For projesct Z- year S inventories is estimated to be S00, accounts receivable is estimated to be $400, and accounts payable is estimated to be S100. a. Calculate the working capital for year 5. Answer b if the working capital in year 6 is estimated to be $600, calculate the CHANGE in working capital in year Answer c. Is this a cash outflow or cash inflow? cash outflow cash inflowarrow_forwardCHALLENGE PROBLEM This problem challenges you to apply your cumulative accountingknowledge to move a step beyond the material in the chapter.Provided below is a partial work sheet for Ardery Advising. REQUIRED During January, Ardery made an additional investment of $1,200.Prepare an income statement, statement of owners equity, and balancesheet for Ardery Advising.arrow_forward
- Most Essential Learning Competencies 1. Identify the elements of the SFP and describe each of them. 2. Prepare an SFP using the report form and the account form with proper classification of items as current and noncurrent. STATEMENT OF FINANCIAL Part 1: At the back of this paper, prepare a Statement of Financial Position pf CDS Enterprise Business for the calendar year 2020 using the following accounts in Report Form: Cash - 5,000 Loans Payable - 77,500 Accounts Receivable - 2,600 Supplies - 2,300 Equipment - 17,000 Owner's equity – 40,000 Accounts Payable - 22,400 Building - 113,000 Part 2: Answer the following questions and write the solutions in a clean paper. Attached your solution with this paper. 1. If assets are Php17,000 and owner's equity is Php10,000, liabilities are 2. At the end of the first month of operations for Juana's Delivery Service, the business had the following accounts: Accounts Receivable, Php1,200; Prepaid Insurance, Php500; Equipment, Php36,200 and Cash,…arrow_forwardWhile completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Purchase Date October 30, Year 1 October 30, Year 1 October 30, Year 1 October 30, Year 1 Basis $16,200 10,000 5,400 19,160 Year 1 Asseta Computers (5-year) office equipment (7-year) Furniture (7-year) Start-up costa In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow Information systems students preparing to graduate. The customer list cost $12,160, and the sale was completed on April 30. During their summer break, Dailin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury…arrow_forwardRenaining Time: 1 hour. 38 minutes, 40 seconds. * Question Completion Status: Question 1 The below selected information is taken from the work sheet for M med by Edward, at s yer d Income Statement St vs Eaity Edward's Contribution Edward, Withdrawals Totals Dr. Cr Dx C. 100,000 52,000 65,000 150,000 Determine the amount for beginning Capital. Note that Edward's Capital was $200,000 at year-end balance sheet (Please r For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px E E X X, ST Te 田田 hp 13 3 esc W +1 %24 %23 (3) 区arrow_forward
- During January 2020 Orgonite Wellness Clinic completed the following transactions : Jan 1 Orgonite received $ 50,000 cash and issued common shares to shareholders 4 Purchased supplies , $ 5,000 , and equipment , $ 2,500 on account 5 Performed checkup services , and received cash , $ 2,500 7 Paid cash to acquire land for an office site , $ 25,000 11 Performed a therapy session , and billed the customer $ 2500 16 Paid for the equipment , purchased Oct 4 on account 17 Paid the telephone bill , $ 150 18 Received partial payment from client on account , $ 2000 22 Paid the water and electricity bills , $ 500 29 Received $ 5,000 cash for conducting a workshop on " Healthy Living " 31 Paid employee salary , $ 4,000 31 Declared and paid dividends of $ 4,500 Requirements : Record each transaction in the journal . Key each transaction by date . Prepare the trial balance of Orgonite , at Jan 31 , 2020 .arrow_forwardLearning Objective 7: Calculate return on assets) In 2018, Ambrosia Corporation LO 7reported $100 million in sales, $18 million in net income, and average total assets of $200 million.What is Ambrosia’s return on assets in 2018?arrow_forwardEVALUATION (100%) Make a video of yourself while answering /discussing in detail the following question. Upload this video clip to a designated folder in Google classroom: Lesson 6: On July 1, 2021, Emilia Clarke opened a small paint shop called "Emilia Clarke Paint Shop." The following were the transactions during the month: Date Transactions 1 3 Invested P100,000 cash in the business Obtained a P30, 000 loan from a bank. Purchased equipment for P20,000 cash. 5 7 10 Purchased goods for P20,000 cash. (Use perpetual inventory system) Sold goods for P10,000 cash. The cost of the goods sold was of P7,000. Withdrew cash P5,000 15 25 Paid utilities expense amounting to P3,000 Paid P5,000 salaries. 31 Requirements: a. Record the transactions in the journal. b. Post the transaction in the ledger. c. Prepare the unadjusted trial balance on July 31, 2021arrow_forward
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