Dave's Auto Shop was $3510 "in the red" (-$3510) at the end of April, they owed this much to their creditors. At the end of December they were only $478 "in the red." How much money did they make in profit between April and December to achieve this improvement?

Dave's Auto Shop was $3510 "in the red" (-$3510) at the end of April, they owed this much to their creditors. At the end of December they were only $478 "in the red." How much money did they make in profit between April and December to achieve this improvement?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 63.3C

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Exercise 1-8 (Static) Applying measurement principle and revenue recognition principle LO C2 a. Byrde Company purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial statements for the truck?b. Snell Company performs services for a client in May and bills the client $1,000. In June, Snell receives a partial payment of $300 cash. In July, the remaining $700 cash is received. Determine the monthly revenue recorded in May, June, and July applying revenue recognition principle.
PRACTICE (90 MINS.) (Friendly Trucking) On April 1, 2016, Nels Ferter organized a business called Friendly Trucking. During April, the company entered into the following transactions Nets Ferrer deposited Php500,000 cash in a bank account in the name of the business Purchased for Php250,000 a transportation equipment to be use in the business. Nels paid 50% as down Apr 1 Apr 1 payment while the balance will be paid on May 15, 2016 Paid rental for the month of April, Php 5,000 Apr 1 Apr 5 Earned and collected trucking income from Ryan, Php8,000 Apr 5 Apr 8 Earned trucking income from Jesper, Php 30,000 on account. Jesper will pay on May 8, 2016 Apr 10 Paid salaries of drivers, Php10,000 Apr 15 Apr 18 Rented the vehicle to Joshua for Php 35,000, Joshua paid Php20,000 on that date and the balance on April 20 Paid electric bills for the month, Php2,000 Collected from Joshua the balance of his April 15 account Apr 20 Apr 25 Apr 29 Purchased office supplies, Php2,300 Earned and collected…
Question No.6 The following data of HASF Company is available with you. You are required to prepare the followings. Particulars Debit Credit CASH 100,000 INVENTORY 124,500 ACCOUNTS RECEIVABLES 12,000 SHORT TERM INVESTMENT 25,000 FURNITURE 100,000 BUILDING 500,000 UNEARNED REVENUE 27,000 ACCOUNTS PAYABLE 9,000 ACC.DEP.PLANT-FURNITURE 5,000 ACC.DEP.BUILDING 6,000 EQUITY 200,000 CONSULTANCY REVENUE 650,000 REPAIR EXPENSE 2,000 RENT EXPENSE 3,500 INSURANCE EXPSNES 1,000 OTHER GENERAL EXPNSE 1,200 UTILITY EXPENSE 6,000 SALARIES EXPENSE 10,000 INTEREST EXPENSE 800 DEPRECIATION EXPENSE 11,000 SALARIES PAYABLE…
The transactions completed by PS Music during June 2016 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: July 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2016. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2016. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2016 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2016, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2016.
Continuing Problem 4.Total of Debit column: 40,750 The transactions completed by PS Music during June 20Y5 were described .it the end of Chapter 1. The following transactions were completed during July, the second month of businesss operations: July 1. Peyton Smith made an additional investment k PS Music in exchange for common stock by depositing 5,000 in PS Mu wet checking account. 1.Instead of continuing to share office space with a local real estate agency. Peyton decided to rent office space near a local musk store, Paid rent for July, 1,750. 1.Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft and fire. The policy covers a one year period. 2.Received 1,000 on account 3. On behalf of PS Musk, Peyton signed a contract with a local radio station. KXMD, to provide guest spots for the next three months. The contract requires PS Musk to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract Peyton received 7,200 from KXMD as an advance payment for the first two months. 3.Paid 2SO on account 4.Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5.Purchased office equipment on account from Office Mart. 7,500. 8.Paid for a newspaper advertisement 200. 11.Received 1.000 for serving as a disc jockey for a party. 13.Paid 700 to a local audio electronics store for rental of digital recording equipment 14.Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Pane 2 of the two-column journal: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account 850 21.Paid 620 to Upload Musk for use of its current musk demos in making various musk sets. 22.Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23.Served as disc jockey for a party for 2,500 Received 750, with the remainder due August 4.20YS. 27.Paid electric Ml 915. 28.Paid wages of 1,200 to receptionist and part-time assistant. 29.Paid miscellaneous expenses, 540. 30.Served as a disc jockey for a charity ball for 1,500, Received S00 with the remainder due on August 9. 20Y5. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1.400 royalties (musk expense) to National Musk Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts Receivable 1,000 14 Supplies 170 15 Prepaid Insurance 17 Office Equipment 21 Accounts Payable 250 23 Unearned Revenue 31 Common Stock 4.000 33 Dividends 500 41 Fees Earned 6,200 50 Wages Expense 400 51 Office Rent Expense 800 52 Equipment Rent Expense 67S 53 Utilities Expense 300 54 Music Expense 1.590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.
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Question 3A businessman has bought the following items for his business uses: Machinery RM100,000Computers RM50,000Pen RM10A4 paper rim RM15Printer cartridge RM20 Required: (iii) State an accounting concept whichever applicable that requires an accounting adjustment in the presentation of financial statements.
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Q#1 On February 1, 1991 Aslam started a business with a cash investment of Rs. 100,000.He completed the following transactions during the month. February: 03: Purchased merchandise on credit from Esajee Rs. 25,000. 05: Purchased Sales Equipment on account from Babar and Co. Rs. 20,000. 15: Sold merchandise for cash Rs. 10,000 and on credit Rs. 15,000. 20: Paid to Easajee Rs. 15,000. 25: Collection from customers Rs. 10,000. 28: Paid office salaries Rs. 3,000. Required a) Record the above transactions in the General Journal. b) Post the entries from the General Journal into the ledger using T-accounts. c) Balance the accounts and prepare Preclosing Trial Balance in proper form on February 28, 1991 with complete title and column headings.
Q#1 On February 1, 1991 Aslam started a business with a cash investment of Rs. 100,000.He completed the following transactions during the month. February: 03: Purchased merchandise on credit from Esajee Rs. 25,000. 05: Purchased Sales Equipment on account from Babar and Co. Rs. 20,000. 15: Sold merchandise for cash Rs. 10,000 and on credit Rs. 15,000. 20: Paid to Easajee Rs. 15,000. 25: Collection from customers Rs. 10,000. 28: Paid office salaries Rs. 3,000. Required Post the entries from the General Journal into the ledger using T-accounts. Balance the accounts and prepare Preclosing Trial Balance in proper form on February 28, 1991 with complete title and column headings.
Question detail Question Price: 34.95 KES Posted: 3 months ago Accounting Description: Chad Funk is a hair stylist who opened a business selling hair products. He imports products from around the world and sells to salons in Canada. Oct. 1 Purchased $2,400 of hair spray from Orbit Pro; terms 3/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $250. 5 Sold shampoo costing $770 to Barber & Co. for a price of $1,100 with terms of 2/10, n/30, FOB shipping point. The appropriate party paid the shipping cost of $105. 7 Returned $1,600 of inventory to Orbit Pro due to an error in the Oct. 1 order. 10 Paid Orbit Pro for the purchase on October 1. 14 Barber & Co. returned $320 of inventory from the sale on Oct. 5. The inventory had a cost of $224. 22 Received the payment from Barber & Co. on the October 5 sale. 23 Purchased $4,200 of hair conditioner from Keratin Hair; terms 2/10, n/30, FOB shipping point. The appropriate party paid the…