Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2018. The following transactions occurred during the month of May
- Trixie invested $7,000 cash in the business.
- Paid $900 for office rent for the month
- Purchased $600 for office rent for the month
- Paid $125 to advertise in the County News.
- Received $4,000 cash for services performed.
- Withdrew $1,000 cash for personal use
- Performed $5,400 of services on account.
- Paid $2,500 for employee salaries.
- Paid for the supplies purchased on account on May 3.
- Received a cash payment of $4,000 for services performed on account on May 15.
- Borrowed $5,000 from the bank on a note payable.
- Purchased equipment for $4,200 on account.
- Paid $275 for utilities
Instructions
- Show the effects of the previous transactions on the accounting equation using the following format:
Date Assets
Cash + Accounts Receivable + Supplies + Equipment = Liabilities
Notes Payable + Accounts Payable + Owner's Equity
Owner's Capital - Owner's Drawings + Revenues - Expenses. - Prepare an income statement for the month of May
- Prepare a balance sheet at May 31,2018
On June 1, Cindy Godfrey started Divine Designs Co., a company that provides cash opportunities by investing $12000 cash in the business. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June
| Cash | $10,150 | Service Revenue | $6,500 |
| Accounts Receivable | $2,800 | Advertising Expense | $500 |
| Suplies | $2,000 | Rent Expense | $1,600 |
| Equipment | $10,000 | Gasoline Expense | $200 |
| Notes Payable | $9,000 | Utilities Expense | $150 |
| Accounts Payable | $1,200 |
Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month.
Instructions
- Prepare an income statement and owner's equity statement for the month of June and a balance sheet at June 30, 2018
- Prepare an income statement and owner's equity statement for June assuming the following data are not included above: (1) $900 of services were performed and billed but not collected at June 30, and (2) $150 of gasoline expense was incurred but not paid.
Judi Salem opened a law office on July 1, 2018. On July 31, the balance sheet showed Cash $5,000, Account Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200 and Owner's Capital $8,800. During August, the following transactions occurred:
- Collected $1,200 of accounts receivable.
- Paid $2,000 cash on accounts payable.
- Recognized revenue of $7,500 of which $3,000 is collected in cash and the balance is due in September
- Purchased additional equipment for $2,000, paying $400 in cash and the balance on account.
- Paid Salaries $2,500 rent for August $900, and advertising expenses $400.
- Withdrew $700 cash for personal use
- Received $2,000 from Standard Federal Bank--money borrowed on a note payable.
- Incurred utility expenses for month on account $270.
Instructions
- Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner's Capital - Owner's Drawings + Revenues - Expenses.
- Prepare an income statement for August, an owner's equity statement for August, and a balance sheet at August 31.
On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were completed during the month:
- Invested $15,000 cash to start the agency
- Paid $600 cash for April office rent.
- Purchased equipment for $3,000 cash.
- Incurred $700 of advertising costs in the Chicago Tribune, on account.
- Paid $900 cash for office supplies.
- Performed services worth $10,000: $3,000 cash is received from customers, and the balance of $7,000 is billed to customers on account.
- Withdrew $600 cash for personal use
- Paid Chicago Tribune $500 of the amount due in transaction (4).
- Paid employees salaries $2,500.
- Received $4,000 in cash from customers who have previously been billed in transactions (6);
Instructions
- Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Owner's Capital, Owner's Drawings, Revenues, and Expenses.
- From an analysis of the owner's equity columns, compute the net income or net loss for April.
Financial statement information about four different companies is as follows:
Instructions
- Determine the missing accounts.
- Prepare the owner's equity statement for Alpha company