Financial statement information about four different companies is as follows:
Instructions
- Determine the missing accounts.
- Prepare the owner's equity statement for Alpha company
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.
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 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.
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