ACCT CoursePack_Spreadsheet

ACCT CoursePack_Spreadsheet - Financial Accounting 205 CH1...

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Financial Accounting 205 CH1 Prob1 Page 1 Demonstration Problem. College student first starting out. Transactions: 1$15,000 gift from parents 2 3 4Pay $3,000 for furniture. 5Earn $2,100 monthly salary. 1/3 is withheld for taxes. 6Pay the mortgage and auto rent Balance sheet Assets: Liabilities: Cash 1,750 Mortgage payable 89,900 Furniture 3,000 Equity: Security deposit 500 "Common stock" 15,000 House 100,000 Retained earnings 350 Total 105,250 Total 105,250 Income statement Salary 2,100 Rent expense (250) Interest expense (800) Taxes expense (700) Net income 350 Pay $10,000 down for a $100,000 townhouse, finance remainder with mortgage Mortgage payments are $900 a month, consisting of $100 principle and $800 interest. Make a $500 security deposit and rent a $14,000 car. Monthly rental payments are $250.
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Financial Accounting 205 CH1 Prob1 WS Page 2 Assets Liability Cash Furniture House = 1 15,000 15,000 2 (10,000) 100,000 90,000 3 (500) 500 4 (3,000) 3,000 Revenue is when you provid 5 1,400 2,100 Salary revenue (700)Tax expense 6 (900) (100) (800)Interest expense (250) (250)Rent expense 1,750 3,000 500 100,000 89,900 15,000 350 Statement of cash flows Income statement Balance sheet Security deposit Mortgage payable "Common stock" Retained earnings
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Financial Accounting 205 CH1 Prob1 WS Page 3 ide a service Expense is when somebody provides a svc to you e
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Financial Accounting 205 CH2 Prob1 Page 4 b. Family Health Care borrowed $10,000 from First National Bank. b. Family Health Care borrowed $10,000 from First National Bank. c. Family Health Care buys land for $12,000 cash. c. Family Health Care buys land for $12,000 cash. d. During the first month of operations, Family Health Care earns patient fees of $5,500, receiving the amount in cash. e. The expenses for the month were as follows: wages, $1,125; rent, $950; utilities, $450; interest, $100; miscellaneous, $275. The expenses for the month were as follows: wages, $1,125; rent, $950; utilities, $450; interest, $100; miscellaneous, $275. f. Family Health Care pays $1,500 to stockholder (Dr. Landry) as dividends. f. Family Health Care pays $1,500 to stockholder (Dr. Landry) as dividends. Cash Land = a. 6,000 6,000 b. 10,000 10,000 c. (12,000) 12,000 d. 5,500 5,500 Fees earned e. (1,125) (1,125) Wages exp (960) (960) Rent exp (450) (450) utilities exp (100) (100) Interest exp (275) (275) Misc exp f. (1,500) (1,500) Divudends Total 5,090 12,000 10,000 6,000 1,090 Income statement for month ended 9/30/03 Fees earned 5,500 Operating expenses: Wages expense (1,125) Rent expense (960) Utilities expense (450) Interest expense (100) Miscellaneous expense (275) Total operating expenses (2,910) Net income 2,590 Statement of cash flows for month ended 9/30/03 Cash flows from operating activities: Cash received from customers 5,500 Deduct cash payments for expenses (2,910) Net cash flow from operating activities 2,590 Cash flows from investing activities: Cash payments for acquisition of land (12,000) Cash flows from financing activities: Cash from sale of cap. stock 6,000 Cash from notes payable 10,000 Deduct cash dividends (1,500) Net cash flow from financing activities 14,500 Net increase in cash 5,090 September 1, 2003 cash balance - September 30, 2003 cash balance 5,090 a. Dr. Landry deposits $6,000 in a bank account in the name of Family Health Care, P.C. in return for shares of stock in the a. Dr. Landry deposits $6,000 in a bank account in the name of Family Health Care, P.C. in return for shares of stock in the corporation.
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This note was uploaded on 04/07/2008 for the course ACCT 205 taught by Professor Johnson during the Spring '08 term at St. Thomas.

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ACCT CoursePack_Spreadsheet - Financial Accounting 205 CH1...

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