3A-W'07-EX#1-KEY-PR0B 2

3A-W'07-EX#1-KEY-PR0B 2 - Expenses paid (500) Cash provided...

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Econ 3A-W'07-Ex#1-KEY Prob 2 page1 JOURNAL ENTRIES DR CR a Cash 100 Capital stock 100 b Cash 200 Loans payable 200 c Land 175 Cash 175 d Accounts receivable 600 Revenues 600 e Cash 550 Accounts receivable 550 f Expenses 500 Cash 500 g Loans payable 150 Cash 150 h Dividends 10 Cash 10
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Econ 3A-W'07-Ex#1-KEY Prob 2 page2 T-ACCOUNTS CASH ACCOUNTS RECEIVABLE LAND DR CR DR CR DR CR + + + a 100 d 600 c 175 b 200 e 550 c 175 EB 175 e 550 EB 50 f 500 g 150 h 10 EB 15 LOAN PAYABLE CAPITAL STOCK DIVIDENDS DR CR DR CR DR CR + + + b 200 a 100 h 10 g 150 EB 100 EB 10 EB 50 REVENUES EXPENSES DR CR DR CR + + d 600 f 500 EB 600 EB 500
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Econ 3A-W'07-Ex#1-KEY Prob 2 page3 FINANCIAL STATEMENTS GAGGLE IT, inc. GAGGLE IT, inc. Income statement Statement of cash flows Year ended December 31, 2006 Year ended December 31, 2006 Revenues $600 OPERATING Expenses 500 Cash received from customers 550 $ Net income $100
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Unformatted text preview: Expenses paid (500) Cash provided by operations 50 GAGGLE IT, Inc. Statement of retained earnings INVESTING Year ended December 31, 2006 Purchase of land (175) Beginning balance $0 FINANCING Net income 100 Issuance of capital stock 100 Dividends (10) Loan proceeds 200 Ending balance $90 Loan repayment (150) Dividends paid (10) GAGGLE IT, Inc. Total financing 140 Balance sheet December 31, 2006 Increase in cash 15 ASSETS Beginning cash balance-Cash $15 Accounts receivable 50 Ending cash balance 15 $ Land 175 Total assets $240 LIABILITIES AND EQUITY Loan payable $50 Capital stock 100 Retained earnings 90 Total liabilities and equity $240...
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This test prep was uploaded on 04/19/2008 for the course ECON 3A taught by Professor Loster during the Winter '07 term at UCSB.

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3A-W'07-EX#1-KEY-PR0B 2 - Expenses paid (500) Cash provided...

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