FinancialAcctHWSolutionsSu09

FinancialAcctHWSolutionsSu09 - ACCT 2101 Solutions to...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 2101 Solutions to Homework Problems
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Problem 1-5A Simpleton Company Income Statement For the year ended December 31, 2010 Service revenues $32,000 Expenses: Rent $ 6,000 Utilities 3,900 Salaries 12,300 Insurance 2,500 Total expenses 24,700 Net income $ 7,300
Background image of page 2
Simpleton Company Statement of Stockholders’ Equity For the year ended December 31, 2010 Common Stock Retained Earnings Total Stockholders’ Equity Balance at January 1 $15,000 $6,300 $21,300 Issuance of common stock 0 0 Net income for the year 7,300 7,300 Less: Dividends (2,200) (2,200) Balance at December 31 $15,000 $11,400 $26,400 Simpleton Company Balance Sheet December 31, 2010 Assets Liabilities Cash $ 3,800 Accounts payable $ 1,700 Accounts receivable 6,200 Unearned revenue 1,900 Land 20,000 Total liabilities 3,600 Stockholders’ Equity Common stock 15,000 Retained earnings 11,400 Total stockholders’ equity 26,400 Total liabilities and stockholders’ equity $30,000 Total assets $30,000
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Exercise 2-15 Requirement 1 (1) Debit Credit Cash 32,000 Common Stock 32,000 ( Issue common stock ) (2) Land 19,000 Notes Payable 19,000 ( Purchase land with note payable ) (3) Storage Containers 8,000 Cash 8,000 ( Purchase storage containers ) (4) No entry (5) Cash 12,000 Rental Revenue 12,000 ( Receive cash for current month’s rent ) (6) Office Supplies 2,000 Accounts Payable 2,000
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
( Purchase office supplies on account ) (7) Salaries Expense 6,000 Cash 6,000 ( Pay salaries for the current month ) Requirement 2 Cash Common Stock (1) (5) 0 32,000 12,000 8,000 6,000 (3) (7) 0 32,000 (1) 30,000 32,000 Land Notes Payable (2) 0 19,000 0 19,000 (2) 19,000 19,000 Storage Containers Rental Revenue (3) 0 8,000 0 12,000 (5) 8,000 12,000 Office Supplies Accounts Payable
Background image of page 6
(6) 0 2,000 0 2,000 (6) 2,000 2,000 Salaries Expense (7) 0 6,000 6,000 Requirement 3 Trial Balance Account Title Debit Credit Cash $30,000 Office supplies 2,000 Land 19,000 Storage containers 8,000 Accounts payable $ 2,000 Notes payable 19,000 Common stock 32,000 Rental revenue 12,000 Salaries expense 6,000 Totals $65,000 $65,000
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Transaction Assets = Liabilities + Stockholders’ Equity 1. Provide services to customers on account, $1,600. +$1,600 = $0 + +$1,600 2. Pay $400 for current month’s rent. −$400 = $0 + −$400 3. Hire a new employee, who will be paid $500 at the end of each month. $0 = $0 + $0 4. Pay $100 for advertising on a radio station that will be aired in the current period. −$100 = $0 + −$100 5. Purchase office supplies for cash. +$400 −$400 = $0 + $0 6. Receive cash of $1,000 from customers in (1) above. +$1,000 −$1,000 = $0 + $0 7. Obtain a loan from the bank for $7,000. +$7,000 = +$7,000 + $0 8. Receive a bill of $200 for utility costs of the current period. $0
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/26/2009 for the course ACCT 2101 taught by Professor Turner during the Summer '08 term at Georgia Institute of Technology.

Page1 / 57

FinancialAcctHWSolutionsSu09 - ACCT 2101 Solutions to...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online