ch01 - Exercise Set C

# ch01 - Exercise Set C - Chapter 1 PROBLEMS SET C P1-1C On...

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PROBLEMS: SET C P1-1C On April 1, Rene Dampsey established Stargate Travel Agency. The following transac- tions were completed during the month. 1. Invested \$10,000 cash to start the agency. 2. Paid \$400 cash for April office rent. 3. Purchased office equipment for \$2,500 cash. 4. Incurred \$300 of advertising costs in the Chicago Tribune, on account. 5. Paid \$600 cash for office supplies. 6. Earned \$9,500 for services rendered: \$3,000 cash is received from customers, and the balance of \$6,500 is billed to customers on account. 7. Withdrew \$200 cash for personal use. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees’ salaries \$2,200. 10. Received \$4,000 in cash from customers who have previously been billed in transaction (6). Instructions (a) Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, and Rene Dampsey, Capital. (b) From an analysis of the column Rene Dampsey, Capital, compute the net income or net loss for April. P1-2C Angie Crawford opened a law office,Angie Crawford,Attorney at Law, on July 1, 2010. On July 31, the balance sheet showed Cash \$4,000, Accounts Receivable \$1,500, Supplies \$500, Office Equipment \$5,000,Accounts Payable \$4,200, and Angie Crawford, Capital \$6,800. During August the following transactions occurred. 1. Collected \$1,400 of accounts receivable. 2.

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ch01 - Exercise Set C - Chapter 1 PROBLEMS SET C P1-1C On...

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