Homework 2

Homework 2 - an increase to the Assets of the company The...

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Homework 2 P2-68B 2.) Income statement- Revenue-$24,500 Expenses-$7,000 Balance- $17,500 Expenses: Accounts Payable-$4,700 Rent-$900 Advertising-$800 Supplies- $600 3.) Net Income-$17,500 - Dividends- $2300 = Retained Earnings $15,200 4.) Cash + Acc. Rec. + Supplies + Land = Acc. Pay. + Com. Stk. + Ret. Ern.
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10,750 + 1650 +600 +11,500= 3700 + 12,600 + 8,200 P2-70B 1.) 11/4- b 11/5- c 11/6- c 11/7- c 11/10- b 11/11- b 11/12- a 11/18- b 11/21- a 11/25- c 11/30- c 2.) Analyzed data, provided in journal entry for question 3. 3.) Assets = Liabilities + Stockholders Equity 11/5- $59,000 Debit $59,000 Credit 11/6- $500 Credit $500 Debit 11/7- $12,000 Credit $12,000 Debit 11/25- $500 Credit $500 Debit 11/30- $1,700 Credit $1,700 Debit Explanation- The initial $59,000 is put in the journal as a debit because it is
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Unformatted text preview: an increase to the Assets of the company. The $500 is a credit because it is money they used for supplies and possibly advertising. The $12,000 Credit on 11/7 is because the company purchased more equipment. The second $500 credit comes from the rent, Accounts payable, due by the company. Lastly, the $1,700 credit comes from the final dividend paid by the Smith Real Estate. Co. P2-72B 1. Cash + Acc. Rec. + Supplies + Land= Acc. Pay. + Common Stock + R/E 1/2- $33,000 I $33,000 1/3-I $3,300 1/4-$1,700 I 1/7-$22,000 I $22,000 1/11-$1,100 I 1/16-I -$3,300 1/17-I $130 1/18--$550 I 1/22-I $150 1/29-$1,100 I 1/31-I $2,300 1/31-I $2,900...
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This note was uploaded on 11/30/2010 for the course ACCY 110 taught by Professor Christopherjones during the Spring '10 term at GWU.

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Homework 2 - an increase to the Assets of the company The...

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