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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