Homework 2 accounting - E316. Req. 1 Brief Explanation (a)...

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Unformatted text preview: E316. Req. 1 Brief Explanation (a) Issued capital stock to shareholders for $62,000 cash. (b) Purchased store fixtures for $12,400 cash. (c) Purchased $24,800 of inventory, paying $6,200 cash and the balance on account. (d) Sold $12,400 of goods or services to customers, receiving $8,680 cash and the balance on account. The cost of the goods sold was $3,720. (e) Paid $2,480 in cash for rent, $620 related to the current month and $1,860 related to future months. (f)Paid $1,240 in wages to employees. (g) Used $1,480 of utilities during the month, not yet paid. (h) Received $3,720 cash from customers, $1,240 related to current sales and $2,480 related to goods or services to be provided in the future. Req. 2 Katies Kite Company Income Statement For the Month Ended April 30, 2010 Sales Revenue Expenses: 13,640 Expenses: Cost of sales: 3,720 Wages expense: 1,240 Rent expense: 620 Utilities expense: 1,480 Total expenses: 7,060 Net Income: 6,580 Req. 3 Katies Kite Company Balance Sheet For the Month Ended April 30, 2010 Assets Liabilities Current Assets Current Liabilities Cash 52,080 Accounts Payable 20,080 Accounts receivable 3,720 Unearned Revenue 2,480 Inventory 21,080 Total current liabilities 22,560 Prepaid expenses 1,860 Shareholder s Equity Total current assets 78,740 Contributed Capital 62,000 Store fixtures 12,400 Retained Earnings 6,580 Total shareholders equity 68,580 Total Assets 91,140 Total Liabilities & Shareholder s Equity 91,140 Homework #2 July 22nd 2010 Christina Qinxin Yang SID 20341272 E3-10 Cash 7,200 (g) 2,040 (a) 600 (i) 12,000 (b) 360 (j) 3,600 (c) 17400 (k) 960 (d) 7,200 14160 Accounts R Receivable 30,000 (d) 7,200 22,800 Supplies 1,440 (k) 960 2400 Equipment 9,600 (h) 720 10,320 Land 7,200 7,200 Build lding 26400 26400 Account Payable (g) 2,040 9,600 (e) 420 7,980 Unearned Fee Revenue 3,840 (a) 600 4,440 Note Payable 48,000 48,000 Contribute ted Capital 9,600 (h) 720 10,320 Retained Earnings (j) 3,600 10,800 7,200 Rebuilding F Fee Revenue (c) 17,400 17,400 Rent Revenue (b) 360 360 Wage Expense (i) 12,000 12,000 Utility E Expense (e) 420 420 Req. 3 Net income using the accrual basis of accounting:...
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This note was uploaded on 12/01/2010 for the course UGBA 102A taught by Professor Udpa during the Summer '07 term at University of California, Berkeley.

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Homework 2 accounting - E316. Req. 1 Brief Explanation (a)...

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