Hodgson+Travel+Exam+Prep

Hodgson+Travel+Exam+Prep - g Remodeled Hodgson’s personal...

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Hodgson’s Travel Company New startup company Feb 1, 2010 Detail of Transactions during the month of February a) Hodgson invested $30,000 cash in the business (inheritance $ from Uncle Fred) b) Paid $20,000 cash for land c) Bought $500 of pink post-its, purple pens and other pretty office supplies, paid $200 cash and the balance on account d) Received $5,500 cash from clients for planning and making spring break arrangements for 122ers e) Performed travel services for clients on account, $3000 (mom and dad did not send money!) f) Paid cash expenses: computer lease $600, office rent $1,100, employee salary (Mrs. Smith) $1,200 and utilities $400
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Unformatted text preview: g) Remodeled Hodgson’s personal dorm room $1,000 from Bed, Bath and Beyond and Crate and Barrel h) Collected $1,000 on account receivables in transaction (e) i) Sold part of the land for $9,000 j) Paid $300 on the account payable created in transaction (c) Prepare the journal entries, T-Accounts and post transactions. Prepare Balance Sheet, Income Statement and Statement of Owner’s Equity for the Month of February What if she financed $15,000 with a note payable and $15,000 with Uncle Fred’s money, how would that effect the Balance Sheet and Statement of Owner’s Equity?...
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This note was uploaded on 01/09/2011 for the course SMG 121 taught by Professor Arnold during the Spring '08 term at BU.

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