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accounting_ch1homework

accounting_ch1homework - Chapter 1 Homework E1-4 Matching...

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Chapter 1 Homework E1-4 Matching Financial Statement Items to Balance Sheet and Income Statement Categories Mark each item in the following list with letters to indicate whether it would be reported as an asset (A), liability (L), or owners’ equity (OE) account on the balance sheet or a revenue (R) or expense (E) account on the income statement. A 1. Inventories L 6. Notes Payable L 2. Accounts Payable OE 7. Owners’ Capital E 3. Income Tax Expense E 8. Cost of Goods Sold A 4. Equipment E 9. Selling and Administrative Expenses A 5. Accounts Receivable R 10. Sales Revenue E1-5 Matching Financial Statement Items to Balance Sheet and Income Statement Categories Mark each item in the following list with letters to indicate whether it would be reported as an asset (A), liability (L), or owners’ equity (OE) account on the balance sheet or a revenue (R) or expense (E) account on the income statement. L 1. Accounts Payable A 7. Cash A 2. Accounts Receivable A 8. Machinery L 3. Wages Payable E 9. Promotion and Advertising Expenses OE 4. Owners’ Capital R 10. Sales Revenue E 5. Income Tax Expense L 11. Notes Payable to Banks A 6. Inventories E 12. Selling and Administrative Expenses E1-6 Preparing Financial Statements John Clay organized Clay Company as a sole proprietorship on January 1, 2010. At the end of January 2010, the following monthly financial data are available: Service Revenue $130,000 Other Expenses 80,000 Wages Expense 15,000 Cash 30,000 Accounts Receivable from Customers 15,000 Supplies 42,000 Accounts Payable (to suppliers for merchandise purchased during the month) 26,000 J. Clay, Capital 26,000 John Clay made no withdrawals during January. Page | 1 1.15.11
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Revenue Service Revenue 130,000 $ Total Revenue 130,000 Expenses Other Expenses 80,000 Wages Expense 15,000 Total Expenses 95,000 Net Income 35,000 $ Clay Company Income Statement For the Month Ended January 31, 2010 J. Clay, capital, January 1, 2010 - $ Add: Investments by owner 26000 Net Income 35000 Less: Withdrawals by owner 0 J. Clay, capital, January 31, 2010 61,000 $ Clay Company Statement of Owner's Equity For the Month Ended January 31, 2010 4.
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