000 total assets 100000 liabilities wages payable

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Unformatted text preview: ck increases $ 240.000 $ 200,000 Building Notes payable increases $ 200.000 240,000 Total assets Liabilities Wages payable $ Notes payable 200,000 Total liabilities Stockholders’ equity Capital stock $ 100,000 Retained earnings - Total stockholders’ equity 100,000 Total liabilities and equity $ 300,000 Download free ebooks at bookboon.com 33 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #3) Revenues Services to customers $ - Expenses Wages $ 100,000 Utilities - Net income 10,000 $ (10,000) Wages Expense increases $ 10.000 RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #3) Beginning retained earnings $ Plus: Net income (10,000) $ (10,000) Less: Dividends $ (10,000) Please click the advert Ending retained earnings www.job.oticon.dk Download free ebooks at bookboon.com 34 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #3 Assets Cash $ Accounts receivable 50,000 - Building Cash decreases $ 10.000 240,000 Total assets $ 290,000 Liabilities Wages payable $ Notes payable 200,000 Total liabilities $ 200,000 Stockholders’ equity Capital stock $ 100,000 Retained earnings (10,000) Total stockholders’ equity 90,000 Total liabilities and equity $ 290,000 RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #4) Revenues Services to customers $ 30,000 Expenses Wages $ Revenue inreases $ 30.000 10,000 Utilities - Net income 10,000 $ 20,000 $ - RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #4) Beginning retained earnings Plus: Net income 20,000 $ Less: Dividends 20,000 - Ending retained earnings $ 20,000 Download free ebooks at bookboon.com 35 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #4 Assets Cash $ Accounts receivable 80,000 - Building Cash inreases $ 30.000 240,000 Total assets $ 320,000 Liabilities Wages payable $ Notes payable 200,000 Total liabilities $ 200,000 Stockholders’ equity Capital stock $ 100,000 Retained earnings 20,000 Total stockholders’ equity 120,000 Total liabilities and equity $ 320,000 RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #5) Revenues Services to customers $ 30,000 Expenses Wages $ 10,000 Utilities 4,000 Net income 14,000 $ 16,000 $ Utilities Expense increases $ 4.000 - RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #5) Beginning retained earnings Plus: Net income 16,000 $ Less: Dividends 16,000 - Ending retained earnings $ 16,000 Download free ebooks at bookboon.com 36 Accounting Cycle Exercises I Problem 5: Worksheet RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #5 Assets Cash $ Accounts receivable 76,000 - Building Cash decreases $ 4.000 240,000 Total assets $ 316,000 Liabilities Wages payable $ Notes payable 200,000 Total liabilities $ 200,000 Stockholders’ equity Capital stock $ 100,000 Retained earnings 16,000 Total stockholders’ equity 116,000 Total liabilities and equity $ 316,000 Please click the advert Is your recruitment website still missing a piece? Bookboon can optimize your current traffic. By offering our free eBooks in your look and feel, we build a qualitative database of potential candidates. Contact us to hear more [email protected] Download free ebooks at bookboon.com 37 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #6) Revenues Services to customers $ 30,000 Expenses Wages $ 10,000 Utilities 4,000 Net income 14,000 $ 16,000 RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #6) Beginning retained earnings $ Plus: Net income 16,000 $ 16,000 $ 16,000 $ 60,000 Less: Dividends - Ending retained earnings RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #6 Assets Cash Accounts receivable - Building Cash decreases $ 16.000 240,000 Total assets $ 300,000 Liabilities Wages payable $ Notes payable 184,000 Total liabilities $ 184,000 Stockholders’ equity Capital stock Notes payable decreases $ 16.000 $ 100,000 Retained earnings 16,000 Total stockholders’ equity 116,000 Total liabilities and equity $ 300,000 Download free ebooks at bookboon.com 38 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #7) Revenues Services to customers $ 50,000 Expenses Wages $ 10,000 Utilities 4,000 Net income Revenue increases $ 20.000 14,000 $ 36,000 RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #7) Beginning retained earnings $ Plus: Net income 36,000 $ 36,000 $ 36,000 $ 60,000 Less: Dividends - Ending retained earnings RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #7 Assets Cash Accounts receivable 20,000 Building 240,000 Total assets $ 320,000 Accounts receivable increases $ 20.000 Liabilities Wages payable $ Notes payable 184,000 Total liabilities $ 184,000 Sto...
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This homework help was uploaded on 02/26/2014 for the course ACCOUNTING PARCOR taught by Professor Proftamaray during the Spring '14 term at University of the East, Manila.

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