Balance Sheet Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $20,000. Bought office supplies for $4,800: $2,000 in cash and $2,800 on account. Paid one-year insurance premium, $1,100. Earned revenues totaling $3,100: $1,200 in cash and $1,900 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,550. Paid office rent for the month, $600. Withdrew cash for personal use, $150.
Balance Sheet Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred. Invested cash in business, $20,000. Bought office supplies for $4,800: $2,000 in cash and $2,800 on account. Paid one-year insurance premium, $1,100. Earned revenues totaling $3,100: $1,200 in cash and $1,900 on account. Paid cash on account to the company that supplied the office supplies in transaction (b), $2,550. Paid office rent for the month, $600. Withdrew cash for personal use, $150.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...
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Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.
- Invested cash in business, $20,000.
- Bought office supplies for $4,800: $2,000 in cash and $2,800 on account.
- Paid one-year insurance premium, $1,100.
- Earned revenues totaling $3,100: $1,200 in cash and $1,900 on account.
- Paid cash on account to the company that supplied the office supplies in transaction (b), $2,550.
- Paid office rent for the month, $600.
- Withdrew cash for personal use, $150.
The effect of each transaction is shown in the individual accounts of the
Assets |
= | Liabilities | + | Owner's Equity | |||||||||||||||
(Items Owned) |
(Amts. Owed) | (Owner's Investment) |
(Earnings) |
||||||||||||||||
Cash | + | Accounts Receivable | + | Office Supplies | + | Prepaid Insurance | = | Accounts Payable | + | J. Pembroke, Capital | - | J. Pembroke, Drawing | + | Revenues | - | Expenses | Description | ||
a. | 20,000 | 20,000 | |||||||||||||||||
b. | (2,000) | 4,800 | 2,800 | ||||||||||||||||
c. | (1,100) | 1,100 | |||||||||||||||||
d. | 1,200 | 1,900 | 3,100 | Service fees | |||||||||||||||
e. | (2,550) | (2,550) | |||||||||||||||||
f. | (600) | 600 | Rent expense | ||||||||||||||||
g. | (150) | 150 | |||||||||||||||||
Bal. | 14,800 | + | 1,900 | + | 4,800 | + | 1,100 | = | 250 | + | 20,000 | - | 150 | + | 3,100 | - | 600 |
The income statement and statement of owner's equity for Jay Pembroke for the month ended April 30, 20-- are shown.
Jay Pembroke Income Statement For Month Ended April 30, 20-- |
|
Revenues: | |
Service fees | $3,100 |
Expenses: | |
Rent expense | 600 |
Net income | $2,500 |
Jay Pembroke Statement of Owner’s Equity For Month Ended April 30, 20-- |
||
Jay Pembroke, capital, April 1, 20-- | $ - | |
Investment during April | 20,000 | |
Total investment | $20,000 | |
Net income for April | $2,500 | |
Less withdrawals for April | 150 | |
Increase in capital | 2,350 | |
Jay Pembroke, capital, April 30, 20-- | $22,350 |
Required:
Use the information to prepare a balance sheet for Jay Pembroke as of April 30, 20--.
Jay Pembroke Balance Sheet April 30, 20-- |
|||
Assets | Liabilities | ||
|
$fill in the blank 2 |
|
$fill in the blank 4 |
|
fill in the blank 6 | ||
|
fill in the blank 8 | Owner's Equity | |
|
fill in the blank 10 |
|
fill in the blank 12 |
Total assets | $fill in the blank 13 | Total liabilities & owner's equity | $fill in the blank 14 |
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