1The following information is available for two different types of businesses for the Year1 accounting year. Hopkins CPAs is a service business that provides accountingservices to small businesses. Sports Clothing is a merchandising business that sellssports clothing to college students.Data for Hopkins CPAs1. Borrowed $44,000 from the bank to start the business.2. Provided $34,000 of services to clients and collected $34,000 cash.3. Paid salary expense of $21,800.Data for Sports Clothing1. Borrowed $44,000 from the bank to start the business.2. Purchased $23,000 inventory for cash.3. Inventory costing $19,300 was sold for $35,000 cash.4. Paid $2,800 cash for operating expenses.Required:a. Prepare an income statement, balance sheet, and statement of cash flows for eachof the companies.Complete this question by entering your answers in the tabs below.HopkinsIncomeStatementHopkinsBalance SheetHopkinsStatementCash FlowsPrepare an income statement for Hopkins.HOPKINS CPASIncome StatementFor the Year Ended December 31, Year 1RevenueExpensesSports Income Sports BalanceSheetStatement$0SportsStatementCash Flows

Revenue:Accounting Services Provided: $34,000Expenses:Salary Expense: $21,800Net Income:Revenue -…

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Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 45P: What accounting method (cash or accrual) would you recommend for the following businesses? a. A gift...

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USE THE FOLLOWING DATA FOR QUESTIONS 24 & 25 The Duke of Earl operates a catering enterprise. His accounting records at the end of 2008 included the following data: ITEMS EXPENSES a. Office expenses : b. Wages & Salaries REVENUE c. Commission Income d. Rent Income START OF THE YEAR a. $35,000 b. $45,000 c. $55,000 d. $65,000 Prepaid 5,000 Owed 10,000 a. $20,000 b. $24,000 c. $26,000 d. $30,000 Owed 3,000 Prepaid 7,000 DURING THE YEAR Paid 15,000 Paid 50,000 END OF THE YEAR Owed 2,500 Prepaid 5,000 Received 25,000 Received 12,000 Owed 1,000 Prepaid 2,000 24. The amount that must be shown in the income statement as Wages & Salaries expense for the year is 25. The amount that must be shown in the income statement as Commission Income for the year is
Assume that you are going to start a Business after graduation. Describe 10 transactions that the business might undertake by using your own idea with the following assumptions: Started business with cash Goods purchase for cash Goods purchased on credit Any asset purchased and paid cash Any asset purchase on credit Sold goods for cash Sold goods on credit Paid any bill Paid salary to staff Cash withdraw from business for personal use Based on your own 10 transactions, prepare: 1. Ledger
Assume that you are going to start a Business after graduation. Describe 10 transactions that the business might undertake by using your own idea with the following assumptions: Started business with cash Goods purchase for cash Goods purchased on credit Any asset purchased and paid cash Any asset purchase on credit Sold goods for cash Sold goods on credit Paid any bill Paid salary to staff Cash withdraw from business for personal use Based on your own 10 transactions, prepare: 1. Trail Balance
Imagine you are the finance manager of Al Mohsin Company. The company management feels that the cash management of the company should be made more effective. The following information from the company’s records is available to you: Business Studies Department, University of Technology & Applied Sciences (UTAS) Ministry of Manpower, Outcomes for the Assignment: Graduate Attributes Covered: Student ID : Name: Section No:1 Month Sales February 40,000 March 55,000 April 60,000 May 74,000 June 90,000 Additional Information Purchase Wages 20,000 7,000 14,000 8,000 28,000 9,000 30,000 9,000 32,000 8,800 Miscellaneous expenses 1,000 3,000 2,000 2,000 3,500 1. Al Mohsin LLC expects to have RO 8,000 cash balance at the beginning of April. 2. Period of credit allowed by suppliers – 2 months 3. 40% of the total sale is for cash. Half of the credit sale is collected in the next month of sale and the remaining half in the following month after that. 4. Delay…
rrent Attempt in Progress n providing accounting services to small businesses, you encounter the following situations. 1. 2. Lily Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre-tax sales of sales $4,200 plus GST of $210 and PST of $336. (i) During the month of March, Bramble Corporation's employees earned gross salaries of $60,000. Withholdings deducted from employee earnings related to these salaries were $3,254 for CPP, $948 for El, $7,050 for income taxes. (ii) Bramble's employer portions were $3,254 for CPP and $1,327 for El for the month. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
T Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000 Question 1a.Enter the relevant amounts in the T sheet to start the current year, and designate…
. PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firm’s balance sheets which follow: 2011 2012 Cash $2,500 $3,900 Accounts receivable, net 35,000 40,000 Inventory 85,000 122,000 Other current assets 3,400 4,110 Total current assets 125,900 170,010 Property , plan &equipment , net 180,000 230,000 Other assets 15,000 26,000 Total assets $320,900 $426,010 Required Prepare a common-size analysis of the assets section of the firm’s balance sheet for 2011 and 2012.Round all percentage answers to one decimal place
E1-6 Analyzing Revenues and Expenses and Preparing an Income Statement Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January 2014, you find (for January only) this information: Sales, per the cash register tapes, of $150,000, plus one sale on credit (a special situation) of $2,500. With the help of a friend (who majored in accounting), you determine that all of the goods purchased during January cost $90,000 to purchase. You have $20,000 left in inventory. During the month, according to the checkbook, you paid and consumed $37,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $900 monthly utilities for January on the store and fixtures. Required: On the basis of the data given (disregard income taxes), what was the amount of net income for January? Show computations. (Hint: A convenient form to use has the following major side captions: Revenue from Sales,…
E1-6 Analyzing Revenues and Expenses and Preparing an Income Statement Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January 2014, you find (for January only) this information: Sales, per the cash register tapes, of $150,000, plus one sale on credit (a special situation) of $2,500. With the help of a friend (who majored in accounting), you determine that all of the goods purchased during January cost $90,000 to purchase. You have $20,000 left in inventory. During the month, according to the checkbook, you paid and consumed $37,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $900 monthly utilities for January on the store and fixtures. Required: On the basis of the data given (disregard income taxes), what was the amount of net income for January? Show computations. (Hint: A convenient form to use has the following major side captions: Revenue from Sales,…
3. Elitz and Van Aken, CPAS, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2020: 4 Audit Department: Staff Partners Tax Department: Staff Partners Service Small Business Accounting Department: Staff Partners Billable Hours Billable Hours Hourly Rate 22,400 7,900 13,200 5,500 The average billing rate for staff is $160 per hour, and the average billing rate for partners $350 per hour. Prepare a professional fees earned budget for Elitz and Van Aken, CPAS, for the year ending December 31, 2020, using the following column headings and showing the estimated professional fees by type of service rendered and add additional rows in the table as needed: 3,000 600 Total Revenue
PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firms’s balance sheets which follow: 2011 2012 Cash $2,500 $3,900 Accounts receivable, net 35,000 40,000 Inventory 85,000 122,000 Other current assets 3,400 4,110 Total current assets 125,900 170,010 Property, plant & equipment, net 180,000 230,000 Other assets 15,000 26,000 Total assets $320,900 $426,010 Required Prepare a common-size analysis of the assets section of the firms balance sheet for 2011 and 2012.Round all percentage answers to one decimal place
Assume that you are going to start a Business after graduation. Describe 10 transactions that the. business might undertake by using your own idea with the following assumptions: Started business with cash Goods purchase for cash Goods purchased on credit Any asset purchased and paid cash Any asset purchase on credit Sold goods for cash Sold goods on credit Paid any bill Paid salary to staff Cash withdraw from business for personal use Based

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