Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. Equipment$4,000 Office supplies$1,500Salaries expense 3,000 Rental revenue 500 Consulting revenue 12,000 Advertising expense 400Cash 8,000 Prepaid insurance 1,000Utilities expense 200 Accounts payable 1,300Note payable 2,400 Note receivable 2,500Accounts receivable 3,500 Rent expense 2,000Common stock 11,600 Unearned revenue 300 Dividends 2,000 Required:1. Prepare a December income statement for the business.2. Prepare a December statement of retained earnings. The Retained Earnings account balance at December 1 was $0, and the owner invested $11,600 cash in the company on December 2 in exchange for common stock.3. Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. Equipment$4,000 Office supplies$1,500Salaries expense 3,000 Rental revenue 500 Consulting revenue 12,000 Advertising expense 400Cash 8,000 Prepaid insurance 1,000Utilities expense 200 Accounts payable 1,300Note payable 2,400 Note receivable 2,500Accounts receivable 3,500 Rent expense 2,000Common stock 11,600 Unearned revenue 300 Dividends 2,000 Required:1. Prepare a December income statement for the business.2. Prepare a December statement of retained earnings. The Retained Earnings account balance at December 1 was $0, and the owner invested $11,600 cash in the company on December 2 in exchange for common stock.3. Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. Equipment$4,000 Office supplies$1,500Salaries expense 3,000 Rental revenue 500 Consulting revenue 12,000 Advertising expense 400Cash 8,000 Prepaid insurance 1,000Utilities expense 200 Accounts payable 1,300Note payable 2,400 Note receivable 2,500Accounts receivable 3,500 Rent expense 2,000Common stock 11,600 Unearned revenue 300 Dividends 2,000 Required:1. Prepare a December income statement for the business.2. Prepare a December statement of retained earnings . The Retained Earnings account balance at December 1 was $0, and the owner invested $11,600 cash in the company on December 2 in exchange for common stock.3. Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
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