The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Assets Liab. Owner's Equity Accts. Accts. + Supp. +Equip. 3,100+ 5,900 + 33,900- T.Cotton, Capital + 50,900 + Cash Rec. Rev. Balances, May 1 Paid for utilities New balances Sold services for cash New balances Paid a creditor New balances Sold services on credit New balances Paid salaries New balances Pald telephone bill New balances withdrew cash for personal expenses Pay. 15,100 + Exp 7,100+ 870 +870 14,230 + 3,100 5,900 + 33,900 7,100+ 5e,900 + 870 +4,870 + 4,870 4,070 19,100+ E150 16,950+ 7,100 + 2,150 4,950+ 3,100 +5,900+ 33,900. 50,900 + 870 3,100 5,900 33,900- 2,950 6,050 +5,900 + 33,900- 50,900 + 4,870 +2,950 7,820 870 16,950 + 4,950 + 50,900 + 870 8,950 +8,950 9,820 6,050 + 5,900 33,900- 4,950 + 50,900 + 7,820 8,000 + -315 +315 5e,900 + 1,900 49,000+ 4,950+ 7,685+ 1,900 5,785 + 6,050+ 5,900 +33,900- 7,820- 10,135 New balances 6,050 + 5,900 + 33,900- 4,950+ 7,820- 10,135 Required: Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balan chant for M 24 20

The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Assets Liab. Owner's Equity Accts. Accts. + Supp. +Equip. 3,100+ 5,900 + 33,900- T.Cotton, Capital + 50,900 + Cash Rec. Rev. Balances, May 1 Paid for utilities New balances Sold services for cash New balances Paid a creditor New balances Sold services on credit New balances Paid salaries New balances Pald telephone bill New balances withdrew cash for personal expenses Pay. 15,100 + Exp 7,100+ 870 +870 14,230 + 3,100 5,900 + 33,900 7,100+ 5e,900 + 870 +4,870 + 4,870 4,070 19,100+ E150 16,950+ 7,100 + 2,150 4,950+ 3,100 +5,900+ 33,900. 50,900 + 870 3,100 5,900 33,900- 2,950 6,050 +5,900 + 33,900- 50,900 + 4,870 +2,950 7,820 870 16,950 + 4,950 + 50,900 + 870 8,950 +8,950 9,820 6,050 + 5,900 33,900- 4,950 + 50,900 + 7,820 8,000 + -315 +315 5e,900 + 1,900 49,000+ 4,950+ 7,685+ 1,900 5,785 + 6,050+ 5,900 +33,900- 7,820- 10,135 New balances 6,050 + 5,900 + 33,900- 4,950+ 7,820- 10,135 Required: Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balan chant for M 24 20

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 16E: The cash payments and purchases journals for Outdoor Artisan Landscaping follow. The accounts...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8A. All sales are credit sales. The Accounts Receivable balance on January 1,20--, was 3,800. REQUIRED Prepare the following financial ratios: (a) Working capital (b) Current ratio (c) Quick ratio (d) Return on owners equity (e) Accounts receivable turnover and average number of days required to collect receivables (f) Inventory turnover and average number of days required to sell inventory
The cash payments and purchases journals for Outdoor Artisan Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of 2,230, consisting of an amount owed to Augusta Sod Co. Prepare a schedule of the accounts payable creditor balances and determine that the total agrees with the ending balance of the accounts payable controlling account.
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2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=... A ems a < Print Item Transactions and T Accounts The following selected transactions were completed during August of the current year: 1. Billed customers for fees earned, $73,900. 2. Purchased supplies on account, $1,960. 3. Received cash from customers on account, $62,770. 4. Paid creditors on account, $820. a. Journalize these transactions in a two-column journal. If an amount box does not require an entry, leave it blank. (1) Accounts Receivable ✓ 73,900 ✓ Fees Earned (2) Supplies - ✓ Accounts Payable (3) Cash Accounts Receivable (4) Accounts Payable Cash ✓ ✓ 1,960 62,770 820 ✓ ✓ ✓ 73,900 1,960 62,770 820 ✓ b. Post the entries prepared in (a) to the following T accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Fees Earned. To the left of each amount posted in the accounts, select the appropriate number to identify the transactions. FA 00 7:33 PM 8/23/2022…
Hi, for the last part of this question, it says "After you prepare the schedule of accounts payable creditor balances, determine that the total agrees with the ending balance of the Accounts Payable controlling account."Outdoor Artisan LandscapingAccounts Payable(Controlling)Balance, June 1, 20Y1 $Total credits (from purchases journal)Total debits (from cash payments journal)Balance, June 30, 20Y1 $How would I solve this problem? I've attached a picture of the original question
ILLUSTRATIVE EXAMPLE Record the following credit purchases transactions in the Creditors Journal of Topsy Traders for July 2010. Post to the relevant ledger accounts in the General Ledger and the Creditors Ledger. Prepare a creditors list on 31 July 2010. Balances/Totals on 1 July 2010: Creditors control... R23 100 Trading stock Equipment.. Consumable stores R17 500 R35 000 R4 000 Repairs Stationery R8 500 RI 390 List of Creditors on 30 June 2010: R10 000 Longwane Suppliers. Richy Dealers... ww Wholesalers. R12 000 R1 100- Transactions: July 2010 Purchased the following from Richy Dealers and received credit invoice no. XX413: 6. R1 300 trading goods.. • stationery R220 10. Longwane Suppliers delivered the following per credit invoice no. 7865: merchandise R1 500 Office computer R5 400 NB: A trade discount of 10% must be deducted on merchandise supplied and thereafter R200 must be included for carriage on purchases. Office computer is not subject to carriage and trade discount. 16. WW…
6. Your company paid rent of $1,000 for the month with check number 1245. Which journal would the company use to record this? A. sales journal< B. purchases journal« C. cash receipts journal< D. cash disbursements journal E. general journale
NO. : Date : | The following was the trial balance extract from ABC Tradina as at 31 March 2019 Particulars Purchases and sales Inventory on IAprl 2018 Capital Bank overdraft Cash Discount allowad and received Return inwards and outwards Carriage outwards Office expenses Fixturos and fittings Delivery van Account receivables and account payab les Rent and insurance Credit CRm) 41,000 Debit CRM) 22/860 5, 100 8,170 4,300 140 1.440 790 2/180 930 570 450 1/210 2,000 IL, 900 1.790 6,720 Drawings Wages and Sal aries Total 2,850 8,980 611690 61.690 Additional information as at 31 March 2019 : ca) Inventory on 31 March 2019 was (b) Wages and salaries accrued as at 31 March 2019 was Rm210 ; Outstanding office expen ses was RM 30 Cc) Rent and insurance prepaid was km 150 RM 4250 Raquired: (1) Preapare the Statement of Piofit or Loss and Other Comprehensive Income for the year ended 31 March 2019 |(ii) Preapare statement of Financial Position as at 31 March 2019 .
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T. Nix, Capital$ 128,300Cost of goods sold$ 108,900T. Nix, Withdrawals7,000Depreciation expense11,600Sales183,000Salaries expense39,000Sales discounts4,200Miscellaneous expenses5,000Sales returns and allowances5,200 1. Record the entry to close the income statement accounts with credit balances. 2. Record the entry to close the income statement accounts with debit balances. 3. Record the entry to close the Income Summary account. 4. Record the entry to close the Withdrawals account.