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Using the
Ariana Peterson recently opened her own law office, which she operates as a corporation. The name of the new entity is Ariana Peterson, Attorney Peterson experienced the following events during the organizing phase of the new business and its first month of operation, December 2 016. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business.
Dec. 1 | Sold personal investment in Nike stock, which she had owned for several years, receiving $25,000 cash. |
2 | Deposited the $25,000 cash from the sale of the Nike stock in her personal bank account. |
3 | Deposited $65,000 cash in a new business bank account titled Ariana Peterson, Attorney. The business issued common stock to Peterson. |
5 | Paid $400 cash for ink cartridges for the printer. |
7 | Purchased computer for the law office, agreeing to pay the account, $6,800, within three months. |
9 | Received $2,900 cash from customers for services rendered. |
15 | Received bill from The Lawyer for magazine subscription, $300. (Use Miscellaneous Expense account.) |
23 | Finished court hearings on behalf of a client and submitted a bill for legal services, $18,000, on account. |
28 | Paid bill from The Lawyer. |
30 | Paid utilities, $840. |
31 | Received $2,800 cash from clients billed on Dec. 23. |
31 | Cash dividends of $2,500 were paid to stockholders. |
Requirements
1. Analyze the effects of the preceding events on the accounting equation of Ariana Peterson, Attorney. Use a format similar to Exhibit 1-6.
2. Pre pare the following financial statements:
- a. Income statement.
- b. Statement of
retained earnings . - c.
Balance sheet .
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Chapter 1 Solutions
ACC 201/202 MYACCLAB E-TEXT ONLY >I<
- Please help me correct my mistakes. for the T account of 2022 and 2023, the ONLY options for accounts names are blank, bad debt expense, collections, credit sales and write offs Jayco Inc. started its operations in 2022. Its sales during 2022, all on account, totalled $700,000. The company collected $500,000 in cash from customers during the year and wrote off $8,000 in uncollectible accounts. The company set up an allowance for doubtful accounts at December 31, 2022, its fiscal year-end, and determined the account balance to be $14,000. The unadjusted balances of selected accounts at December 31, 2023 are as follows: Accounts receivable $ 300,000 Allowance for doubtful accounts (debit) 10,000 Sales revenue (including 80 percent in sales on account) 800,000 Aging of the accounts receivable on December 31, 2023, resulted in an estimate of $11,000 in potentially uncollectible accounts. Required: 1. Prepare the journal entries to record all the…arrow_forward4 PTSarrow_forwardQuick answer of this accounting questionsarrow_forward
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