MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)
5th Edition
ISBN: 9780133877281
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.54CP
Using the
Daniels Consulting began operations and completed the following transactions during December 2016:
| Dec. 2 | Stockholders contributed $20,000 cash in exchange for common stock. |
| 2 | Paid monthly office rent, $2,000. |
| 3 | Paid cash for a computer, $3,600. This equipment is expected to remain in service for five years. |
| 4 | Purchased office furniture on account, $3,000. The furniture should last for five years. |
| 5 | Purchased office supplies on account, $800. |
| 9 | Performed consulting service for a client on account, $2,500. |
| 12 | Paid utilities expenses, $150. |
| 18 | Performed service for a client and received cash of $2, 1 00. |
| 21 | Received $2,400 in advance for client service to be performed in the future. (This increases the Unearned Revenue account, which is a liability. This account will be explained in more detail in Chapter 2.) |
| 21 | Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately. |
| 26 | Paid $200 on account. |
| 28 | Collected $400 on account. |
| 30 | Cash dividends of $1,000 were paid to stockholders. |
Requirements
- 1. Analyze the effects of Daniels Consulting’s transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash;
Accounts Receivable ; Office Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Rent Expense; and Utilities Expense. - 2. Prepare the income statement of Daniels Consulting for the month ended December 31, 2016.
- 3. Prepare the statement of
retained earnings for the month ended December 31, 2016. - 4. Prepare the
balance sheet as of December 31, 2016. - 5. Calculate the return on assets for Daniels Consulting for December, 2016.
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Sage Hill Inc. had the following transactions involving current assets and current liabilities during February 2017.
Feb. 3
Collected accounts receivable of $18,600.
7
Purchased equipment for $33,200 cash.
11
Paid $2,000 for a 1-year insurance policy.
14
Paid accounts payable of $14,600.
18
Declared cash dividends, $8,200.
Additional information:As of February 1, 2017, current assets were $132,700 and current liabilities were $34,600.Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.)
Current ratio as of
Feb. 1, 2017
:1
Feb. 3
:1
Feb. 7
:1
Feb. 11
:1
Feb. 14
:1
Feb. 18
:1
A company's January 1, 2016 balance sheet reported total assets of $150,000 and total liabilities of $60,000.
During January 2016, the company completed the following transactions: (A) paid a note payable using $10,000
cash (no interest was paid); (B) collected a $9,000 accounts receivable; (C) paid a $5,000 accounts payable; and (D)
purchased a truck for $5,000 cash and by signing a $20,000 note payable from a bank. The company's January 31,
2016 balance sheet would report which of the following?
Select one:
a.
Stockholder's
Assets
Liabilities
Equity
$170,000
$100,000
$70,000
b.
Stockholder's
Assets
Liabilities
Equity
$160,000
$75,000
$85,000
С.
Stockholder's
Assets
Liabilities
Equity
$150,000
$60,000
$90,000
d.
Stockholder's
Assets
Liabilities
Equity
$155,000
$65,000
$90,000
The following summarized transactions occurred in December 2020 in Syco Co.
Dec 1
Purchased plant and equipment for $515 in cash.
2
Borrowed $758 from a bank, signing a note payable.
5
Provided $37,522 in service to customers, with $27,250 on account and the rest received in cash.
9
Paid $4,300 cash on accounts payable.
14
Purchased $30,449 inventory on account.
18
Paid salaries, $3,500.
22
Received $37,410 on account paid by customers.
26
Purchased and used fuel of $750 in delivery vehicles during the year (paid for in cash).
31
Incurred $68 in utility usage during the year; paid $55 in cash and owed the rest on account.
Required:
Prepare journal entries for those transactions.
Chapter 1 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)
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