EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Shane Sunland began a business, Sunland Company, on January 1, 2021, with an investment of $105,000. The company had the following assets and liabilities on the dates indicated:
December 31
Total Assets
Total Liabilities
2021
$355,000
$200,000
2022
440,000
285,000
2023
535,000
310,000
Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for:
a) 2021, assuming Shane Sunland's drawings were $50,000 for the year.
b) 2022, assuming Shane Sunland's made an additional investment of $51,000 and had no drawings in 2022.
c) 2023, assuming Shane Sunland's made an additional investment of $10,000 and his drawings were $40,000 for the year.
Please explain for all questions, thank you.
Apex Systems Co. Offers it's services to residents in the Seattle area. Selected accounts from the Ledger of Apex Systems Co. For the fiscal year ended in December 31,2019, are as follows:
Bart Nesbit, Capital
Dec.31 78,000 Jan. 1 (2019) 1,334,000
Dec.31 347,000
Bart Nesbit , Drawing
Mar.31 19,500 Dec.31 78,000
June 30 19,500
Sept. 30 19,500
Dec.31 19,500
Required:
Repair a statement of owners equity for the year. No additional investments were made during the year. if a net loss has been incurred or there has been a decrease in owner's equity, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading.
TA services were formed on May 1, 2020. The following transactions took place during the first month.
May 1 Mr. Tarek Ahmed invested $80,000 in the business, as its sole owner.May 2 Hired two employees, who will be paid a salary $1,000 per month.May 3 Paid $20000 in advance for rent of a warehouse.May 4 Purchased furniture & equipment costing $30,000. $10,000 paid in cash and $20,000 payable in next 6 months.May 5 Paid $22,000 for 1-year insurance policy.May 7 Purchase basic office supplies for $500 on account.May 8 $1,500 received in advance for which services to be performed in June.May 10 Revenue earned in cash $20000 and on account $10000.May 12 Payment to creditor for May 7 transactions.May 16 Received from debtors for May 10 transaction.May 22 Withdraw by owner $ 700.May 27 Purchase of pick-up van $ 5000 on account.
Instructions:(a) Pass the Journal Entry & Post to ledger.(b) Prepare Trial Balance.
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