(1)
Introduction: The financial statements of a company include a
To prepare:
(2)
Introduction: The financial statements of a company include a balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company.
To prepare: Income statement, statement of owner’s equity, and balance sheet.
(3)
Introduction: The financial statements of a company include balance sheets, income statements, and cash flow statements. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company.
To prepare: The cash flow statement.
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- Harris Welding Company had the following transactions for June. June 1 Tyler Harris invested $9550 cash in a small welding business June 2 Bought used welding equipment on account for $3050 June 5 Hired an employee to start work on July 15. Agreed on a salary of $3390 per month June 17 Billed P. White $2230 for welding work done. June 27 Received $1220 cash from P.White for work billed on June 17. For each transaction, indicate the basic type of account debited/credited, specific account debited/credited on the account and the amountarrow_forwardHarris Welding Company had the following transactions for June. June 1 Tyler Harris invested $9550 cash in a small welding business June 2 Bought used welding equipment on account for $3050 June 5 Hired an employee to start work on July 15. Agreed on a salary of $3390 per month June 17 Billed P. White $2230 for welding work done. June 27 Received $1220 cash from P.White for work billed on June 17. Journalize the transactionsarrow_forwardSanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…arrow_forward
- Sanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…arrow_forwardSanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…arrow_forwardT Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000 Question 1a.Enter the relevant amounts in the T sheet to start the current year, and designate…arrow_forward
- George Smyth opened a computer repair business on Apr. 1, 20--. During the first month of operations, the firm had the following transactions. Apr. 1 George Smyth invested $30,000 cash in the business. 2 Paid rent for April, $2,100. 8 Bought equipment for $12,000 and issued a check for $3,000 as a down payment. 12 Performed services for $3,200 in cash, and $1,200 on credit. 19 Paid electric bill, $225. 25 Received $900 on account from credit customers. Required: Record these transactions on page 1 of the general journal. Omit explanations. If an amount box does not require, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 Apr. 1 Cash 101 fill in the blank f9fb70ff9f95044_2 fill in the blank f9fb70ff9f95044_3 1 2 George Smyth, Capital 311 fill in the blank f9fb70ff9f95044_5 fill in the blank f9fb70ff9f95044_6 2 3 Apr. 2 Rent Expense 521 fill in the blank f9fb70ff9f95044_8 fill in the blank f9fb70ff9f95044_9 3 4 Cash 101…arrow_forwardMing Chen started a business and had the following transactions in June. a. Owner invested $61,000 cash in the company along with $25,000 of equipment. b. The company paid $1,900 cash for rent of office space for the month. c. The company purchased $15,000 of additional equipment on credit (payment due within 30 days). d. The company completed work for a client and immediately collected $2,100 cash. b. e. The company completed work for a client and sent a bill for $7,000 to be received within 30 days. f. The company purchased additional equipment for $5,500 cash. Required: Complete the table using additions and subtractions to show the dollar effects of the transactions on individual items of the accounting equation. Note: Enter decreases to account balances with a minus sign. g. The company paid an assistant $3,000 cash as wages for the month. h. The company collected $5,200 cash as a partial payment for the amount owed by the client in transaction e. 1. The company paid $15,000 cash…arrow_forwardYi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $18,000 cash. After those seven transactions, the ledger included the following accounts with normal balances. Prepare a trial balance for this business as of the end of May. The following seven transactions produced the account balances shown above. a. Y. Min invested $18,000 cash in the business. b. Paid $7,540 cash for monthly rent expense for May. c. Paid $4,600 cash in advance for the annual insurance premium beginning the next period. d. Purchased office supplies for $890 cash. e. Purchased $12,900 of office equipment on credit (with accounts payable). f. Received $36,000 cash for engineering services provided in May. g. Y. Min withdrew $3,370 cash for personal use. Prepare a Cash T-account, enter the cash effects (if any) of each transaction, and compute the ending Cash balance. Code each entry in the T-account with one…arrow_forward
- Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $18,000. March 5 Obtain $8,400 loan from the bank by signing a note. March 10 Purchase construction equipment for $22,000 cash. March 15 Purchase advertising for the current month for $1,100 cash. March 22 Provide construction services for $17,400 on account. March 27 Receive $12,400 cash on account from March 22 services. March 28 Pay salaries for the current month of $5,400. Required: Analyze each transaction and show the effects of each on the accounting equation. Note: Decreases to account classifications should be indicated by a minus sign. Do not give answer in imagearrow_forwardMing Chen started a business and had the following transactions in June. Owner invested $68,000 cash in the company along with $29,000 of equipment in exchange for its common stock. The company paid $2,100 cash for rent of office space for the month. The company purchased $10,000 of additional equipment on credit (payment due within 30 days). The company completed work for a client and immediately collected $1,600 cash. The company completed work for a client and sent a bill for $9,000 to be received within 30 days. The company purchased additional equipment for $6,100 cash. The company paid an assistant $3,000 cash as wages for the month. The company collected $5,300 cash as a partial payment for the amount owed by the client in transaction e. The company paid $10,000 cash to settle the liability created in transaction c. The company paid $1,100 cash in dividends to the owner (sole shareholder). Required:Complete the table using additions and subtractions to show the dollar effects…arrow_forwardPrepare journal entries for the transactions for Gordon Co for the month of July 2021. 7/2 Barry Gordon invested 30,000 to start the business Paid 1,100 for the current month's renf Purchased 1,500 of supplies on account. Purchased advertising from Evening Journal at a cost of 1,250 payable in 15 days. 7/15 Provided 2,000 of service to H Co. collected 500 cash and balance on account 7/3 7/5 7/9 7/19 Paid for advertising purchased from the Evening Journal on 7/9 7/21 Purchased equipment from T Co. for 6,500, paid cash 1,500 and balance on account 7/24 Hired assistant at a salary of 750 per week 7/28 Received 1,000 cash advance for service to be provided in August 7/29 Received utility bill for 225 7/30 Collected accounts receivable from H Co. Gordon withdrew 2,000 cash for personal use Paid assistant 750 salary for the week. 7/31 7/31arrow_forward
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