Chapter 2, Problem 2DIE

Your Client, Ashley Mason, is an artist who specializes in henna tattoos. Four years ago, she entered into a five-year contract to rent a kiosk inside the local mall to sell henna tattoos to customers. She called the business “Ashley’s Arm Brands” and hired two other local artists to assist in the work. She opened a separate bank account to keep track of the business cash, and she tracked all expenses and income using a detailed spreadsheet. She is not incorporated. In the first year, the business did fairly well, but then revenues and customer interest declined. Another local artist opened a competing henna studio at a nearby location that seemed to get more foot traffic and was able to bring in celebrity artists to complete work. Ashley increased her marketing and advertising, including creating both a webpage and a Facebook page, offered discounts and contests, and created deals with other kiosks to increase business. Ashley works at the mall kiosk almost 40 hours a week. She is…

Joey Juno began a web-based computer sales and service company on June 1, 20X8, called Juno's Toys. Joey has made a few decisions regarding the accounting system; all prepayments and unearned revenues will be recorded as assets and liabilities and the company will use a periodic inventory system. Juno's Toys completed these transactions during November of the current year: Joey invested $12,000 cash along with $9,000 of used computer equipment into his new business. Purchased 8 months of insurance for $1,200 cash; the insurance is effective immediately. Hired a computer technician, named Barney to be paid every two weeks. $23,000 of merchandise was purchased from Eastman Store on account terms 1/10, n30. Freight was paid in amount of $200 for above purchase. Bought $400 of office supplies on account. Sold merchandise to John Smith that cost $3,300 for $3,800. Mr. Smith paid $500 cash and put the rest on account, with term 1/15, n30. Bought office furniture for $9,000. Paid $1,000 cash…

Financial Accounting Project:1. The owner, Josef Miguel, invested Php250,000 cash in the business. He registered the business with the following expenditures:a. Mayor’s permit, Php5,000b. DTI registration, Php600c. BIR/TIN Registration, Php500d. Transportation during the processing of registration, Php3002. After the business permit was taken, he started the business with the following cash expenditures:a. Paid in cash rent of office space, Php24,000b. Paid insurance, Php60,000c. Purchased supplies, Php3,000d. Purchased of second-hand delivery truck, Php150,0003. Total delivery income for the month, Php300,000 of which 40% are on account.4. Received cash advance amounting to Php180,000 for delivery services to be rendered in 18 months.5. Billed customers for services rendered, Php45,000.6. Expenses paid / incurred during the month were as follows:a. Salaries, Php40,000b. Utilities, Php2,000c. Transportation, Php3,000d. Telephone, Php6,0007. Collected 50% of transaction no. 38. Withdrew…