Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 7BPSB
Problem 2-7B Preparing an income statement, statement of owner's equity, and
Victoria Rivera owns and manages a consulting firm called Prisek: which began operations on July 1. On July 31. the company's records show the following selected accounts and amounts for the month of July.
| Equipment | $ 12,000 | .. $10,500 | |
| Salaries expense | 9,000 | V. Rivera, Withdrawals... | 6,000 |
| Consulting revenue | 36,000 | Office supplies | 4,500 |
| GiS'i | 24,000 | Rental revenue......... | lr500 |
| Utilities expense | 600 | Advertising expense | lp200 |
| Note payable | 7,200 | Prepaid insurance....... | 3.000 |
Accounts payable....$3,900
Note receivable......7.500
Rent expense........6,000
Unearned revenue...900
Required
- Prepare a July income statement for the business.
- Prepare a July statement of owner's equity. The owner's capital account balance at July 1 was SO. and the owner invested $34:800 cash in the company on July 2.
- Prepare a July 31 balance sheet. Hint: Use the owner's capital account balance calculated in part 2.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Parts wriiten Subparts to be solve are the ones to be solved
Question
Requirement 1For each of the following transactions make the required entries in the General Journal:(See the General Ledger tab in the workbook Chapter 03 b - Problem 3-1 Forms for the accounts in OPJ’s accounting system.)Feb 01 Take $4,000 cash out of Big Bank to pay for February’s warehouse rent.Feb 04 Sale of inventory to a customer – selling price $62,000 – cost of inventory sold $16,000 – customer paid cash which was deposited in Big Bank.Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned.Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000 – customer will pay in the future.Feb 18 Sale of inventory to a customer – selling price $110,000 – cost of inventory sold $28,000 – customer pays $40,000 cash which is deposited in Little Bank – customer will pay for the remaining amount of the sale in 30 days.Feb 22 Purchase additional…
fari File Edit View History Bookmarks Window Help
Click here to access eBook for WarrenJones Corporate Financi...
:
V
Chapter 1: Introduction to Accounting and Business
L
CENGAGE MINDTAP
Q
2
>
2
W
S
X
2
BE 1-4
BE
1-4 Income Statement
Obj. 5
The revenues and expenses of A-One Travel Service for the year ended August 31, 20Y6, follow:
Obj. 5
3
Fees earned
Office expense
Miscellaneous expense
Wages expense
Prepare an income statement for the year ended August 31, 20Y6.
BE 1-5
BE 1-5 Statement of Stockholders' Equity
20
E
D
F3
C
888
R
F
%
5
Ang.cengage.com
V
MindTap - Cengage Learning
T
G
$1,150,000
150,000
45,000
640,000
O ♫
B
Y
&
7
H
A
F7
U
N
* CO
8
J
F8
M
DO
K
W
AA
F10
a 8
Document.docx
Q Search thi
8
Journal Entires for transaction June 20
Repaired a damaged steering mechanism for customer Darren O'Malley and also installed a new Hickster Pipe. Mr. O'Malley was billed for 3.25 hours of labor, accessories totaling $430.00, plus sales tax. He paid with a bank credit card.
Merchandise listed on the sales invoice:
Stock Number....................Item.................Quantity.............Net Cost Per Unit
BM102 .......................HICKSTER PIPE............1...........................$215.00
Sales Tax 8%
Labor cost $65/hour
Chapter 2 Solutions
Fundamental Accounting Principles
Ch. 2 - Prob. 1DQCh. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQCh. 2 - What kinds of transactions can be recorded in a...Ch. 2 - Are debits or credits typically listed first in...Ch. 2 - Should a transaction be recorded first in a...Ch. 2 - If assets are valuable resources asset accounts...Ch. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Identify the four financial statements of a...
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Identifying source documents C1 Identify the items...Ch. 2 - Identifying financial statement accounts C2...Ch. 2 - Reading a chart of accounts C3 A chart of accounts...Ch. 2 - Identifying normal balance C4 Identify the normal...Ch. 2 - QS 2–5
Linking debit or credit with normal...Ch. 2 - Prob. 6QSCh. 2 - Analyzing debit or credit by account A1 Identify...Ch. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Preparing journal entries P1 Prepare general...Ch. 2 - Preparing an income statement P3 Liu Zhang...Ch. 2 - Preparing a statement of owner's equity P3 Use the...Ch. 2 - Prob. 14QSCh. 2 - Prob. 15QSCh. 2 - Exercise 21 Steps in analyzing and recording...Ch. 2 - Prob. 2ECh. 2 - Exercise 2-3 Identifying a ledger and chart of...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Exercise 28 Preparing Taccounts (ledger) and a...Ch. 2 - Prob. 9ECh. 2 - Exercise 2-10 Preparing a trial balance P2 After...Ch. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Exercise 2-13 Entering transactions into...Ch. 2 - Exercise 2-14 Preparing general journal entries P1...Ch. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 21ECh. 2 - Exercise 2-22 Calculating and interpreting the...Ch. 2 - Exercise 2-23 Preparing journal entries P1 Prepare...Ch. 2 - Prob. 1APSACh. 2 - Prob. 2APSACh. 2 - Prob. 3APSACh. 2 - Prob. 4APSACh. 2 - Prob. 6APSACh. 2 - Prob. 7APSACh. 2 - Prob. 1BPSBCh. 2 - Prob. 2BPSBCh. 2 - Prob. 3BPSBCh. 2 - Prob. 4BPSBCh. 2 - Problem 2-5B Computing net income from equity...Ch. 2 - Prob. 6BPSBCh. 2 - Problem 2-7B Preparing an income statement,...Ch. 2 - SP 2 On October 1, 2019, Santana Rey launched a...Ch. 2 - Using transactions from the following assignments...Ch. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Prob. 8GLPCh. 2 - Refer to Apple's financial statements in Appendix...Ch. 2 - Prob. 2AACh. 2 - Key comparative figures for Apple, Google, and...Ch. 2 - Prob. 1BTNCh. 2 - Prob. 2BTNCh. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTNCh. 2 - Prob. 7BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- EMPLOYEE EARNINGS RECORD Marys Luxury Travel in Problem 8-9A keeps employee earnings records. Andrew Cole, employee number 62, is employed as a manager in the ticket sales department. He was born on May 8, 1986, and was hired on June 1 of last year. His Social Security number is 544-67-1283. He lives at 28 Quarry Drive, Vernon, CT, 06066. REQUIRED For the week ended March 22, complete an employee earnings record for Andrew Cole. (Insert earnings data only for the week of March 22.)arrow_forwardSession Timed Out 9 Chapter 12: Payroll Accounting A ezto.mheducation.com/hm.tpx E Apps O Harford County Pu. start.hcps.org aSummary- Quizizz a Summary - Quizizz 9 Geometry Unit 3 St.. I connect Accounting & Finance: B4 JACCOUNTING Chapter 12: Payroll Accounting Question 1 (of 12) 1. The sales clerks of Teresa's Treasures are paid a sales they make. Find the amount of commission and gross earnings for these employees. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) lary of $225 per ek plus a commission 8% on all Sales for the Week Name Commission Gross Earnings S 2,392.50 $ 3,480.75 Tina Valendez Jan Yarrow 02021 McGraw-Hill Education. ll rights P Search for anything DELLarrow_forwardRecording Journal Entries Prepare journal entries for each of the following transactions of Alma Inc. a. Issues stock to shareholders in exchange for $30,000 cash. b. Purchases $9,000 of equipment by signing a note payable. c. Performs $7,500 of services for customers on account. d. Pays $3,000 cash for legal services. Ref. a. b. C d. General Journal Account Name Save Answers + 00 수 0000 # + + ÷ 수 Dr. 0 OOOooooo 0 0 0 0 0 0 Cr. OOOOOOOO 0 0 0 10 0 0arrow_forward
- Instructions Gillooly Co. purchased $162,000 of 4%, 20-year Lumpkin County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $30,000 of the Lumpkin County bonds at 99 plus $100 accrued interest less a $110 brokerage commission. Required: Journalize the entries to record the following: a. The purchase of the bonds on May 11 plus 40 days of accrued interest." b. Semiannual interest on October 1." c. Sale of the bonds on October 31.* d. Adjusting entry for accrued interest on December 31, Year 1." e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20." *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry…arrow_forwardWorking Papers 9-1 1.9-1 WORK TOGETHER, p. 248 You have been asked to start a new acconts payable ledger page for Warren River Supply, account number 240, with a batance on Oct 1 of the CUrent year of $1,489.50 and a new accounts payable ledger page for Zodiac Industries, account number 250, with a balance for Oct. 1 of the current year of $2,491.80. In the accoLunts payable ledger form below, numbers are used to identifry tacations to which items are entered. In the table that follows, select the value to be entered at each location on an accounts payable ledger form. ACCOUNTS PAYABLE LEDGER Account: 1 Account No. 2 DATE ITEM POST. DEBIT CREDIT CREDIT BALANCE REF. 5 6 7 8. 1 4. 4. Warren River Supply Zodiac Industries 1. Oct. 1 v 1 2. 2. 3. Oct 1 3. 4. 4. 15. 5. 1 6. 6. 17. 4. 7. 8. DELDarrow_forwardIdentifying effects of transactions using accounting equation—Revenues and Expenses LO P1 The following transactions were completed by the company: The company completed consulting work for a client and immediately collected $7,100 cash. The company completed commission work for a client and sent a bill for $5,600 to be received within 30 days. The company paid an assistant $2,200 cash as wages for the period. The company collected $2,800 cash as a partial payment for the amount owed by the client in transaction b. The company paid $1,020 cash for this period's cleaning services.arrow_forward
- A ezto.mheducation.com M Question 18 - Midterm 1- Connect b Accounting Question | bartleby Bb Announcements - 2021 Spring Term (1) Principles of .. Midterm 1 Saved Help Save & Exit Submit 18 Torrid Romance Publishers has total receivables of $2,800, which represents 20 days' sales. Total assets are $73,000. The firm's operating profit margin is 5.9%. Find the firm's ROA and asset turnover ratio. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.) X 01:45:00 Asset turnover ratio ROA % Mc Graw Hill Educationarrow_forwardRead through the transactions impacting JumpStart Co. and answer the question below: On November 10, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600 in cash and put the balance on account. On November 20, JumpStart Co. clients paid an additional $900 on their accounts due. Document the journal entries that reflect the November 10 and 20th transactions. Edit View Insert Format Tools Table 12pt v Paragraph v BIUAY O wordsarrow_forwardaccount_circle Business Accounting Q&A Library Case 1: Real Estate Agency Oct. 1 Ms. Lea begins business as a real estate agent with a cash investment of P1,500,000. 2 Paid rent, P35,000, on office space. 3 Purchased office equipment for P140,000 on account. 6 Sold a house and lot for Mr. Smith; billed Mr. Smith P220,000 for realty services performed. 27 Paid P55,000 on the balance related to the transaction of October 3. 30 Received bill for October utilities, P6,500 (not paid at this time). Requirement: Journalize the transactions. Explanations can be omitted. Case 1: Real Estate Agency Oct. 1 Ms. Lea begins business as a real estate agent with a cash investment of P1,500,000. 2 Paid rent, P35,000, on office space. 3 Purchased office equipment for P140,000 on account. 6 Sold a house and lot for Mr. Smith; billed Mr. Smith P220,000 for realty services performed. 27 Paid P55,000 on the balance related to the transaction of October 3. 30 Received bill for October utilities, P6,500…arrow_forward
- FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was 38,200. REQUIRED Prepare the following financial ratios: (a)Working capital (b)Current ratio (c)Quick ratio (d)Return on owners equity (e)Accounts receivable turnover and the average number of days required to collect receivables (f)Inventory turnover and the average number of days required to sell inventoryarrow_forwardRequirement 1 For each of the following transactions make the required entries in the General Journal: (See the General Ledger tab in the workbook Chapter 03 b - Problem 3-1 Forms for the accounts in OPJ’s accounting system.) Feb 01 Take $4,000 cash out of Big Bank to pay for February’s warehouse rent. Feb 04 Sale of inventory to a customer – selling price $62,000 – cost of inventory sold $16,000 – customer paid cash which was deposited in Big Bank. Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned. Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000 – customer will pay in the future. Feb 18 Sale of inventory to a customer – selling price $110,000 – cost of inventory sold $28,000 – customer pays $40,000 cash which is deposited in Little Bank – customer will pay for the remaining amount of the sale in 30 days. Feb 22 Purchase additional inventory – pay $17,000 cash out of Big Bank for the inventory. Feb 27…arrow_forwardChapter 5: #8 Page 115 On October 1, Sancho Dy, Business consultant, Opened Business Solutions Company. Required: a) Prepare your own Chart of Accounts. Start with account no.1 for assets, 11 for plant, property and equipment, 20 for liabilities, 30 for equity, 40 for revenue, and 50 for expenses. b) Record in a two column journal. c) Open the general ledger, post, insert appropriate posting references as each item is posted, foot and extract the balances. d) Prepare a trial balance.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY