Question

shareholders contributed 60 grand.
land was purchased for 40 grand
I borrowed 18 grand from a bank
I provided services on credit for 16 grand which should be paid back to me in a year.
I paid 11 grand for operating expenses.
I paid a grand cash dividends to shareholders.

place the appropriate amounts in the corresponding T accounts: cash, accounts receivable, land, notes payable, common stock (shareholders equity), service revenue and operating expenses.

what is the revenue amount on the income statement? what is the operating expenses on the income statement? what is the net income on the income statement?

is there a beginning retained earnings balance?
on the statement of retained earnings, what is the net income, dividends and ending retained earnings?

on the balance sheet : what are the cash assets, account receivable assets and land asset? what is the total in assets? what is the liability amount for notes payable? for equity, what is the amount of common stock? what is the amount of retained earnings? what is the total liability and equity?

Answer 1

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Cash

Accounts receivable

Land

Debit

Credit

Debit

Credit

Debit

Credit

Common Stock

$         60

Operating Expense

$         11

Service

$         16

Cash

$         40

Note Payable

$         18

Dividend

$           1

Land

$         40

Ending Balance

$         26

Ending Balance

$         16

Ending Balance

$         40

Note Payable

Common Stock

Service Revenue

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$         18

Cash

$         60

Retained earning

$         16

Accounts Receivable

$         16

Ending Balance

$         18

Ending Balance

$         60

Ending Balance

$          -

Operating Expense

Retained Earning

Debit

Credit

Debit

Credit

Cash

$         11

Retained earning

$         11

Dividend

$           1

Service Revenue

$         16

Operating Expense

$         11

Ending Balance

$          -

Ending Balance

$           4

Revenue account

$                         16

Operating Expense

$                         11

Net Income

$                            5

Beginning Retained earning

$                          -

Add: Net Income

$                            5

Less: Dividend

$                          -1

Ending Retained earning

$                            4

Cash

$                         26

Accounts Receivable

$                         16

Land

$                         40

Total Assets

$                         82

Notes Payable

$                         18

Common Stock

$                         60

Retained Earning

$                            4

Total Liability and Equity

$                         82