Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees;...

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees; and Operating Expenses. (a) In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number: (1) Stockholders invested $12,500 cash in the business by purchasing common stock. (2) Purchased supplies on account, $6,250. (3) Paid operating expenses, $5,500. (4) Billed clients for fees, $7,440. (5) Received cash from cash clients, $4,700. (6) Paid creditors on account, $1,400. (7) Received $3,100 from clients on account. (8) Paid $1,500 cash dividends. (b) Prepare a trial balance as of June 30 for Potter Pool Services. (c) Assuming that supplies expense (which has not been recorded) amounts to $1,500 for June, determine the following: (1) Net income for the month. (2) Stockholders' equity as of June 30.

Solutions

Expert Solution

Requirement a:

Cash
(1)	$12,500	(3)	$5,500
(5)	$4,700	(6)	$1,400
(7)	$3,100	(8)	$1,500
Bal.	$11,900

Accounts receivable
(4)	$7,440	(7)	$3,100
Bal.	$4,340

Supplies
(2)	$6,250
Bal.	$6,250

Accounts payable
(6)	$1,400	(2)	$6,250
		Bal.	$4,850

Common stock
		(1)	$12,500
		Bal.	$12,500

Dividends
(8)	$1,500
Bal.	$1,500

Professional Fees
		(4)	$7,440
		(5)	$4,700
		Bal.	$12,140

Operating Expenses
(3)	$5,500
Bal.	$5,500

Requirement b:

Trial Balance
Account title	Debit	Credit
Cash	$11,900
Accounts receivable	$4,340
Supplies	$6,250
Accounts payable		$4,850
Common stock		$12,500
Dividends	$1,500
Professional Fees		$12,140
Operating expenses	$5,500
Total	$29,490	$29,490

Requirement c:
1.

Professional Fees		$12,140
Expenses:
Operating expenses	$5,500
Supplies expense	$1,500
Total expenses		$7,000
Net income		$5,140

Common stock	$12,500
Retained earnings	$3,640
[5,140 Net income -1,500 dividends]
Stockholders' equity	$16,140

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Accounts Payable Accounts Receivable Building Cash Equipment Fees Earned Land Owner—Drawing Owner—Equity Rent Revenue Supplies Utilities...

Accounts Payable Accounts Receivable Building Cash Equipment Fees Earned Land Owner—Drawing Owner—Equity Rent Revenue Supplies Utilities Expense Wages Expense If the total of each ACCOUNT is $5,000 what will be the NET INCOME ?

Assets Liabilities and Equity Cash $ 51,000 Accounts Payable $ 23,000 Accounts Receivable 43,000 Common Stock...

Assets Liabilities and Equity Cash $ 51,000 Accounts Payable $ 23,000 Accounts Receivable 43,000 Common Stock 84,000 Land 27,000 Retained Earnings 14,000 Total $ 121,000 Total $ 121,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: Jan. 1 Acquired $46,000 cash from the issue of common stock. Feb. 1 Paid $5,100 cash in advance for a one-year lease for office space. Mar. 1 Paid a $1,900 cash dividend to the stockholders. Apr. 1 Purchased additional land...

Set up following T – Accounts Cash- ? Accounts Receivable- 800,000 Allowance for bad debts- 100,000...

Set up following T – Accounts Cash- ? Accounts Receivable- 800,000 Allowance for bad debts- 100,000 Shoe Inventory-? Supplies- 50,000 Prepaid Insurance- 10,000 Equipment- 1,000,000 Accumulated Depreciation Equipment- 400,000 Auto-100,000 Accumulated Depreciation - Auto- 75,000 Accounts Payable-80,000 Wages payable-? Unearned Revenue- 40,00 note payable- 90,000 JHJ Common Stock- 2,000,000 JHJ Retained Earnings- 1,500,000 JHJ Dividends Shoe Sales Cost of Shoes Sold Rent Expense Supplies Expense Depreciation Expense Journalize the following transactions utilizing WEIGHTED AVERAGE inventory valuation method. Invested additional $200,000...

Accounts payable $18,500 Accounts receivable 8,000 Accumulated depreciation-equipment 4,800 Bonds payable 18,000 Cash 24,000 Common stock...

Accounts payable $18,500 Accounts receivable 8,000 Accumulated depreciation-equipment 4,800 Bonds payable 18,000 Cash 24,000 Common stock 25,000 Cost of goods sold 27,000 Depreciation expense 4,800 Dividends 5,300 Equipment 44,000 Interest expense 2,500 Patents 7,500 Retained earnings, January 1 16,000 Salaries and wages expense 5,200 Sales revenue 50,500 Supplies 4,500 Determine the profitability ratio that tells us for every dollars of sales revenue how much operating profit the firm has generated.And solve for the ratio.

Accounts payable 2,300 Accounts Receivable 1,500 Accumulated depreciation - Equipment 4,000 Cash 2,600 Common Stock 4,800...

Accounts payable 2,300 Accounts Receivable 1,500 Accumulated depreciation - Equipment 4,000 Cash 2,600 Common Stock 4,800 Equipment 7,500 Inventory 400 Land 10,000 Land held as long term investment 8,000 Notes payable (due in 5 Years) 6,000 Patent 2,500 Retained Earnings 1/1 16,000 Short- term investments 1,000 Wages Payable 400 Required: Calculate following amounts. Show all work. Total Current Assets (in order of liquidity) Total property, plant, and equipment Total Assets Total Current liabilities Total Liabilities Total Stockholders equity Prove that...

Journalize the business transactions using these accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital;...

Journalize the business transactions using these accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital; Clay Potter, Drawing; Professional Fees; and Operating Expenses. (a) Journalize following transactions of Potter Pool Services for June, identifying each entry by number: Put them into T-accounts for easier creation of a trial balance (1) Potter invested $12,500 cash in the business. (2) Purchased supplies on account, $6,250. (3) Paid operating expenses, $5,500. (4) Billed clients for fees, $7,440. (5) Received cash from...

accounts payable $10,600 accounts receivable $11,100 accumulated depreciation $24,000 advertising expense $19,600 cash $46,500 common stock...

accounts payable $10,600 accounts receivable $11,100 accumulated depreciation $24,000 advertising expense $19,600 cash $46,500 common stock $30,000 cost of goods sold 355,500 dividends 5,000 depreciation expense 9,000 equipment 175,000 income tax expense 19,875 income tax payable - insurance expense 4,500 interest expense 3,600 interest revenue 2,500 inventory 29,000 notes payable (due in 9 months) 15,000 prepaid insurance 3,625 rent expense 24,000 retained earnings (beg. bal) 91,000 salaries expense -gen/admin 20,000 salaries expense-selling 34,000 sales revenue 605,100 utilities expense 18,000 What...

Cash $6,500 Accumulated Depreciation—Equipment $1,400 Accounts Receivable 3,800 Accounts Payable 2,900 Inventory 1,700 * Common Stock...

Cash $6,500 Accumulated Depreciation—Equipment $1,400 Accounts Receivable 3,800 Accounts Payable 2,900 Inventory 1,700 * Common Stock 22,000 Equipment 20,200 Retained Earnings 5,900 $32,200 $32,200 *(3,400 x $0.50) The following transactions occurred during December. Dec. 3 Purchased 4,500 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,900 units of inventory on account for $0.92 per unit. (Blue sold 3,400 of the $0.50 units and 1,500 of the $0.70.) 7 Granted the December 5 customer $276...

Assume the following: Cash, $100,000; Accounts Receivable, $50,000; Accounts Payable, $50,000; Supplies, $40,000; Equipment, $100,000; Land,...

Assume the following: Cash, $100,000; Accounts Receivable, $50,000; Accounts Payable, $50,000; Supplies, $40,000; Equipment, $100,000; Land, $500,000; Bonds Payable, $1,000,000; Mortgage Payable, $400,000; Inventory, $100,000. Compute both the current and quick ratios. What conclusions can you draw from this data ?

cash collections of accounts receivable will increase and decrease _ 1) accounts payable , accounts...

cash collections of accounts receivable will increase ____ and decrease _____ 1) accounts payable , accounts receivable 2) accounts receivable, accounts payable 3) cash, accounts receivable 4) cast, accounts payable when developring cost functions , which of the following is false 1) the cost funtion must be believable 2) the cost function does not have to be reliable 3) personal observations of cost and activities provide the best evidence of a plausible relationship between a cost and its cost driver...

Subjects