In: Accounting
On January 1, Year 1, the general ledger of a company includes the following account balances:
Accounts | Debit | Credit | |||||
Cash | $ | 24,400 | |||||
Accounts Receivable | 5,800 | ||||||
Supplies | 3,700 | ||||||
Land | 56,000 | ||||||
Accounts Payable | $ | 3,800 | |||||
Common Stock | 71,000 | ||||||
Retained Earnings | 15,100 | ||||||
Totals | $ | 89,900 | $ | 89,900 | |||
During Year 1, the following transactions occur:
January | 2 | Purchase rental space for one year in advance, $7,800 ($650/month). | ||
January | 9 | Purchase additional supplies on account, $4,100. | ||
January | 13 | Provide services to customers on account, $26,100. | ||
January | 17 | Receive cash in advance from customers for services to be provided in the future, $4,300. | ||
January | 20 | Pay cash for salaries, $12,100. | ||
January | 22 | Receive cash on accounts receivable, $24,700. | ||
January | 29 | Pay cash on accounts payable, $4,600. |
5. Prepare a classified balance sheet as of January 31, Year 1.
Answer is not complete.
|
If you find the answer useful please like my answer | |||||
If you find the answer useful please like my answer | |||||
Income Statements | |||||
For the month ended January 31, Year 1 | |||||
Revenues | |||||
Service revenue | 26,100 | ||||
Total Revenue | 26,100 | ||||
Expenses | |||||
Rent Expenses | 650 | ||||
Salaries expenses | 12,100 | ||||
Total Expenses | 12,750 | ||||
Net Income | 13,350 | ||||
Balance Sheet | |||||
January 31, Year 1 | |||||
Assets | Liabilities | ||||
Current Assets | Current Liabilities | ||||
Cash | 28,900 | Accounts Payable | 3,300 | ||
Accounts Receivable | 7,200 | Unearned revenue | 4,300 | ||
Supplies | 7,800 | ||||
Prepaid rent | 7,150 | ||||
Total Current Assets | 51,050 | Total Current Liabilities | 7,600 | ||
Long term assets | Stockholders' equity | ||||
Land | 56,000 | Common Stocks | 71,000 | ||
Retained earning | 28,450 | ||||
Total Stockholders' equity | 99,450 | ||||
Total assets | 107,050 | Total Liability and Stockholders' equity | 107,050 | ||
Cash Accounts | |||||
Particulars | Debit $ | Particulars | Credit $ | ||
Beginning Balance | 24,400 | Prepaid rent | 7,800 | ||
Unearned revenue | 4,300 | Salaries | 12,100 | ||
Accounts Receivable | 24,700 | Accounts Payable | 4,600 | ||
Ending Balance | 28,900 | ||||
Total | 53,400 | Total | 53,400 | - | |