Question

In: Accounting

On June 1 of the current year, Wilson Wood opened Woody's Web Services, Inc. The corporation...

On June 1 of the current year, Wilson Wood opened Woody's Web Services, Inc. The corporation had the following transactions during June.

a. Opened a business checking account and made a deposit, $4,000. In exchange, Wilson was issued 200 shares of $20 par value stock.

b. Paid rent for June for office space and computer equipment, $2,000.

c. Purchased office supplies (stamps, pens, etc.) on account, $680.

d. Received cash for services rendered, $3,500.

e. Paid creditor for office supplies purchased on account, $500.

f. Purchased office supplies for cash, $190.

g. Billed clients for consultations performed on account, $4,400.

h. Paid the monthly internet service bill of $180.

i. Paid the secretary's salary of $2,400.

j. Declared and paid dividends of $500.

k. Received cash from clients previously billed, $1,500.

l. Returned $150 of office supplies purchased in transaction f above. Received a full refund.

REQUIRED

1) You are to record these transactions using a spreadsheet format. Click the Answer tab and enter your name in cell C5. Then click the Worksheet tab and enter your name in cell C1 of the worksheet. There are six formulas needed to complete the worksheet.   Enter the formulas in the appropriate cells. Then enter the increases and decreases resulting from each transaction on the worksheet. For example, the first transaction increases the cash account by $8,000 and also increases the common stock account by $8,000. This transaction has already been recorded on the worksheet. Enter negative numbers with a minus sign (-). The worksheet will automatically total each column as values are entered in that column. When you are finished, check line 27 to make sure that total assets equal total liabilities and equity.

2) It has been determined that the cost of the supplies used during the month was $300. Record the increase or decrease in the appropriate columns on the worksheet. This is Transaction m. Save the completed file as FTRANS2. Print the worksheet. Also print your formulas. Check figure: Ending cash balance (cell B22), $2,020

3) How does Transaction m differ from Transactions a through I? In other words, why is it treated as a special item?

4) Prepare an income statement, a statement of retained earnings, and a balance sheet in good form for Woody's Web Services, Inc for the month of June.

Solutions

Expert Solution

Solution:

Assets = Liabilities + Shareholders Equity
Transaction + Accounts + Office + Equipment Notes + Accounts + Paid - in- + Retained + Revenue - Expenses
Cash Receivables Supplies Payable Payable Capital Earnings
8000 8000
a. 4000 4000
b. -2000 -2000
c. 680 680
d. 3500 3500
e. -500 -500
f. -190 190
g 4400 4400
h. -180 -180
i. -2400 -2400
j. -500 -500
k. 1500 -1500
l 150 -150
Total 11380 2900 720 180 12000 -500 7900

Related Solutions

On June 1 of the current year, Chad Wilson established a business to manage rental property....
On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Opened a business bank account with a deposit of $48,000 from personal funds. Purchased office supplies on account, $2,080. Received cash from fees earned for managing rental property, $5,770. Paid rent on office and equipment for the month, $2,550. Paid creditors on account, $950. Billed customers for fees earned for managing rental property, $4,730. Paid automobile expenses...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Opened a business bank account with a deposit of $26,000 from personal funds. Purchased office supplies on account, $2,390. Received cash from fees earned for managing rental property, $6,690. Paid rent on office and equipment for the month, $2,930. Paid creditors on account, $1,080. Billed customers for fees earned for managing rental property, $5,420. Paid automobile...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Opened a business bank account with a deposit of $41,000 from personal funds. Purchased office supplies on account, $3,000. Received cash from fees earned for managing rental property, $8,320. Paid rent on office and equipment for the month, $3,680. Paid creditors on account, $1,360. Billed customers for fees earned for managing rental property, $6,820. Paid automobile...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Opened a business bank account with a deposit of $30,000 from personal funds. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $10,000. Paid rent on office and equipment for the month, $4,500. Paid creditors on account, $1,250. Billed customers for fees earned for managing rental property, $16,800. Paid automobile...
On June 1 of the current year, Chad Wilson established a business to manage rental property....
On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Opened a business bank account with a deposit of $28,000 from personal...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental...
Transactions On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Opened a business bank account with a deposit of $35,000 from personal funds. Purchased office supplies on account, $2,050. Received cash from fees earned for managing rental property, $5,600. Paid rent on office and equipment for the month, $2,510. Paid creditors on account, $930. Billed customers for fees earned for managing rental property, $4,650. Paid automobile...
Wilson, Inc., has a current stock price of $44.00. For the past year, the company had...
Wilson, Inc., has a current stock price of $44.00. For the past year, the company had net income of $7,000,000, total equity of $21,730,000, sales of $40,500,000, and 5.6 million shares of stock outstanding. a. What are earnings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is...
Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were...
Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were completed: June 1 Issued 5,000 shares of Cleaning Angels common stock for $13,000. Each share has a $1.00 par.        2 Borrowed $7,500 on a 2-year, 8% note payable.        2 Paid $9,000 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,180 for the window equipment).        2 Paid $250...
Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were...
Sylvia Sweet opened Sweet Angels, Inc. on June 1, 2020. During June, the following transactions were completed: June 1 Issued 5,000 shares of Cleaning Angels common stock for $13,000. Each share has a $1.00 par.        2 Borrowed $7,500 on a 2-year, 8% note payable.        2 Paid $9,000 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,180 for the window equipment).        2 Paid $250...
The table below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $68,000 (Transaction 1).
The table below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $68,000 (Transaction 1).Assets=Liab.+Owner's EquityTransactionCashAccts.Rec.Supp.Equip.Accts.Pay.G. Sawyer,CapitalRev.Exp.1+68,000+68,0002− 7,400+7,4003+4,400+4,4004+2,880+2,8805−3,100−3,1006+ 590−5907−1,600−1,6008−370+370Bal56,120+3,810+370+10,280=2,880+66,400+4,400−3,100Prepare the statement of owner's equity for Sawyer Architecture Services for the month ended June 30, 2019.SAWYER ARCHITECTURE SERVICESStatement of Owner's EquityMonth Ended June 30, 20190$0
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT