Question
In: Accounting
Ali Omar opened a yard care business, Omar’s Yard Care, on March 31, 2020. The following...
Ali Omar opened a yard care business, Omar’s Yard Care, on March 31, 2020. The following activities occurred during his first month of operations: Ali Omar invested $5,600 cash and $21,500 of equipment to start his business, Omar’s Yard Care. Purchased various supplies on account; $2,900. Bought supplies on credit; $1,080. Omar signed a $5,300 contract to do yard work beginning in May. Did work for a client on account; $680. Performed services for a customer on credit; $1,250. Paid $330 for the supplies purchased in (c). Paid $380 for advertising online. Collected the amount owed from the customer in (f). Using the format, show the effects of the activities listed in (a) through (i). For each transaction that affects equity, select the appropriate description beside it (owner investment, owner withdrawal, revenue, expenses provided in the dropdown). (Enter all amounts as positive values. If the transaction/event does not affect equity or do not require a journal entry, select "No Affect on Equity" in the 'Explanation of equity transaction' field.)
Solutions
Expert Solution
| Assets | = Liabilities | + Equity | |||||||||||
| Cash | Account Receivable | Supplies | Equipments | Accounts Payable | All, Capital | Explanations | |||||||
| a. | + | $ 5,600.00 | + | $ 21,500.00 | + | $ 27,100.00 | Equity capital increases | ||||||
| b. | + | $ 2,900.00 | + | $ 2,900.00 | No effect on equity | ||||||||
| c. | + | $ 1,080.00 | + | $ 1,080.00 | No effect on equity | ||||||||
| d. | $ - | $ - | $ - | $ - | $ - | $ - | No effect on equity | ||||||
| e. | + | $ 680.00 | + | $ 680.00 | Retained earnings (Service Revenue ) increases | ||||||||
| f. | + | $ 1,250.00 | + | $ 1,250.00 | Retained earnings (Service Revenue ) increases | ||||||||
| g. | - | $ 330.00 | - | $ 330.00 | No effect on equity | ||||||||
| h. | - | $ 380.00 | - | $ 380.00 | Retained earnings (Advertising Expense ) decreases | ||||||||
| i. | + | $ 1,250.00 | - | $ 1,250.00 | No effect on equity | ||||||||
| Totals | + | $ 6,140.00 | + | $ 680.00 | + | $ 3,980.00 | + | $ 21,500.00 | + | $ 3,650.00 | + | $ 28,650.00 | |
| +32300 | +32300 |
ekkarill92 answered 2 years agoRelated Solutions
Ali Omar opened a yard care business, Omar’s Yard Care, on March 31, 2020. The following...
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Purchased various supplies on account; $1,600.
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Omar signed a $4,000 contract to do yard work beginning in
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3.
EASTDALE
INDUSTRIES
INC.
STATEMENT OF
INCOME
FOR THE YEAR ENDED
MARCH 31, 2020
2020
2019
Sales
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Cost of goods
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Gross profit 459,900 315,000
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Depreciation
29,520
24,000
Office
supplies
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1,600
Salaries and
benefits
112,850 102,500
Rent
18,000
18,000
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27,192
20,200
189,762166,300
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income
270,138 148,700
Income tax
expense
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Net income$
210,708$
115,986
Additional
information:
Unit sales for 2020
and 2019 were 8,760 and 6,000 units, respectively.
Required:
5a)
For each cost in
the above income statement,...
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