Question

In: Accounting

Dec.Dec. 1 CosmoCosmo contributed $ 20 comma 000$20,000 cash in exchange for capital. 2 Received $...

Dec.Dec.

1

CosmoCosmo

contributed

$ 20 comma 000$20,000

cash in exchange for capital.

2

Received

$ 2 comma 600$2,600

cash from customers for services performed.

5

Paid

$ 250$250

cash for office supplies.

9

Performed services for a customer and billed the customer for services​ rendered,

$ 2 comma 500$2,500.

10

Received

$ 700$700

invoice for utilities due in two weeks.

15

Paid for advertising in the local​ paper,

$ 475$475.

20

Paid utility invoice received on

Dec.Dec.

10.

25

Collected cash in full from customer billed on

Dec.Dec.

9.

28

Paid rent for the​ month,

$ 1 comma 900$1,900.

28

Paid

$ 1 comma 150$1,150

to assistant for wages.

30

Received

$ 2 comma 000$2,000

cash from customers for services performed.

31

TimminsTimmins

withdrew

$ 2 comma 500$2,500.

CosmoCosmo

TimminsTimmins

started a new​ business,

TimminsTimmins

​Gymnastics, and completed the following transactions during

DecemberDecember​:

LOADING...

​(Click the icon to view the​ transactions.)                                 Analyze the effects of the transactions on the accounting equation of

TimminsTimmins

Gymnastics.Analyze the events​ chronologically, one transaction at a​ time, beginning with the transaction on the 1st. For each transaction that follows the transaction on the​ 1st, calculate the balance in each account after analyzing its effect on the accounting equation. Enter each transaction from the 28th on separate lines and in the same order as presented in the problem statement. ​(Complete only the necessary answer boxes for your transaction lines.​ [Do not enter any zeros for your transaction​lines.] Carry down all balances to the​ "Bal." line, including zero balance​ accounts, entering a​ "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations​ used: A/P​ = Accounts​ Payable; A/R​ = Accounts​ Receivable; Adv.​ = Advertising; Cap.​ =

TimminsTimmins​,

​Capital; Exp.​ = Expense; Liab.​ = Liabilities; Off. Sup.​ = Office​ Supplies; Sal.​ = Salaries; Serv. Rev.​ = Service​ Revenue; Util.​ = Utility; Withdr.​ =

TimminsTimmins​,

​Withdrawals.)

ASSETS

=

LIAB.

+

EQUITY

Cash

+

A/R

+

Off.

=

A/P

+

Cap.

-

Withdr.

+

Serv.

-

Rent

-

Util.

-

Sal.

-

Adv.

Sup.

Rev.

Exp.

Exp.

Exp.

Exp.

12/1

+

+

=

+

-

+

-

-

-

-

12/2

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/5

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/9

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/10

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/15

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/20

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/25

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/28

+

+

=

+

-

+

-

-

-

-

12/28

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/30

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

12/31

+

+

=

+

-

+

-

-

-

-

Bal.

+

+

=

+

-

+

-

-

-

-

Enter any number in the edit fields and then continue to the next question.

Solutions

Expert Solution

Solution:

Date Assets = Liabilities Equity
Cash + A/R + Office Supplies = Accounts payable + Capital - Withdrawl + Service revenue - Rent Expense - Utility Expense - Salary Expense - Advertisement Expense
1-Dec $20,000.00 + + = + $20,000.00 - + - - - -
2-Dec $2,000.00 + + = + - + $2,000.00 - - - -
Bal. $22,000.00 + $0.00 + $0.00 = $0.00 + $20,000.00 - $0.00 + $2,000.00 - $0.00 - $0.00 - $0.00 - $0.00
5-Dec -$250.00 + + $250.00 = + - + - - - -
Bal. $21,750.00 + $0.00 + $250.00 = $0.00 + $20,000.00 - $0.00 + $2,000.00 - $0.00 - $0.00 - $0.00 - $0.00
9-Dec + $2,500.00 + = + - + $2,500.00 - - - -
Bal. $21,750.00 + $2,500.00 + $250.00 = $0.00 + $20,000.00 - $0.00 + $4,500.00 - $0.00 - $0.00 - $0.00 - $0.00
10-Dec + + = $700.00 + - + - - $700.00 - -
Bal. $21,750.00 + $2,500.00 + $250.00 = $700.00 + $20,000.00 - $0.00 + $4,500.00 - $0.00 - $700.00 - $0.00 - $0.00
15-Dec -$475.00 + + = + - + - - - - $475.00
Bal. $21,275.00 + $2,500.00 + $250.00 = $700.00 + $20,000.00 - $0.00 + $4,500.00 - $0.00 - $700.00 - $0.00 - $475.00
20-Dec -$700.00 + + = -$700.00 + - + - - - -
Bal. $20,575.00 + $2,500.00 + $250.00 = $0.00 + $20,000.00 - $0.00 + $4,500.00 - $0.00 - $700.00 - $0.00 - $475.00
25-Dec $2,500.00 + -$2,500.00 + = + - + - - - -
Bal. $23,075.00 + $0.00 + $250.00 = $0.00 + $20,000.00 - $0.00 + $4,500.00 - $0.00 - $700.00 - $0.00 - $475.00
28-Dec -$1,900.00 + + = + - + - $1,900.00 - - -
28-Dec -$1,150.00 + + = + - + - - - $1,150.00 -
Bal. $20,025.00 + $0.00 + $250.00 = $0.00 + $20,000.00 - $0.00 + $4,500.00 - $1,900.00 - $700.00 - $1,150.00 - $475.00
30-Dec $2,000.00 + + = + - + $2,000.00 - - - -
Bal. $22,025.00 + $0.00 + $250.00 = $0.00 + $20,000.00 - $0.00 + $6,500.00 - $1,900.00 - $700.00 - $1,150.00 - $475.00
31-Dec -$2,500.00 + + = + - $2,500.00 + - - - -
Bal. $19,525.00 + $0.00 + $250.00 = $0.00 + $20,000.00 - $2,500.00 + $6,500.00 - $1,900.00 - $700.00 - $1,150.00 - $475.00

ekkarill92 answered 1 year ago
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