In: Accounting
Required: Prepare the journal entries to record these transactions. How much cash did Professor Quark have at the end of June?
Required: Prepare a balance sheet and income statement for this business at the end of May.
ACCOUNT BALANCE
Accounts Payable 4,200
Accounts Receivable 8,480
Advertising expense 420
Capital (Ed Connor) at 08/31/04 56,000
Cash 35,460
Entertainment Expense 600
Equipment 15,700
Installation Revenue 15,600
Miscellaneous Revenue 800
Photocopying Expense 150
Rent Expense 1,300
Repair Revenue 8,650
Supplies 8,400
Truck 8,500
Unearned Revenue 760
1. C |
2. C |
3. A |
4. C |
5. B |
Accounting has a mathematical equation showing the double effect of every transaction and it is as follows: -
Accounting Equation
Assets = Liabilities + Equity
Equity = Assets - Liabilities
Liabilities = Assets - Equity
The above relation helps to determine the desired results
Liabilities 20000
Equity 80000 Totals
Equity +2000
Liabilities -12000 Decrease
Equity +4000
Liabilities +10000 Increase
Increase in Assets(Equipment)
Increase in Liabilities
Amount to be collected is considered as income even if it is not yet received and hence added to equity
Increase in Accounts Receivable
Increase in equity
*Please ask multiple questions separately*