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 expenses (including rental charges) for the month, $560, and miscellaneous expenses, $280.

Paid office salaries, $1,770.

Determined that the cost of supplies on hand was $1,210; therefore, the cost of supplies used was $840.

Withdrew cash for personal use, $1,670.

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)

2. Owner's equity is the right of owners to the assets of the business. These rights are by owner's investments and revenues and by owner's withdrawals and expenses.

3. Determine the net income for June.
$

4. June's transactions (a-j) increased or decreased Chad Wilson's capital to?
to $

Transactions

Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March:

Opened a business bank account with a deposit of $50,000 from personal funds.

Purchased supplies on account, $4,000.

Paid creditors on account, $2,300.

Received cash from fees earned on insurance commissions, $13,800.

Paid rent on office and equipment for the month, $5,000.

Paid automobile expenses for month, $1,150, and miscellaneous expenses, $300.

Paid office salaries, $2,500.

Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300.

Billed insurance companies for fees earned for commissions, $12,500.

Withdrew cash for personal use, $3,900.

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)

2. Which of the following increased owner's equity?

3. Determine the net income for March.
$

4. March's transactions increased or decreased Amy Austin's capital to?
to $

Transactions

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:

1. Opened a business bank account with a deposit of $28,000 from personal funds.
2. Purchased office supplies on account, $3,450.
3. Received cash from fees earned for managing rental property, $9,680.
4. Paid rent on office and equipment for the month, $4,230.
5. Paid creditors on account, $1,570.
6. Billed customers for fees earned for managing rental property, $7,840.
7. Paid automobile expenses (including rental charges) for the month, $940, and miscellaneous expenses, $470.
8. Paid office salaries, $2,980.
9. Determined that the cost of supplies on hand was $2,040; therefore, the cost of supplies used was $1,410.
10. Withdrew cash for personal use, $2,820.

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)

2. Owner's equity is the right of owners to the assets of the business. These rights are   by owner's investments and revenues and   by owner's withdrawals and expenses.

3. Determine the net income for June.
$

4. June's transactions (a-j) increased or decreased Chad Wilson's capital to?

WACC.  Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario. He will borrow ​$2,886 from​ Wendy, who will charge him 6​% on the loan. He will also borrow ​$2, 278 from​ Bebe, who will charge him 8​% on the​ loan, and ​$836 from​ Shelly, who will charge him 14​% on the loan. What is the weighted average cost of capital for​ Eric? What is the weighted average cost of capital for​ Eric?

The following balance sheets were taken from the records of Blalock Company:

Additional transactions were as follows:

Required:

6. Select the ALL correct statements on whistleblowing.

The best practice of whistleblowing is to report illegal acts to your direct manager.

External investigators are a better option compared to internal audit for investigating the whistleblowing report.

Whistleblowers tend to be company insiders who have a strong moral compass.

It’s important to keep the whistleblower anonymous through a confidential whistleblower reporting mechanism.

7. Which example could impair independence in appearance?

One of your family members is connected to a client of your organization.

You provide paid services on your time off to a company customer.

You offer a client a worse product for your own sales target.

You accept expensive gifts from a client.

Case 2 – Capital Structure

1. PT Kreasi Nusantara plans to re-structure its capital due to the demand of some shareholders who would with draw their shares from company’s equities. To maintain a level of total assets, the company should either increase long-term debts or issue common shares to other shareholders (could be through private placement or initial public offering). Using 2 theories of capital structure, explain how does PT Kreasi Nusantara re-structure its capital! (20%)
2. Discuss why the dividends payment process is much simpler for private companies than for public companies! Use an example of your current company you work with! (15%)

You are an event management company. Your customers want you to create an event with the 'wow' factor was the brief given to you by North Cypriot Young Businessman Association who were looking to hold a conference followed by an evening of entertainment for 200 guest with overnight accommodation with Palm Beach Hotel. They are going to invite investors from Turkey to make them invest in North Cyprus by the means of Tourism. As an event management company what kind of solutions can you offer them. Design an event and make your customers happy. You have a 100.000 USD budget. Just give a tentative budget doesn’t have to be too detailed. -WRITE MAXIMUM 500 WORDS

During April 2019 Kelly Consulting entered into the following transactions:
Apr 2   Received cash from clients as an advance payment for services to be provided in May for $ 3,500.
Apr 5   Received cash from clients on account, $ 3,800.
Apr 9   Paid cash for a newspaper advertisement, $ 300.
Apr 13   Paid Office Stationary Company for part of the debt incurred last year, $ 400. When the office supplies were initially purchased, they were on account.

Apr 15   Cash received for services provided $ 8,500.
Apr 16 Paid part-time receptionist for two weeks’ salary including the amount owing on March 31, 2008. The total payment was for $ 750.
Apr 17   Recorded cash from cash clients for fees earned during Apr 1-17 for $ 8,200.
Apr 20   Purchased supplies on account, $ 400.
Apr 21   Recorded services provided on account for the period Apr 16 – 20, $ 3,900.
Apr 25   Recorded cash from cash clients for fees earned for the period Apr 17-23, $ 5,100.
Apr 27   Received cash from clients on account, $ 9,500.
Apr 28   Paid part-time receptionist for two weeks’ salary, $ 750.
Apr 29   Paid telephone bill for April, $ 120.
Apr 30   Paid electricity bill for April, $ 290.
Apr 30   Recorded cash from cash clients for fees earned for the period Apr 26-30, $ 3,875.
Apr 30   Recorded services provided on account for the remainder of April, $ 3,200.
Apr 30   Kelly withdrew $ 8,000 for personal use.
Instructions
Record the above transactions in the general journal. An explanation line is not required.
Post the beginning account balance and all of April’s transactions to T accounts. Prepare an unadjusted trial balance. Ensure debits equal credits. Remember that the cash T account is quite large so give yourself enough room.
At the end of April, the following adjustment data was assembled. Journalize the adjusting entries in the general journal and post to the T accounts. .
Apr 30   Insurance used up during April, $ 300.
Apr 30   Supplies remaining on hand at Apr 30th are $ 600.
Apr 30 Office equipment depreciated during the month. Original cost of equipment is $ 14,500. Equipment expected to last 3 years and have a salvage value of $2,625. Calculate and record the monthly depreciation amount rounded to full dollars.
Apr 30   Accrued receptionist salary on Apr 30th is $ 240.
Apr 30   Rent expired (used up) during April was $ 1,600.
Apr 30   Unearned fees remaining on April 30 are $ 2,000.
Instructions (continued)
Prepare an unadjusted trial balance ensuring total debits equal total credits.
Prepare an Income Statement, a Statement of Owner’s Equity and a Balance Sheet.
Record the closing journal entries into the general journal and post to the T Accounts. (Usually closing entries are completed at year-end not after 1 month. I am trying to save you some work).
Prepare a post-closing trial balance.
What is the current ratio at April 30th?
What is the acid-test ratio at April 30th?