Week One Workout Assignment
Standard Accounting Equations
1 . Ideas. Jean's Ocean Supply specializes in the sale of cruising equipment and acces¬sories. Identify the Basic items which follow as an asset (A), liability (L), revenue (R), or price (E) from the firm's point of view.
a. The inventory of cruising supplies held by the business. Asset (A) b. Monthly rental charges paid for retail store space. Expenditure (E) c. A loan due to People Bank. Responsibility (L)
m. New computer equipment bought to handle daily record keeping. Asset (A) e. Daily sales made to customers. Revenue (R)
n. Amounts credited from consumers. Asset (A)
g. Land owned by company to get used as a future shop site. Asset (A) l. Weekly incomes paid to salespeople. Price (E)
installment payments on your Basic computations. The following chosen balances had been extracted in the accounting information of Rossi Enterprises upon December thirty-one, 20X3:
Accounts Payable $3, 200 Curiosity Expense $2, 500
Accounts Receivable 13, 800 Area 18, 1000
Auto Expense 1, nine hundred Loan Payable 40, 1000
Building 30, 000 Duty Expense 3, 300
Funds 7, four hundred Utilities Expenditure 4, 75
Fee Revenue 56, nine hundred Wage Expenditure 37, 500
a. Determine Rossi's total assets since December 23.
w. Determine the company's total financial obligations as of December 31. 3200+1900+2500+40000+3300+4100+37500=$92500
c. Calculate 20X3 net income or reduction.
3. Balance sheet preparation. The subsequent data relate with Preston Organization as of 12 , 31, 19XX:
Building$44, 000Accounts receivable$24, 1000
Cash17, 000Loan payable30, 1000
J. Preston, Owners Equity65, 000Land21, 500
Prepare a "balance sheet" as of Dec 31, 19XX. (See Show 1 . 1 and 1 ) 4) Property
Accounts Receivable $24000
Debts and Owners equity
Owner Collateral 65000
(Accounts payable needs to be $11000 to balance equation? )
4. Basic deal processing. On November one of the current yr, Richard Parker established a sole proprietorship. The following deals occurred during the month:
1: Parker invested $19, 000 in the business.
2: Paid $9, 500 to acquire a applied minivan.
several: Purchased $1, 800 of office furniture in account.
4: Performed $2, 95 of asking services in account.
5: Paid $300 of repair expenses.
six: Received $800 from consumers who were recently billed in item 4. 7: Paid out $500 on account to the supplier of office furniture in item three or more. 8: Received a $150 electric bill, to be paid next month.
9: Parker withdrew $600 from the organization.
twelve: Received $250 in cash from clients for consulting services made.
a. Arrange the next asset, legal responsibility, and customer's equity aspects of the account¬ing equation: Money, Accounts Receivable, Office Furniture, Vehicle, Accounts Payable, Investments/Withdrawals, and Revenues/Expenses. (See Exhibit 5) Assets
Liabilities and Owners equity
b. Record each deal on a distinct line. In the end transactions had been recorded, calculate the balance in each of the earlier items. c. Answer the next questions to get Parker.
(1) Simply how much does the company owe to its collectors at month-end? On which monetary statement(s) might this information be found? Furniture (1800-500)1300+Expenses (300+150)450=1750 (2) Did the corporation have a " good” month coming from an accounting viewpoint? In brief explain. I might have to say number The cash coming in vs . the money out can be near doubled. Cash readily available decreased simply by 2350 although cash actually received was 1300. However, considering the boost of asset value...