Accounting homework help: Problems: Series A homeworkcrew.com
Chapter Review
1-7gProblems: Series A
Transactions
OBJ. 4
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:
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Opened a business bank account with a deposit of $55,000 from personal funds.
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Purchased office supplies on account, $3,300.
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Received cash from fees earned for managing rental property, $18,300.
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Paid rent on office and equipment for the month, $8,300.
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Paid creditors on account, $2,290.
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Billed customers for fees earned for managing rental property, $30,800.
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Paid automobile expenses (including rental charges) for the month, $1,380, and miscellaneous expenses, $1,800.
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Paid office salaries, $7,300.https://homeworkcrew.com/
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Determined that the cost of supplies on hand was $1,250; therefore, the cost of supplies used was $2,050.
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Withdrew cash for personal use, $13,800.
Instructions
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Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
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Briefly explain why the owner’s investment and revenues increased owner’s equity, while withdrawals and expenses decreased owner’s equity.
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Determine the net income for June.
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How much did June’s transactions increase or decrease Pamela Schatz’s capital?
AnswerCheck Figure: Cash bal. at end of June: $38,430
Financial Statements
OBJ. 5
The amounts of the assets and liabilities of Excalibur Travel Agency at December 31, 20Y5, the end of the year, and its revenue and expenses for the year follow. The capital of James Brewster, owner, was $710,000 on January 1, 20Y5, the beginning of the year. During the year, James withdrew $44,500.
Accounts payable | $ 73,500 | Rent expense | $ 38,100 | |
Accounts receivable | 302,000 | Supplies | 5,800 | |
Cash | 201,900 | Supplies expense | 4,300 | |
Fees earned | 967,000 | Utilities expense | 30,200 | |
Land | 576,500 | Wages expense | 540,400 | |
Miscellaneous expense | 6,800 |
Instructions
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Prepare an income statement for the year ended December 31, 20Y5.
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Prepare a statement of owner’s equity for the year ended December 31, 20Y5.
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Prepare a balance sheet as of December 31, 20Y5.
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What item appears on both the statement of owner’s equity and the balance sheet?
AnswerCheck Figure: 1. Net income: $347,200
Financial Statements
OBJ. 5
Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:

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Instructions
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Prepare an income statement for the month ended July 31, 20Y2.
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Prepare a statement of owner’s equity for the month ended July 31, 20Y2.
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Prepare a balance sheet as of July 31, 20Y2.
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(Optional) Prepare a statement of cash flows for the month ending July 31, 20Y2.
AnswerCheck Figure: 1. Net income: $31,200
Transactions; Financial Statements
OBJ. 4, OBJ. 5
On July 1, 20Y7, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
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Opened a business bank account with a deposit of $25,000 from personal funds.
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Purchased office supplies on account, $1,850.
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Paid creditor on account, $1,200.
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Earned sales commissions, receiving cash, $41,500.
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Paid rent on office and equipment for the month, $3,600.
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Withdrew cash for personal use, $4,000.
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Paid automobile expenses (including rental charge) for the month, $3,050, and miscellaneous expenses, $1,600.
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Paid office salaries, $5,000.
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Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900.
Instructions
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Indicate the effect of each transaction and https://homeworkcrew.com/the balances after each transaction, using the following tabular headings:
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Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31.
AnswerCheck Figure: 2. Net income: $27,350
Transactions; Financial Statements
OBJ. 4, OBJ. 5
D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company for a fee. The assets and liabilities of the business on July 1, 20Y6, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75,000; Accounts Payable, $40,000. Business transactions during July are summarized as follows:
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Joel Palk invested additional cash in the business with a deposit of $35,000 in the business bank account.
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Paid $50,000 for the purchase of land adjacent to land currently owned by D’Lite Dry Cleaners as a future building site.
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Received cash from cash customers for dry cleaning revenue, $32,125.
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Paid rent for the month, $6,000.
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Purchased supplies on account, $2,500.
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Paid creditors on account, $22,800.
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Charged customers for dry cleaning revenue on account, $84,750.
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Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $29,500.
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Paid the following: wages expense, $7,500; truck expense, $2,500; utilities expense, $1,300; miscellaneous expense, $2,700.
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Received cash from customers on account, $88,000.
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Determined that the cost of supplies on hand was $5,900; therefore, the cost of supplies used during the month was $3,600.
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Withdrew $12,000 cash for personal use.
Instructions
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Determine the amount of Joel Palk’s capital as of July 1, 20Y6.
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State the assets, liabilities, and owner’s equity as of July 1 in equation form similar to that shown in Exhibit 5. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction.
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Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31.
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(Optional) Prepare a statement of cash flows for July.
AnswerCheck Figure: 3. Net income: $63,775
Missing Amounts from Financial Statements
OBJ. 5
The financial statements at the end of Wolverine Realty’s first month of operations are as follows:

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Instructions
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