Accounting Essay

612 WordsMar 2, 20153 Pages
REVIEW Problem: (Chapter 2) Bob Sample opened the Campus Laundromat on September 1, 2012. During the first month of operations, the following transactions occurred. Sept. 1 Bob invested $20,000 cash in the business. 2 The company paid $1,000 cash for store rent for September. 3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable. 4 Paid $1,200 for a one-year accident insurance policy. 10 Received a bill from the Daily News for advertising the opening of the Laundromat $200. 20 Bob withdrew $700 cash for personal use. 30 The company determined that cash receipts for laundry services for the month were $6,200. Instructions (a) Journalize the September transactions. (Use J1 for the journal page number.) (b) Open ledger accounts and post the September transactions. (c) Prepare a trial balance at September 30, 2012. SOLUTION:[pic][pic][pic][pic] [pic] [pic] Solution: [pic][pic][pic] [pic] [pic] [pic] Exercise #1 Identify whether the following items would be reported on the income statement (IS) or balance sheet (BS). 1. Cash 2. Service Revenue 3. Notes Payable 4. Interest Expense 5. Accounts Receivable Exercise #2 Use the following information to calculate for the year ended December 31, 2008 (a) net income (net loss), (b) ending owner’s equity, and (c) total assets. Supplies $ 1,000 Revenues $23,000 Operating expenses 12,000 Cash 15,000 Accounts payable 9,000 Drawings 1,000 Accounts receivable 3,000 Notes payable 1,000 Beginning Capital 5,000 Equipment 6,000 Exercise #3 Presented below is a balance sheet for Jim Dixon Lawn Service at December 31, 2013. JIM DIXON LAWN SERVICE Balance Sheet December 31, 2013 [pic]The

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