Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. The following items are taken from the financial statements of La Brea Ltd. For the fiscal year ended December 31, 2022. Note they are

image text in transcribed

6. The following items are taken from the financial statements of La Brea Ltd. For the fiscal year ended December 31, 2022. Note they are in alphabetical order. Accounts payable.. $ 15,500 Accounts receivable. 18,000 Accumulated depreciationbuildings. 30.500 Advertising expense 21,000 Cash 15,000 Common shares (10,000 shares) 90,000 Depreciation expense. 12,000 Dividends declared 5,000 Income tax expense. 10,000 Insurance expense. 3,000 Bank loan payable. 70.000 Prepaid insurance 6,000 Rent expense. 22,000 Retained earnings, January 1, 2022 12.000 Salaries expense. 32.000 Salaries payable 3,000 Service revenue. 143,000 4,000 Supplies Supplies expense. Buildings 6,000 210,000 Prepare an Income Statement and a classified statement of financial position for La Brea Ltd. At December 31, 2022, assuming the bank loan payable is a non-current liability. 7. You have been hired as the accountant for a newly formed real estate company called Antsy Real Estate Limited. The following business transactions occurred during the month of September, 2022 1. Shareholders invested $35,000 in cash for 35,000 common shares to start the corporation. 2. Signed a lease for office space, at $9,500 per year for five years. 3. Paid $250 cash for supplies. 4. Purchased equipment for $12.000, paying $7,000 in cash and signing a 30-day bank loan payable for the balance. 5. Purchased $200 of supplies on account. 6. Real estate commission fees billed to clients totalled 59,700. 7. Paid $700 cash for the current month's rent. 8. Paid S100 cash on account for supplies purchased in transaction 5. 9. Received a bill for $500 for advertising for the current month. 10. Paid $3,500 cash for office salaries. 11. Paid $1,000 cash dividends to shareholders. 12. Received a cheque for $5,000 from a client in payment on account for commissions billed in transaction 6 Instructions a. Prepare an accounting equation analysis for these transactions b. Record the transactions for September 2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting An Introduction To Cost Management Systems

Authors: Philip Jagolinzer

1st Edition

0324015828, 978-0324015829

More Books

Students also viewed these Accounting questions

Question

=+c. Find or create a visual.

Answered: 1 week ago