Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Accounting Professionals Inc. experienced the following events in 2013, its first year of operation: 1. Performed services for $19,500 cash. 2. Purchased $6,600 of supplies
Accounting Professionals Inc. experienced the following events in 2013, its first year of operation: |
1. | Performed services for $19,500 cash. |
2. | Purchased $6,600 of supplies on account. |
3. | A physical count on December 31, 2013, found that there was $1,280 of supplies on hand. |
Required: |
Based on this information alone: |
a. | Record the events under an accounting equation. (Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with minus sign.) |
ACCOUNTING PROFESSIONALS, INC. Effect of Events on the Accounting Equation | |||||||
Assets | = | Liab. | + | Stk. Equity | |||
| | | |||||
Event | Cash | Supplies | = | Accounts Payable | Retained Earnings | ||
1. | Provided service | ||||||
2. | Purchased supplies | ||||||
3. | Used supplies | ||||||
| | | | ||||
Totals | = | ||||||
| | | | ||||
|
b. | Prepare an income statement, balance sheet, and statement of cash flows for the 2013 accounting period. (Amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Be sure to enter assets in order of their liquidity in the Balance sheet.) |
ACCOUNTING PROFESSIONALS, INC. Income Statement For the Year Ended December 31, 2013 | |
$ | |
| |
$ | |
| |
|
ACCOUNTING PROFESSIONALS, INC. Balance Sheet As of December 31, 2013 | ||
Assets | ||
$ | ||
| ||
Total assets | $ | |
| ||
Liabilities | ||
$ | ||
| ||
Total liabilities | $ | |
Stockholders |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started