B https://www.chegg.com/homework-help/Financial Accounting-17th- e h negg Study Textbook Solutions Expert Q&A Study Pack Practice Search ON Chapter 3, Problem 5PSA Bookmark Show all steps: To Way GIC BUGS TUWS May 1 Dr. Schekter invested $480,000 cash in the business in exchange for 6,000 shares of capital stock. May 4 Land and a building were purchased for $300,000. Of this amount, $84,000 applied to the land, and $216,000 to the building. A cash payment of $120,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. May 9 Medical instruments were purchased for $156,000 cash. May 16 Office fixtures and equipment were purchased for $60,000. Dr. Schekter paid $24,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days. May 21 Office supplies expected to last several months were purchased for $6,000 cash. May 24 Dr. Schekter billed clients $2,640 for services rendered. Or this amount, $2.280 was received in cash, and $360 was billed on account (due in 30 days). May 27 A $480 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5. May 28 Received a $120 payment on the $360 account receivable recorded May 24. May 31 Paid employees $3,360 for salaries carned in May. A partial list of account titles used by Dr. Schekter includes the following Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Medical Instruments Veterinary Service Revenue Office Fixtures and Equipment Advertising Expense Land Salary Expense Building Instructions a. Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of May. Organize your answer in tabular form, using the column headings shown. Use I for increase, D for decrease, and NE for no effect The May 1 transaction is provided for you. Balance Sheet Transaction May 1 Income Statement Revenue - Expenses Net Income NE NE NE Assets Liabetes + Owners' Equity NE h Pronare oumal ontries includincanlanations for each transaction 4:00 PM https://www.chegg.com/homework-help/Financial Accounting-17the egg Study Textbook Solutions Expert Q&A Study Pack Practice Search Chapter 3. Problem 5PSA Bookmark Show all steps: ON Income Statement Balance Sheet Transaction May 1 Revenue - Expenses NE Net Income NE Assets = Liabilities + Owners' Equity NE NE b. Prepare journal entries (including explanations) for each transaction. c. Post each transaction to the appropriate ledger accounts (use the Taccount format illustrated in Exhibit 3-8). d. Prepare a trial balance dated May 31, current year. e. Using figures from the trial balance prepared in part d, compute total assets, total liabilities, and owners' equity. Did May appear to be a profitable month? EXHIBIT 3-8 Overnight Auto Service's Ledger Accounts OVERNIGHT AUTO SERVICE THE LEDGER Cash 2/1 1/31 Bal 2/15 16,600 4.980 2/28 360 4,900 3.200 2/28 BL 513.120 Accounts Receivable 1/31 Bal. 2/28 1.200 5.400 Shop Supplies BL 56.600 1/31 Bal 1.400 B 51.400 P 4:09 PM os220/2020 enterprises incorp X + https://www.chegg.com/homework-help/Financial Accounting-17the @ gg Study Textbook Solutions Expert Q&A Study Pack Practice Search Bookmark Chapter 3. Problem 5PSA Show all steps: ON OVERNIGHT AUTO SERVICE THE LEDGER Asset Accounts Cash 1/31 Bal. 360 16,600 4.980 2/15 2/28 4,900 3.200 B. $13.120 2/28 Accounts Recoyable 1/31 Bal. 1.200 5,400 Bal 56.600 2/29 Shop Supplies 1/31 Bal. Bal $1,400 1,400 Tools and Equipment GL $12.000 1/31 Bal 12.000 Building a $36.000 1/31 Bal 36,000 und BAL $52.000 1/31 Bal 52,000 BOLSO Bal 56,100 @ w 2 /20/2020 6 O t ps://www.chegg.com/homework-help/Financial Accounting-17th-e . Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Search E Chapter 3, Problem 5PSA Bookmark Show all steps: ON 3 OVERNIGHT AUTO SERVICE THE LEDGER Uality and Owners' Equity Accounts Notes Payable 1/31 90,000 0 000 Accounts Payable 4.900 3.200 1/31 - 7.000 470 1,400 220 1,600 Bal $10.470 1/31B 80,000 000 31 52200 2/29 2.200 40 5.400 360 30 2/2 470 Wages Expo 131 Bal 56.1002/20 B 1.200 4.800 Utles Expense 200 0 B https://www.chegg.com/homework-help/Financial Accounting-17the chegg Study Textbook Solutions Expert Q&A Study Pack Practice Search Chapter 3. Problem 5PSA Bookmark Show all steps: ON 360 4.900 1/31 at Accounts Payable 30.000 a $30,000 3.200 1/31 7.000 470 1.400 1,500 Bal $10.470 2/28 Capital Stock 1/31 Bal Dividends 80,000 Bal $80,000 131 Bal Bat $3.200 2/28 3.200 Repair Service Revenue 1/31 Bal 2015 2.200 4,980 5,400 220 Bal $12.580 Advertising Expense B02/2 490 Wages Expense 1.200 131 2/28 Bal 56,100 4.900 Uutes Expense 131 Bal 2/28 BL $1.000 1.600 410 PM 2/20/2020 B https://www.chegg.com/homework-help/Financial Accounting-17th- e h negg Study Textbook Solutions Expert Q&A Study Pack Practice Search ON Chapter 3, Problem 5PSA Bookmark Show all steps: To Way GIC BUGS TUWS May 1 Dr. Schekter invested $480,000 cash in the business in exchange for 6,000 shares of capital stock. May 4 Land and a building were purchased for $300,000. Of this amount, $84,000 applied to the land, and $216,000 to the building. A cash payment of $120,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. May 9 Medical instruments were purchased for $156,000 cash. May 16 Office fixtures and equipment were purchased for $60,000. Dr. Schekter paid $24,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days. May 21 Office supplies expected to last several months were purchased for $6,000 cash. May 24 Dr. Schekter billed clients $2,640 for services rendered. Or this amount, $2.280 was received in cash, and $360 was billed on account (due in 30 days). May 27 A $480 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5. May 28 Received a $120 payment on the $360 account receivable recorded May 24. May 31 Paid employees $3,360 for salaries carned in May. A partial list of account titles used by Dr. Schekter includes the following Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Medical Instruments Veterinary Service Revenue Office Fixtures and Equipment Advertising Expense Land Salary Expense Building Instructions a. Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of May. Organize your answer in tabular form, using the column headings shown. Use I for increase, D for decrease, and NE for no effect The May 1 transaction is provided for you. Balance Sheet Transaction May 1 Income Statement Revenue - Expenses Net Income NE NE NE Assets Liabetes + Owners' Equity NE h Pronare oumal ontries includincanlanations for each transaction 4:00 PM https://www.chegg.com/homework-help/Financial Accounting-17the egg Study Textbook Solutions Expert Q&A Study Pack Practice Search Chapter 3. Problem 5PSA Bookmark Show all steps: ON Income Statement Balance Sheet Transaction May 1 Revenue - Expenses NE Net Income NE Assets = Liabilities + Owners' Equity NE NE b. Prepare journal entries (including explanations) for each transaction. c. Post each transaction to the appropriate ledger accounts (use the Taccount format illustrated in Exhibit 3-8). d. Prepare a trial balance dated May 31, current year. e. Using figures from the trial balance prepared in part d, compute total assets, total liabilities, and owners' equity. Did May appear to be a profitable month? EXHIBIT 3-8 Overnight Auto Service's Ledger Accounts OVERNIGHT AUTO SERVICE THE LEDGER Cash 2/1 1/31 Bal 2/15 16,600 4.980 2/28 360 4,900 3.200 2/28 BL 513.120 Accounts Receivable 1/31 Bal. 2/28 1.200 5.400 Shop Supplies BL 56.600 1/31 Bal 1.400 B 51.400 P 4:09 PM os220/2020 enterprises incorp X + https://www.chegg.com/homework-help/Financial Accounting-17the @ gg Study Textbook Solutions Expert Q&A Study Pack Practice Search Bookmark Chapter 3. Problem 5PSA Show all steps: ON OVERNIGHT AUTO SERVICE THE LEDGER Asset Accounts Cash 1/31 Bal. 360 16,600 4.980 2/15 2/28 4,900 3.200 B. $13.120 2/28 Accounts Recoyable 1/31 Bal. 1.200 5,400 Bal 56.600 2/29 Shop Supplies 1/31 Bal. Bal $1,400 1,400 Tools and Equipment GL $12.000 1/31 Bal 12.000 Building a $36.000 1/31 Bal 36,000 und BAL $52.000 1/31 Bal 52,000 BOLSO Bal 56,100 @ w 2 /20/2020 6 O t ps://www.chegg.com/homework-help/Financial Accounting-17th-e . Chegg Study Textbook Solutions Expert Q&A Study Pack Practice Search E Chapter 3, Problem 5PSA Bookmark Show all steps: ON 3 OVERNIGHT AUTO SERVICE THE LEDGER Uality and Owners' Equity Accounts Notes Payable 1/31 90,000 0 000 Accounts Payable 4.900 3.200 1/31 - 7.000 470 1,400 220 1,600 Bal $10.470 1/31B 80,000 000 31 52200 2/29 2.200 40 5.400 360 30 2/2 470 Wages Expo 131 Bal 56.1002/20 B 1.200 4.800 Utles Expense 200 0 B https://www.chegg.com/homework-help/Financial Accounting-17the chegg Study Textbook Solutions Expert Q&A Study Pack Practice Search Chapter 3. Problem 5PSA Bookmark Show all steps: ON 360 4.900 1/31 at Accounts Payable 30.000 a $30,000 3.200 1/31 7.000 470 1.400 1,500 Bal $10.470 2/28 Capital Stock 1/31 Bal Dividends 80,000 Bal $80,000 131 Bal Bat $3.200 2/28 3.200 Repair Service Revenue 1/31 Bal 2015 2.200 4,980 5,400 220 Bal $12.580 Advertising Expense B02/2 490 Wages Expense 1.200 131 2/28 Bal 56,100 4.900 Uutes Expense 131 Bal 2/28 BL $1.000 1.600 410 PM 2/20/2020