Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do I do this last part? On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville,

how do I do this last part?

image text in transcribed

image text in transcribed

image text in transcribed

On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,468 cash. The new company, Waterway Sales and Service, has the following transactions during January. 1. Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. 2. Purchases 44 personal computers at a cost of $1.672 each, 10 graphics computers at a cost of $2,672 each, and 29 printers at a cost of $472 each, paying cash upon delivery. Sales, repair, and office employees earn $14.068 in salaries and wages during January, of which $4,468 was still payable at the end of January. 3. 4. Sells 34 personal computers at $2.722 each, 8 graphics computers for $3.772 each, and 19 printers for $672 each: $76,468 is received in cash in January, and $59.024 is sold on a deferred payment basis. 5. Other operating expenses of $9.868 are incurred and paid for during January: $3,468 of incurred expenses are payable at January 31. Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statement for the month of January. (Enter loss using either a negative sign preceding the number, eg. -45 or parentheses eg.(45).) WATERWAY SALES AND SERVICE Income Statement For the Month Ended January 31, 2020 (1) Cash Basis (2) Accrual Basis Revenues $ 76468 $ 135492 Expenses Cost of Computers and Printers v 113976 i 87192 i Rent 12000 i 4000 i Salaries and Wages V 9600 i 14068 i Other Operating Expenses 9868 13336 Total Expenses 145444 118596 Net Income / (Loss) 5 (68976) $ 16896 Using the transaction data above, prepare (1) a cash-basis balance sheet and (2) an accrual-basis balance sheet as of January 31, 2020. (List assets in order of liquidity.) WATERWAY SALES AND SERVICE Balance Sheet January 31, 2020 (1) Cash Basis (2) Accrual Basis Assets Cash $ Accounts Receivable 0 Inventory 0 Prepaid Rent 0 Total Assets $ $ Liabilities and Owners' Equity Accounts Payable $ 0 $ Salaries and Wages Payable Owner's Capital Total Liabilities and Owner's Equity $ V

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions