Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need everything highlighted in yellow corrected because it is wrong. - March 1: Owner borrowed $125,000 to fund/start the business. The loan term is

I need everything highlighted in yellow corrected because it is wrong.

image text in transcribedimage text in transcribed

image text in transcribed - March 1: Owner borrowed $125,000 to fund/start the business. The loan term is 5 years. - March 1: Owner paid $250 to the county for a business license. - March 2: Owner signed lease on office space; paying first (March 20XX) and last month's rent of $950 per month. - March 5: Owner contributed office furniture valued at $2,750 and cash in the amount of $15,000 to the business. - March 6: Owner performed service for client in the amount of $650. Customer paid in cash. - March 8: Owner purchased advertising services on account in the amount of $500. - March 10: Owner provided services to client on account, in the amount of $1,725. - March 15: Owner paid business insurance in the amount of $750. - March 20: The owner received first utility bill in the amount of $135, due in April. - March 20: Office copier required maintenance; owner paid $95.00 for copier servicing. - March 22: Owner withdrew $500 cash for personal use. - March 25: Owner paid $215 for office supplies. - March 25: Owner provided service to client in the amount of $350. Client paid at time of service. - March 30: Owner paid balance due for advertising expense purchase on March 8. - March 30: Received payment from customer for March 10 invoice in the amount of $1,725. - March 31: Last day of pay period; owner owes part-time worker $275 for the March 16 through March 31 pay period. This will be paid on April 5. - March 31: Provided service for client on account in the amount of $3,500. - March 31: Record depreciation of the office furniture at $45.83. Assets Current Assets: \begin{tabular}{|l|r|} \hline Cash & 138,515.00 \\ \hline Office Furniture & 2,750.00 \\ \hline A \\ \hline Accounts Receivable & \\ \hline & 3,500.00 \\ \hline Total Current Assets & \\ \hline \end{tabular} Non-Current Assets: \begin{tabular}{|l|c|} \hline & \\ \hline & \\ \hline Total Non Current/Fixed Assets & - \\ \hline \end{tabular} Liabilities and Owners' Equity Current Liabilities: \begin{tabular}{|l|r|} \hline wages payable & 275.00 \\ \hline accounts payable & 635.00 \\ \hline Total Current Liabilities & 910.00 \\ \hline \end{tabular} Long Term Liabilities: \begin{tabular}{|l|r|} \hline Notes Payable & 125,000.00 \\ \hline Total Long Term Liabilities: & 125,000.00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Total Liabilities: & 125,910.00 \\ \hline \end{tabular} Owner's Equity \begin{tabular}{|l|r|} \hline owners capital & 17,750.00 \\ \hline & \\ \hline \multicolumn{2}{|c|}{ C } \\ \hline Total Equity & 17,750.00 \\ \hline \end{tabular} Total Liabilities \& Equity A - You will want to review the placement of this account on the company's balance sheet. B - Don't forget to include appropriate accounts and amounts for these lines. C - Make sure to review the final balance in these accounts, ensuring all prior feedback has been incorporated. Total Assets: 144,765.00 143,660.00

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

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

15th edition

978-0133125634, 9780133423815, 133125637, 133423816, 978-0133125689

More Books

Students also viewed these Accounting questions

Question

Focus on the interview.

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago