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I would like some help with a case study for accounting. i need to find the total assets, total liabilities and the net income (losses).
I would like some help with a case study for accounting. i need to find the total assets, total liabilities and the net income (losses). Attached are the transactions in a 30 day period.
day 1: You have secured a loan through "PSU Bank" $48,000 principle Length of note: 5 years Interest: 1 1/2 % (could be expressed as 1.5%) Appropriate principal and accrued interest to be repaid at the end of each ye ar the loan is outstanding (i.e., the next payment will be October of next year) . Day 2: Buy office supplies: $100 Rent office equipment: $150/month - pay 3 months worth Rent office space $1500/month - pay 3 months worth and 1 month security deposit (same dollar amount as the monthly rent) - "Security Deposit" usually listed as an Asset same amount as one month's rent Secure basic insurance: $100/month - pay 6 months worth Note: even though these transactions occurred on Day 2, any necessary adjustments will be made for the full month. Day 3: Hire a receptionist: salary: $275/week - Pay on bi-weekly basis - first pay day is Day 12 - Work schedule: Mon-Fri 9am-5pm - Today is the first day of employment Day4: Provide 120 units of service 70 on account and 50 for cash Your selling price is $26.50 Day 12: Pay your receptionist now and every two weeks from here Day 18: Collect on all accounts receivable outstanding. Day 30: The 3 corporate directors want a dividend payment. Can you? The answer is no, why not? Instead, since they are also officers of the company, pay each of them a salary of $100 Using the process for a general ledger system, prepare the following for your first month of operation: Trial Balance Make necessary adjustments (Note: The Receptionist calculates $45 of office supplies are on hand.) Adjusted Trial Balance Close the books for the month and prepare the following financial statements: 1. Income Statement 2. Balance Sheet Produce a Post-closing Trial BalanceStep by Step Solution
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