In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In order to report net income that accurately matches revenues and the expenses that helped to generate them, W.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March 1. Paid the social media manager the amount owed from January 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2,625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In February and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March 9. Paid the social media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February and March. 10. Paid friends $600 to complete 50 jobs during February and March 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the social media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February and March. 10. Paid friends $600 to complete 50 jobs during February and March 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the social media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. Survey of Accounting Class 8 Packet p. 3 Hem My Assistant Accounting Equation for February - March Assets Liabilities + Accts Rec Supplies Fees Notes Payable Payable $495 $0 $16 $400 Cash $739 Stockholders' Equity Common Retained Stock Earings $100 $718 Account Nities for RE Bal. Feb. 1 1. 2. 3. I 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: I January $1,695 February March Total Service revenue Operating expenses: Collection fee $60 280 120 180 Gas expense Advertising expense Scheduling expense Delivery expense Salaries expense Supplies expense Total operating expenses 240 400 My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Common Stock Retained Earnings Total Stockholders Equity Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders Equity Total Assets Total Liabilities & Stockholders Equity (Alternative Vertical Form) My Assistant, Inc. Balance Sheet As of March 31 Assets Total Assets Liabilities and Stockholders' Equity Liabilities: Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and stockholders' Equity Cash Flows Work Paper: Item Operating Investing Financing No Cash Effect Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs | 5. Complete jobs and bill clients 6. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance Ending cash balance $ 903 In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In order to report net income that accurately matches revenues and the expenses that helped to generate them, W.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March 1. Paid the social media manager the amount owed from January 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2,625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In February and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March 9. Paid the social media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February and March. 10. Paid friends $600 to complete 50 jobs during February and March 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the social media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February and March. 10. Paid friends $600 to complete 50 jobs during February and March 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the social media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. Survey of Accounting Class 8 Packet p. 3 Hem My Assistant Accounting Equation for February - March Assets Liabilities + Accts Rec Supplies Fees Notes Payable Payable $495 $0 $16 $400 Cash $739 Stockholders' Equity Common Retained Stock Earings $100 $718 Account Nities for RE Bal. Feb. 1 1. 2. 3. I 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: I January $1,695 February March Total Service revenue Operating expenses: Collection fee $60 280 120 180 Gas expense Advertising expense Scheduling expense Delivery expense Salaries expense Supplies expense Total operating expenses 240 400 My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Common Stock Retained Earnings Total Stockholders Equity Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders Equity Total Assets Total Liabilities & Stockholders Equity (Alternative Vertical Form) My Assistant, Inc. Balance Sheet As of March 31 Assets Total Assets Liabilities and Stockholders' Equity Liabilities: Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and stockholders' Equity Cash Flows Work Paper: Item Operating Investing Financing No Cash Effect Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs | 5. Complete jobs and bill clients 6. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance Ending cash balance $ 903