Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lindsay Beaven, an attorney, had the following transactions (among others) during 20X0, her initial year in law practice Click the icon to view the transactions)

image text in transcribed
image text in transcribed
Lindsay Beaven, an attorney, had the following transactions (among others) during 20X0, her initial year in law practice Click the icon to view the transactions) Requirements 1. By using the balance sheet equation formal, analyze the effects of the preceding transactions on (1) Beaven's and 2) the other party to the transactions financial position. Assume that appropriate entries were routinely made for the explicit transactions. However no adjustments have been made before December 31 in part() assume that the secretary uses the accrual basis for her entry 2. For each transaction, prepare the journal entries for Lindsay Beaven and the other entities involved. Requirement 1. By using the balance sheet equation format, analyze the effects of the preceding transactions on (1) Beaven's and (2) the other party to the transactions financial position. Assume that appropriate entries were routinely made for the explicit transactions. However, no adjustments have been made before December 31 In parti assume that the secretary uses the accrual basis for her entry (Prep = Prepaid, Exp = Expense, Acer Accrued, Rec Receivable Pay - Payabi Unea Unearned. Rev Revenue Le Legal. Use parentheses or a minus sign to show a decrease in the balance sheet equation component Leave any unused cells blank) Enter the transactions into the equation one transaction at a time, beginning with the analysis for Beaven Assets Liabilities. Stockholders' Equity Acar Acce Acc Unear Unean Leg Rent Prep Prep Fee Wages Fees Wages FOD Rent Wage Rent Exp Rec Rec Pay Pay Rev Rov Rew Expense al 14400 16000 Acer - More info a. On May 1, Beaven leased office space for 1 year. The landlord (lessor) insisted on full payment in advance. Prepaid Rent was increased and Cash was decreased by $14,400 on Beaven's books. Similarly, the landlord increased Cash and increased Unearned Rent Revenue. b. On July 1, Beaven received a retainer of $7,200 cash for services to be rendered to her client, a local trucking company, over the succeeding 12 months. Beaven increased Cash and Unearned Fee Revenue. The trucking company increased Prepaid Expenses and decreased Cash. As of December 31, Beaven had not recorded $350 of unpaid wages earned by her secretary during late December. d. During November and December, Beaven rendered services to another client, a utility company. She had intended to bill the company for $5,500 services through December 31, but failed to do so. C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

9th edition

290-1259222138, 1259222136, 978-1259222139

Students also viewed these Accounting questions