Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Morin Appliance Store, located in Mississauga, Ontario, is owned by Michelle Morin. On the morning of September 30, 2020, she has the following assets and

image text in transcribed
image text in transcribed
Morin Appliance Store, located in Mississauga, Ontario, is owned by Michelle Morin. On the morning of September 30, 2020, she has the following assets and liabilities. J. Bahous - creditor 1000 Sparks Supply Co.- creditor 3 000 Delivery Truck 10 800 D. Murray - debtor 800 Bank Loan 27 500 Capital ??? Equipment 1310 Mortgage 50000 Building 90 000 Cash 5000 M. Leone - debtor 700 a) Calculate M. Morin's capital on September 30, 2020. (3 marks) b) Set up the assets, liabilities, and capital on the equation analysis sheet provided. (1 mark) c) Analyze the transactions listed below and record the necessary changes on the equation analysis sheet. Calculate new balances after each transaction. (8 marks) d) After completing the transactions, make sure the equation is still equal. Then prepare a new balance sheet. (8 marks) Transactions between October 1-31, 2020. 1. Morin has a minor repair made on the delivery truck. She pays the bill for $300 immediately 2. An old cash register, included in the Equipment at a value of $450, is sold for $150 cash. 3. Morin invests an additional $500 in her business. 4. A new cash register is purchased from Sparks Supply Co. for $785. A cash payment of $250 is made. The balance of the purchase price will be paid later. 5. A bank loan payment of $350 is made. 6. Morin Appliance store repairs a washing machine for D. Murray at a price of $500. A bill is sent to D. Murray 7. A second delivery truck is purchased at a cost of $17,000 Morin Appliance Store pays $3000 cash, the rest is borrowed from their bank loan. 8. M. Leone who owes the business $700, pays $600 in partial payment of debt Equation Analysis Sheet Template Owner s Equity Cash Assets Equipmen Buildin 8 A/R D. M. Murra Leone Y Deliver Sparks Supply Co. Liabilities A/P J. Ban Bahou k S Loan Mortgage M. Morin, Capital Truck Bahou Opening Balance

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_2

Step: 3

blur-text-image_3

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

Energy Audit Of Building Systems An Engineering Approach

Authors: Moncef Krarti

1st Edition

0849395879, 978-0849395871

More Books

Students also viewed these Accounting questions

Question

1.4 Graphs to Describe Time-Series Data

Answered: 1 week ago