Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

My accounting equation is not being balanced in the end. Where am I going wrong? K M DOUBLE ENTRY SYSTEM Cast 55 Ltd. has following

image text in transcribed

image text in transcribed

My accounting equation is not being balanced in the end. Where am I going wrong?

K M DOUBLE ENTRY SYSTEM Cast 55 Ltd. has following account balances as on 31 December 2019: ACCOUNTS Cash Accounts Receivable Prepaid Rent Prepaid Insurance Supplies Equipment Trucks Accounts Payable Common Stock Retained Earnings AMOUNT E 6,000 7,000 1,900 1,200 950 7,000 10,000 2,700 25,000 6,350 Business transactions during December 2017 are presented as follows: 1. Company received cash from clients for services, 7,500 2. Cast 55 Ltd. paid to creditors 600, 3. Paid office rent for the month of December, 950, 4. Company billed client for accounting services on account, 8,200 5. Supplies were purchased on account, 450, 6. Company received cash from clients billed previously, 4,200 7. Cast 55 Ltd. received an invoice for services from Copy Plus for December (the invoice will be paid next month), 550, 8. Cast 55 Ltd. paid monthly salaries, 4,700, 9. Utilities expense were paid, 380, 10. Miscellaneous expense was paid, 250, 11. Paid for monthly insurance, E200 12. Dividends were paid, 750. Required: Apply the basic Accounting Equation (create a spreadsheet) to complete a transaction analysis for each of the above transactions (hint: enter the balances provided first) Task Sheet2 C AutoSum- Custom Normal Bad Good Neutral 28 O MI lo Insert Delete Format - % 8.00 Conditional Format as Calculation Formatting Table Check Cell Explanatory... Input Clear Sort & Find & Filter Select Number Styles Cells Editing id E D F G H 1 J K L M P N O R S + + Net Income Cash Accounts Receivable Assets Prepaid Pre-paid Rent Insurance 1,900 1,200 Supplies Equipment Trucks = Liabilities Accounts Payable 2,700 Owner's Equity Common Retained Dividends Stock Earnings 6,350 Revenue Expenses 7,000 950 7,000 10,000 25,000 +7500 6,000 +7500 -600 -600 +950 -950 +8200 +8200 +450 +450 +4200 4200 th) +550 +550 4700 -380 +4700 +380 +250 +200 -250 -200 -750 +750 750 f1,000 $1,400 3,100 25,000 7,000 10,000 6,350 7,030 f950 11,000 15,700 11,020

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

College Accounting Chapters 1-30

Authors: David Haddock, John Price, Michael Farina

16th Edition

1260247902, 978-1260247909

More Books

Students also viewed these Accounting questions