Need to understand how to solve for part 2: Retained Earnings , Revenues, Expenses.
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Luis Madero, after working for several years with a large public accounting firm, decided to open his own accounting service. The business is operated as a corporation under the name Madero Accounting Services. The following captions and amounts summarize Maderos balance sheet at July 31, 2019 Assets - Llabuities - Equity Accounts Receivable 15,900 Supplies 4,100 Account Payable 2.500 Notes Payabile 4,000 Common Stock 12,000 Retained Earnings 9.500 8,000 + + = + + Accounting numeric field for $15.000 cash Paid SBS for first month's rent on office space Purchased supplies of $2,250 on credit. d. Borrowed 8,500 from the bank e Paid $1.000 on account for supplies purchased earlier on credit Paid secretary's salary for August of $2,150 9. Performed accounting services for clients who paid cash upon completion of the service in the total amount of $4,700. h. Used $3,180 of the supplies on hand. i. Performed accounting services for clients on credit in the total amount of $1,920. 1. Purchased $500 in supplies for cash. k Collected si,290 cash from clients for whom services were performed on credit. Pald 51,000 dividend to stock Required: 1. Record the effects of the transactions listed above on the accounting equation. The totals at July 31, 2019 have already been entered. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. Assets Liabilities + Equity + Acct. Rec. + Supplies - Acct. Pay. + Notes Pay. + 15,900 4,100 2,500 4,000 Cash 8,000 15,000 -850 Common Stock 12,000 15,000 + Ret. Carn. 9,500 C -850 a. 2,250 2,250 8,000 -2,150 1,920 -500 -1,290 1,290 -1,000 31,410 -1,000 8,940 + 16,530 - 3,670 = 3,670 + 12,000 - 27,000 + 2. Prepare the trial balance at August 31, 2019. If an amount box does not require an entry, leave it blank. Madero Accounting Services Trial Balance August 31, 2019 Debit $ 31,410 Credit Account Cash $ 0 Accounts Receivable 16,530 3,670 3,670 Supplies Accounts Payable Notes Payable Common Stock Retained Earnings 12,000 27,000 Dividends 1,000 Revenues Expenses Luis Madero, after working for several years with a large public accounting firm, decided to open his own accounting service. The business is operated as a corporation under the name Madero Accounting Services. The following captions and amounts summarize Maderos balance sheet at July 31, 2019 Assets - Llabuities - Equity Accounts Receivable 15,900 Supplies 4,100 Account Payable 2.500 Notes Payabile 4,000 Common Stock 12,000 Retained Earnings 9.500 8,000 + + = + + Accounting numeric field for $15.000 cash Paid SBS for first month's rent on office space Purchased supplies of $2,250 on credit. d. Borrowed 8,500 from the bank e Paid $1.000 on account for supplies purchased earlier on credit Paid secretary's salary for August of $2,150 9. Performed accounting services for clients who paid cash upon completion of the service in the total amount of $4,700. h. Used $3,180 of the supplies on hand. i. Performed accounting services for clients on credit in the total amount of $1,920. 1. Purchased $500 in supplies for cash. k Collected si,290 cash from clients for whom services were performed on credit. Pald 51,000 dividend to stock Required: 1. Record the effects of the transactions listed above on the accounting equation. The totals at July 31, 2019 have already been entered. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. Assets Liabilities + Equity + Acct. Rec. + Supplies - Acct. Pay. + Notes Pay. + 15,900 4,100 2,500 4,000 Cash 8,000 15,000 -850 Common Stock 12,000 15,000 + Ret. Carn. 9,500 C -850 a. 2,250 2,250 8,000 -2,150 1,920 -500 -1,290 1,290 -1,000 31,410 -1,000 8,940 + 16,530 - 3,670 = 3,670 + 12,000 - 27,000 + 2. Prepare the trial balance at August 31, 2019. If an amount box does not require an entry, leave it blank. Madero Accounting Services Trial Balance August 31, 2019 Debit $ 31,410 Credit Account Cash $ 0 Accounts Receivable 16,530 3,670 3,670 Supplies Accounts Payable Notes Payable Common Stock Retained Earnings 12,000 27,000 Dividends 1,000 Revenues Expenses
