Nguyen Company had the following account balances available Assets Liabilities Owners' Equity Cash A R Pre Exp Supp Equip A D A P N P Unearn Rev Cap R E 12,500 2,500 450 320 0 0 180 2,900 600 8,800 3,290 Required 1 Using the accounting framework above, record each of the following transactions events March 1 Services previously sold in advance of $300 were performed March 1 Purchased equipment for $11,360 management expects it will be useful for 4 years at which time it should be worth $800 March 1 Performed $4,000 of consulting services for customers sent bill March 1 Borrowed $2,600 on a note payable March 12 Paid advertising of $640 March 18 Purchased supplies of $130 on account March 20 Received $600 from customers on account March 23 Paid utility bill of $150 March 30 Paid employee payroll of $1,400 March 30 Supplies on hand reported at $190 March 30 Insurance of $150 expired 2 Use the resulting accounting framework to prepare an income statement, statement of retained earnings and a balance sheet for the company for the month 3 Record the necessary transaction related to the equipment assuming it was sold for $10,000 on April 1 st of the same year Questions 1 what net income would the company report in its financial statements 2 what ending retained earnings would the company report in its financial statements 3 what amount of total assets would the company report in its financial statements 4 what amount of total liabilities would the company report in its financial statements 5 When Nguyen Company records the sale of equipment in the accounting framework, the transaction would include a Select (Loss on Sale Gain on Sale of Select (10,000 11,360 1,140)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 30, 2024

Nguyen & Company had the following account balances available: ? ? ? Assets ? ? = ? ? Liabilities ? ? + ? Owners' Equity

Nguyen & Company had the following account balances available:

Assets

Liabilities

Owners' Equity

Cash

A/R

Pre. Exp.

Supp.

Equip.

A/D

A/P

N/P

Unearn. Rev.

Cap.

R/E

12,500

2,500

450

320

180

2,900

600

8,800

3,290

Required:

1. Using the accounting framework above, record each of the following transactions/events:

March 1	Services previously sold in advance of $300 were performed.
March 1	Purchased equipment for $11,360; management expects it will be useful for 4 years at which time it should be worth $800.
March 1	Performed $4,000 of consulting services for customers; sent bill.
March 1	Borrowed $2,600 on a note payable.
March 12	Paid advertising of $640.
March 18	Purchased supplies of $130 on account.
March 20	Received $600 from customers on account.
March 23	Paid utility bill of $150.
March 30	Paid employee payroll of $1,400.
March 30	Supplies on hand reported at $190.
March 30	Insurance of $150 expired.

2. Use the resulting accounting framework to prepare an income statement, statement of retained earnings and a balance sheet for the company for the month.

3. Record the necessary transaction related to the equipment assuming it was sold for $10,000 on April 1^stof the same year.

Questions:

1.what net income would the company report in its financial statements?

2. what ending retained earnings would the company report in its financial statements?

3.what amount of total assets would the company report in its financial statements?

4.what amount of total liabilities would the company report in its financial statements?

5. When Nguyen & Company records the sale of equipment in the accounting framework, the transaction would include a [Select] (Loss on Sale/Gain on Sale] of [Select] (10,000/11,360/1,140) .