P1.3A (LO 4) AP The following selected data are for Carducci Importers for its first three years of operations:
 
 

20X9

20X0

20X1

January 1:

Total assets  Total liabilities  Total owner’s equity	$ 40,000  0  (a)	$ (f)  50,000  75,000	$ (j)  (k)  (l)
December 31: Total assets  Total liabilities  Total owner’s equity	(b)  50,000  (c)	140,000  (g)  97,000	172,000  65,000  (m)
Changes during year in owner’s equity:  Investments by owner during the year  Drawings by owner during the year	7,000  15,000	0  (h)	(n)  36,000
Profit or loss for the year  Total revenues for the year  Total expenses for the year	(d)  132,000  (e)	40,000  (i)  95,000	(o)  157,000  126,000

Instructions
 Determine the missing amounts. 

E1.15 (LO 3) AP Atlantic Cruise Co. is owned by Irina Temelkova. The following information is an alphabetical listing of financial statement items for the company for the year ended May 31, 2021:

Accounts payable	$ 47,750	Interest expense	$ 20,960
Accounts receivable	42,950	Investments by owner	5,847
Advertising expense	3,640	Maintenance expense	82,870
Building	122,570	Notes payable	379,000
Cash	20,080	Other expenses	66,500
Equipment	553,300	Prepaid insurance	1,283
I. Temelkova, capital, June 1, 2020	311,182	Revenue	350,640
Temelkova, drawings	33,950	Salaries expense	126,950
Insurance expense	2,566	Supplies	16,800

Instructions
 Prepare an income statement and a statement of owner’s equity for the year.

Prepare the balance sheet.

 E1.17 (LO 3) AP Judy Cumby is the sole owner of Deer Park,  public camping ground near Gros Morne National Park. Judy has gathered the following financial information for the year ended March 31, 2021:

Revenues—camping fees $150,000 

Revenues—general store $ 40,000

Operating expenses 150,000 

Cash on hand 9,400

Supplies on hand 2,500 

The original cost of equipment 110,000

The fair value of equipment 125,000

 Notes payable 70,000

Accounts payable 11,500

J. Cumby, capital, April 1, 2020 17,000

Accounts receivable 21,000

J. Cumby, drawings 5,000

Camping fees collected for April 10,000 

Insurance paid for in advance for April to June 2021 600

Instructions
 a. Calculate Deer Park’s profit for the year.

b. Calculate Judy’s owner’s equity for the period as at March 31, 2021.

c. Prepare a balance sheet at March 31, 2021 

P1.7A (LO 3, 4, 5, 6) AP The following events concern Anita LeTourneau, a Manitoba law school graduate, for March 2021:

1. On March 4, she spent $20 on a lottery ticket.

2. On March 7, she won $250,000 in the lottery and immediately quit her job as a junior lawyer. 

3. On March 10, she decided to open her own law practice, and deposited $50,000 of her winnings in a business chequing account, LeTourneau Legal Services.

4. On March 14, she purchased a new luxury condominium with a down payment of $150,000
 from her personal funds plus a home mortgage of $200,000.

5. On March 15, Anita signed a rental agreement for her law offi ce space for $2,500 a month, starting March 15. She paid the fi rst month’s rent, as it is due on the 15th of each month.

6. On March 19, she hired a receptionist. He will be paid $500 a week and will begin working on March 24.

7. On March 20, she purchased equipment for her law practice from a company that had just declared bankruptcy. The equipment was worth at least $15,000 but Anita was able to buy it for only $10,000.

8. On March 21, she purchased $400 of supplies on account.

9. On March 24, she purchased an additional $6,500 of equipment for her law practice for $3,000 plus a $3,500 note payable due in six months.

10. On March 31, she performed $3,500 of legal services on account.

11. On March 31, she received $2,500 cash for legal services to be provided in April.

12. On March 31, she paid her receptionist $500 for the week.

13. On March 31, she paid $400 for the supplies purchased on account on March 21.

Instructions
 a. Prepare a tabular analysis of the effects of the above transactions on the accounting equation.

b. Calculate profit and owner’s equity for the month ended March 31.

c. Prepare a balance sheet at March 31. 

P1.8A (LO 4, 5, 6) AP Izabela Jach opened a medical office under the name Izabela Jach, MD, on August 1, 2021. On August 31, the balance sheet showed Cash $3,000; Accounts Receivable $1,500; Supplies $600; Equipment $7,500; Accounts Payable $5,500; Note Payable $3,000; and I. Jach, Capital, $4,100. During September, the following transactions occurred:

Sept.4  Collected $800 of accounts receivable.

5.          Provided services of $10,500, of which $7,700 was collected from patients and the remainder was on account.

7.          Paid $2,900 on accounts payable.

12.        Purchased additional equipment for $2,300, paying $800 cash and leaving the balance on account.

15.       Paid salaries, $2,800; rent for September, $1,900; and advertising expenses, $275.

18.        Collected the balance of the accounts receivable from August 31.

20.        Withdrew $1,000 for personal use.

26.        Borrowed $3,000 from the Bank of Montreal on a note payable.

28.        Signed a contract to provide medical services, not covered under the government health
 plan, to employees of CRS Corp. in October for $5,700. CRS Corp. will pay the amount
 owing after the medical services have been provided.

29.       Received the telephone bill for September, $325.

30.        Billed the government $10,000 for services provided to patients in September.

Instructions
 a. Beginning with the August 31 balances, prepare a tabular analysis of the effects of the September transactions on the accounting equation.

b. Prepare an income statement and statement of owner’s equity for September, and a balance sheet at September 30.