P1-5A Financial statement information about four different companies is as follows. Alexei Company Ramirez Company Dayan Company Viciedo Company $ 95,000 50,000 (a) $110,000 (d) 60,000 75,000 45,000 $170,000 G) 90,000 January 1, 2012 Assets Liabilities Owner's equity December 31, 2012 Assets Liabilities Owner's equity Owner's equity changes in year Additional investment Drawings Total revenues (b) 55,000 63,000 141,000 75,000 (e) 200,000 (h) 130,000 (k) 80,000 162,000 (c) 25,000 350,000 320,000 15,000 (1) 420,000 385,000 10,000 14,000 (i) 342,000 15,000 20,000 520,000 (1) Total expenses Instructions (a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets - Liabilities Owner's equity = $45,000.) (b) Prepare the owner's equity statement for Ramirez Company. (c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the owner's equity statement to the income statement and balance sheet. RE2.10 P2-2A Desiree Clark is a licensed CPA. During the first month of operations of her business, the following events and transactions occurred. May 1 Clark invested $20,000 cash in her business 2 Hired a secretary-receptionist at a salary of $2,000 per moin. 3 Purchased $2,500 of supplies on account from Read Supply Company 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $3,200 for services provided. 12 Received $3,500 advance on a management consulting engagement. 17 Received cash of $1,200 for services completed for C. Desmond Co. 31 Paid secretary-receptionist $2,000 salary for the month. 31 Paid 60% of balance due Read Supply Company, Desiree uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No 209 Unearned Service Revenue, No. 301 Owner's Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. Instructions (a) Journalize the transactions (b) Post to the ledger accounts (c) Prepare a trial balance on May 31, 2012