Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P3.OH Iggy Lion opened Lion Company on August 1, 2020. On August 31, the balance sheet showed Cash $9,000; Accounts Receivable $1,700; Supplies $600; Equipment

image text in transcribed

P3.OH Iggy Lion opened Lion Company on August 1, 2020. On August 31, the balance sheet showed Cash $9,000; Accounts Receivable $1,700; Supplies $600; Equipment $5,000; Accounts Payable $3,600; Common Stock $10,000; and Retained Earnings $2,700. During September, the following transactions occurred. Sept. 2 Paid $3,400 cash for accounts payable due. 5 Received $1,200 from customers in payment of accounts receivable. 8 Purchased additional office equipment for $5,100, paying $1,000 in cash and the balance on account. 13 Performed services worth $10,600, of which $2,300 is paid in cash and the balance is due in October. 17 Paid a $600 cash dividend. 22 Paid salaries $900, rent for September $1,100, and advertising expense $250. 26 Incurred utility expenses for the month on account $220. 30 Received $5,000 from Ben Bank on a 6-month note payable. Instructions (a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be: Cash + Accounts Receivable + Supplies - Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues - Expenses - Dividends. Include margin explanations for any changes in Retained Earnings. (b) Prepare an income statement for September, a retained earnings statement for September, and a classified balance sheet at September 30

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

Step: 3

blur-text-image

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

Process Audits And 6 Sigma Excellence To Mitigate Risk And Improve Business Performance

Authors: Mr Indulis Laimonis Svikis

1st Edition

B09M5FPYR4, 979-8769768996

More Books

Students also viewed these Accounting questions