Question
Please help me with this. I am not sure about any of my answers and I have left a few blank. Your help is greatly
Please help me with this. I am not sure about any of my answers and I have left a few blank. Your help is greatly appreciated.
7. Each of the accounting events shown below took place during the year for Maid Brigade Cleaning Inc.
Using the table below, specify the $ amount effect of each event on the assets, liabilities and owners equity of the firm. Use + for increases or < > for decreases. Write in the specific asset, liability or owner's equity line item that would be influenced. Some events may not be accounting events.
Determine the total assets, liabilities, and owners equity that would appear on the Balance Sheet at the end of the period.
Determine the net income that would appear on the Income Statement for the period.
| Owners Equity | |||||
-Retained Earnings- | Capital Stock | |||||
Event | Assets | Liabilities | Revenue | (Expense) | (Dividend) |
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a. | 10000 cash 800 furniture |
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| 10800 |
b. | 1800 supplies (1800) cash |
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c. |
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d. | Not an accounting event |
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e. | (40) cash |
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| (40) |
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f. | 6000 cash | N/P 6000 |
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g. |
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h. |
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i. |
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j. | 2600 painting | A/p 2600 |
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k. | (2600) cash | A/P (2600) |
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l. | (20) cash |
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| (20) |
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m. |
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n. |
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o. | 1240. cash |
| 1240. |
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p. | 3000 A/R |
| 3000 |
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q. |
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Totals |
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a.Carol, the sole stockholder, puts $10,000 cash, plus a desk worth $800 into the business taking back stock for the total. |
b. Made an $1,800 purchase of cleaning supplies for use in the business. |
c. Signed a contract to perform cleaning services for Accent Company for a total of $4,000. |
d. Hired two cleaning associates to be paid $10 per hour. |
e. Placed an ad in the local paper paying cash $40. |
f. Borrowed $6,000 cash from the Last State Bank. |
g. Performed one half of the cleaning services for Accent in c. above, sent them a bill. |
h.The cleaning associates worked 60 hours in performing the cleaning services in g. above. They will be paid at the end of the pay period. |
i. Signed a contract with a painting firm to come in and repaint the office, cost to be $2,600. |
j. Painters come in and complete all the painting of the office, sending Carol a bill. |
k. Decided to pay the bill from the painters. |
l. Payday! Paid the associates. |
m. An inspection reveals that we have used $1,200 of the supplies purchased in b. above. |
n. Received payment from Accent in g. above. |
o. Performed cleaning services for Acco Equipment Co, paid in cash, $1,240. |
p. Performed cleaning services for Hilton Gardner Consulting Group, $3,000, billed them. |
q. Carol was paid $150 as a dividend.
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