Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2: 40 points Danielle Dog is the sole stockholder in a modeling agency called Dog, the Beauty Hunter, Inc. Below are transactions which occurred

image text in transcribed
image text in transcribed
image text in transcribed
Problem 2: 40 points Danielle Dog is the sole stockholder in a modeling agency called Dog, the Beauty Hunter, Inc. Below are transactions which occurred in the operation of the company during the month of June. On the next page, record each transaction on the worksheet that has been supplied for this purpose. There is no need to total all of the columns. June 1 June 4 June 10 June 18 June 20 June 27 Beauty Hunter, Inc. purchased equipment at a cost of $24,000, making a cash down payment of $5,000 and placing the balance on account. Performed consulting services for a client on account, $18,000. Danielle Dog purchased stock in the Beauty Hunter, Inc. for $19,000. A customer paid $13,000 to Beauty Hunter, Inc. that was previously on account. Paid salary of assistant, $4,000. Paid $1,600 to the bank, of which $100 was interest and the rest was a repayment of the loan. Beauty Hunter, Inc. paid Danielle Dog a dividend of $1,000. An adjustment was made: The equipment depreciated $500 for the month. June 30 June 30 Date Cash Dog. the Beauty Hunter, Inc. Integrated Financial Statements Assets Accounts Prepaid Supplies Equipment Accumulated Receivable Insurance Depreciation Equipment Liabilities Accounts Notes Payable Payable Shareholders' Equity Capital Retained Stock Earnings 6/1 6/10 6/18 6/20 6/27 6/30 I 6/30 Problem 3: 15 points Refer to the accounting record that you completed in Problem #2. A) Suppose Dog, the Beauty Hunter, Inc. accountant neglected to make the adjustment for depreciation. What would be the effect on the income statement for the month of June? Be specific in a few sentences. (5 points) B) Suppose Dog, the Beauty Hunter, Inc. accountant neglected to make the adjustment for depreciation. What would be the effect on the statement of cash flows for the month of June? Be specific in a sentence or two. (5 points) C) What amount do customers owe Dog, the Beauty Hunter, Inc. at the end of June? (3 points) D) Which of the financial statements are affected by the payment of dividends to a corporation's shareholders: the income statement, statement of retained earnings, balance sheet, or the statement of cash flows? (2 points)

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

Principles Of Financial Accounting Chapters 1 To 18

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

12th Edition

9781118978740

More Books

Students also viewed these Accounting questions