Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PROBLEM: -Making an Accounting Equation Table and Financial Statements At the beginning of April, Haron Kadir launched a custom computer solutions company called Softworks.

image text in transcribed

PROBLEM: -Making an Accounting Equation Table and Financial Statements At the beginning of April, Haron Kadir launched a custom computer solutions company called Softworks. The company had the following transactions during April. 1. Haron Kadir invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company. The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a long-term note payable for $17,000. 3. The company purchased a portable building with $34,500 cash and moved it onto the land acquired in b. The company paid $5,000 cash for the premium on a two-year insurance policy. 5. The company provided services to a client and immediately collected $4,600 cash. 6. The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long-term note payable for $3,700. 7. The company completed $4,250 of services for a client. This amount is to be received within 30 days. 8. The company purchased $950 of additional office equipment on credit. The company completed client services for $10,200 on credit. 10. The company received a bill for rent of a computer testing device that was used on a recently completed job. The $320 rent cost must be paid within 30 days. 11. The company collected $5,100 cash in partial payment from the client described in transaction . 12. The company paid $1,800 cash for wages to an assistant. 13. The company paid $950 cash to settle the payable created in transaction h. 14. The company paid $608 cash for minor maintenance of the company's computer equipment. 15. H. Kadir withdrew $6,230 cash from the company for personal use. 16. The company paid $1,800 cash for wages to an assistant. 17. The company paid $750 cash for advertisements on the web during April. Required 1. Make a Table showing how these transactions impact Accounting Equation 2. Prepare an income statement 3. Prepare statement of owner's equity 4. Prepare a Balance Sheet at end of April

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

International Financial Reporting and Analysis

Authors: David Alexander, Anne Britton, Ann Jorissen

5th edition

978-1408032282, 1408032287, 978-1408075012

More Books

Students also viewed these Accounting questions

Question

Indicate identities used n cot20-1 Prove: cot 20 2cot0

Answered: 1 week ago

Question

Question 2 For an n x n matrix A = form) via (aij)

Answered: 1 week ago

Question

What are some costs of the cost-allocation process itself?

Answered: 1 week ago

Question

How should a manager decide whether to allocate costs?

Answered: 1 week ago

Question

What are some benefits of cost allocation?

Answered: 1 week ago