Question One:
Prepare P1.1 on page 1-41.For a), use the practice problem on page 1-32 as a guide to what is meant by a "tabular analysis", except you do not have to write margin explanations for the equity events.In place of Instruction b. in the textbook, substitute the following:make a Statement of Comprehensive Income and a Balance Sheet for April 2019.(Recall that the Conceptual Framework uses the term "profit", not net income, so ACCTG 102 will use "profit", as well.For the Balance Sheet, use the A = L + OE format, and divide assets and liabilities into currenton-current, with subtotals for each.You should also show totals for liabilities and equity, and in the equity section, you should use a retained earnings account.Finally, use the correct headings and the proper form as discussed in class.)
Please complete the following additional instruction:
c. With respect to transaction #s 4 and 6, use a residual analysis for each to explain which accounts were increased and/or decreased and why.
P1 . 1 ( 1.0 3 , 4) On April 1 , Julie Chen established Miaoli's Travel Agency . The following transactions were completed during the month . Analyze transactions and compute net income . 1 . Shareholders invested NT$ 15 , 000 cash in the business in exchange for ordinary shares .* 2 . Paid NT$ 600 cash for April office rent . 3 . Purchased equipment for NT$ 3, 000 cash . 4. Incurred NT$ 700 of advertising costs for Facebook ads , on account . 5 . Paid NT$ goo cash for office supplies . 6 . Performed services worth NT$ 10 , 000 : NI'S 3 , 000 cash is received from customers , and the balance of NT$7 , 000 is billed to customers on account . 7 . Declared and paid NT$GOO dividend . 8 . Paid Facebook NT $ 500 of the amount due in transaction ( 4 ) . 9 . Paid employees' salaries NT $ 2, 500 . 10 . Received NT$ 4 , 000 in cash from customers who have previously been billed in transaction ( 6 ) . Check figures provide a key number to let you know you are on the right track . Instructions 2 . Prepare a tabular analysis of the transactions using the following column headings : Cash , Accounts Receivable , Supplies , Equipment , Accounts Payable , Share Capital - Ordinary , Revenues , Expenses , and Dividends . Total assets NT $ 20 , 800 bo . From an analysis of the retained earnings columns , compute the net income or net loss for April . Net income NT $ 6 , 200Decision-Making Across the Organization CT1.4 Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range Ltd. on March 1, 2020, investing 25,000 of their cash savings in the business in exchange for ordinary shares. A caddy shack was constructed for cash at a cost of 8,000, and 800 was spent on golf balls and golf clubs. The company leased ve acres of land at a cost of 1,000 per month and paid the rst month's rent. During the rst month, advertising costs totaled 750, of which 100 was unpaid at March 31, and 500 was paid to members of the high-school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March 15, the company paid a total of 1,000 in dividends. A 120 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was 18,900. Anya and Nick thought they had a pretty good rst month of operations. But, their estimates of protability ranged from a loss of 6,100 to net income of 2,480. Instructions With the class divided into groups, answer the following. a. How could the Ramons have concluded that the company operated at a loss of 6,100? Was this a valid basis on which to determine net income? b. How could the Ramons have concluded that the company operated at a net income of 2,480? (Hint: Prepare a statement of nancial position at March 31.) Was this a valid basis on which to determine net income? c. Without preparing an income statement, determine the actual net income for March. (1. What was the revenue recognized in March
