See Attached.

1. Record transactions and calculate financial statement amounts. The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations. Prepare an answer sheet with the columns shown. Record each transaction in the appropriate columns of your answer sheet. Show the amounts involved and indicate how each account is affected (+ or -). After all transactions have been recorded, calculate the total assets, liabilities, and owners' equity at the end of the month and calculate the amount of net income for the month. a. The firm was organized and the owners invested cash of $600. b. The company borrowed $900 from a relative of the owners; a short-term note was signed. c. Two lawn mowers costing $480 each and a trimmer costing $130 were purchased for cash. The original list price of each mower was $610, but a discount was received because the seller was having a sale. d. Gasoline, oil, and several packages of trash bags were purchases for cash of $90. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $170, were paid in 30 days. f. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $705; $465 was collected in cash and the balance will be received within 30 days. g. Employees were paid $420 for their work during the first two weeks. h. Additional gasoline, oil, and trash bags costing $110 were purchased for cash. i. In the last two weeks of the first month, revenues totaled $920, of which $375 was collected. j. Employee wages for the last two weeks totaled $510; these will be paid during the first week of the next month. k. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $30. l. Customers paid a total of $150 due from mowing services provided during the first two weeks. The revenue for these services were recognized in transactions f. Answer sheet: Assets = Liabilities + Owner's equity Accounts Notes Accounts Paid-in Retained Transaction: Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital + Revenues - Expenses 2. Prepare an income statement and balance sheet. After you have completed parts a. through l. in Number 1 prepare an income statement for Cardinal Mowing Services, Inc., for the month presented and a balance sheet at the end of the month using the captions shown on the answer sheet. 3. Record transactions and adjustments. Enter the following column headings across the top of a sheet of paper: Transaction/ Situation Assets Liabilities Owners' Equity Net Income Enter the transaction/situation letter in the first column and show the effect, if any of the transaction entry or adjustment on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting owners' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration. (Note: As an alternative to using the columns, you may write the journal entry for each transaction or adjustment). a. During the month, Supplies Expense was debited $2,600 for supplies purchased. The cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. b. Independent of transaction a. assume that during the month, Supplies (asset) was debited $2,600 for supplies purchased. The total cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies stll on hand at the end of the month. c. Received $1,700 of cash from clients for services provided during the current month. d. Paid $950 of accounts payable. e. Received $750 of cash from clients for revenues accrued at the end of the prior month. f. Received $400 of interest income accrued at the end of the prior month. g. Received $825 of interest income for the current month. h. Accrued $370 of interest income earned in the current month. i. Paid $2,100of interest expense for the current month. j. Accrued $740 of interest expense at the end of the current month. k. Accrued $1,600 of commissions payable to sales staff for the current month. Transaction/ Owners' Net Situation Assets Liabilities Equity Income a. +700 +700 4. Effects of adjustments. A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $47,400, and the balance sheet showed ending retained earnings of $182,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $10,000 and increase expenses by $16,800. Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. 5. Transaction analysis using T-accounts. This exercise provides practice in understanding the operation of Taccounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare journal entries for the information provided. In each case, there is only one debit entry and one credit entry in the amount during the month. a. Accounts Receivable had a balance of $5,400 at the beginning of the month and $2,200 at the end of the month. Credit sales totaled $30,000 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account. b. The Supplies account had a balance of $1,460 at the beginning of the month and $1,940 at the end of the c. month. The cost of supplies used during the month was $6,320. Calculate the cost of supplies purchased during the month. Wages Payable had a balance of $1,520 at the beginning of the month. During the month, $6,200 of wages were paid to employees. Wages Expense accrued during the month totaled $7,800. Calculate the balance of Wages Payable at the end of the month. Example: Accounts Payable had a balance of $6,000 at the beginning of the month and $5,400 at the end of the month. During the month, payments to suppliers amounted to $16,000. Calculate the purchases on account during the month. Solution: Accounts Payable Payment 16,000 Beginning balance 6,000 Purchase ? = 15,400 Dr. Accounts payable 16,000 Cr. Cash Ending balance Payments to suppliers. 5,400 16,000 Dr. Inventory 15,400 Cr. Accounts Payable Purchases on account. 15,400 1. Record transactions and calculate financial statement amounts. The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations. Prepare an answer sheet with the columns shown. Record each transaction in the appropriate columns of your answer sheet. Show the amounts involved and indicate how each account is affected (+ or -). After all transactions have been recorded, calculate the total assets, liabilities, and owners' equity at the end of the month and calculate the amount of net income for the month. a. The firm was organized and the owners invested cash of $600. b. The company borrowed $900 from a relative of the owners; a short-term note was signed. c. Two lawn mowers costing $480 each and a trimmer costing $130 were purchased for cash. The original list price of each mower was $610, but a discount was received because the seller was having a sale. d. Gasoline, oil, and several packages of trash bags were purchases for cash of $90. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $170, were paid in 30 days. f. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $705; $465 was collected in cash and the balance will be received within 30 days. g. Employees were paid $420 for their work during the first two weeks. h. Additional gasoline, oil, and trash bags costing $110 were purchased for cash. i. In the last two weeks of the first month, revenues totaled $920, of which $375 was collected. j. Employee wages for the last two weeks totaled $510; these will be paid during the first week of the next month. k. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $30. l. Customers paid a total of $150 due from mowing services provided during the first two weeks. The revenue for these services were recognized in transactions f. Answer sheet: Assets = Liabilities + Owner's equity Accounts Notes Accounts Paid-in Retained Transaction: Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital + Revenues - Expenses 2. Prepare an income statement and balance sheet. After you have completed parts a. through l. in Number 1 prepare an income statement for Cardinal Mowing Services, Inc., for the month presented and a balance sheet at the end of the month using the captions shown on the answer sheet. 3. Record transactions and adjustments. Enter the following column headings across the top of a sheet of paper: Transaction/ Situation Assets Liabilities Owners' Equity Net Income Enter the transaction/situation letter in the first column and show the effect, if any of the transaction entry or adjustment on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting owners' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration. (Note: As an alternative to using the columns, you may write the journal entry for each transaction or adjustment). a. During the month, Supplies Expense was debited $2,600 for supplies purchased. The cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. b. Independent of transaction a. assume that during the month, Supplies (asset) was debited $2,600 for supplies purchased. The total cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies stll on hand at the end of the month. c. Received $1,700 of cash from clients for services provided during the current month. d. Paid $950 of accounts payable. e. Received $750 of cash from clients for revenues accrued at the end of the prior month. f. Received $400 of interest income accrued at the end of the prior month. g. Received $825 of interest income for the current month. h. Accrued $370 of interest income earned in the current month. i. Paid $2,100of interest expense for the current month. j. Accrued $740 of interest expense at the end of the current month. k. Accrued $1,600 of commissions payable to sales staff for the current month. Transaction/ Owners' Net Situation Assets Liabilities Equity Income a. +700 +700 4. Effects of adjustments. A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $47,400, and the balance sheet showed ending retained earnings of $182,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $10,000 and increase expenses by $16,800. Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. 5. Transaction analysis using T-accounts. This exercise provides practice in understanding the operation of Taccounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare journal entries for the information provided. In each case, there is only one debit entry and one credit entry in the amount during the month. a. Accounts Receivable had a balance of $5,400 at the beginning of the month and $2,200 at the end of the month. Credit sales totaled $30,000 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account. b. The Supplies account had a balance of $1,460 at the beginning of the month and $1,940 at the end of the c. month. The cost of supplies used during the month was $6,320. Calculate the cost of supplies purchased during the month. Wages Payable had a balance of $1,520 at the beginning of the month. During the month, $6,200 of wages were paid to employees. Wages Expense accrued during the month totaled $7,800. Calculate the balance of Wages Payable at the end of the month. Example: Accounts Payable had a balance of $6,000 at the beginning of the month and $5,400 at the end of the month. During the month, payments to suppliers amounted to $16,000. Calculate the purchases on account during the month. Solution: Accounts Payable Payment 16,000 Beginning balance 6,000 Purchase ? = 15,400 Dr. Accounts payable 16,000 Cr. Cash Ending balance Payments to suppliers. 5,400 16,000 Dr. Inventory 15,400 Cr. Accounts Payable Purchases on account. 15,400 1. Record transactions and calculate financial statement amounts. The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations. Prepare an answer sheet with the columns shown. Record each transaction in the appropriate columns of your answer sheet. Show the amounts involved and indicate how each account is affected (+ or -). After all transactions have been recorded, calculate the total assets, liabilities, and owners' equity at the end of the month and calculate the amount of net income for the month. a. The firm was organized and the owners invested cash of $600. b. The company borrowed $900 from a relative of the owners; a short-term note was signed. c. Two lawn mowers costing $480 each and a trimmer costing $130 were purchased for cash. The original list price of each mower was $610, but a discount was received because the seller was having a sale. d. Gasoline, oil, and several packages of trash bags were purchases for cash of $90. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $170, were paid in 30 days. f. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $705; $465 was collected in cash and the balance will be received within 30 days. g. Employees were paid $420 for their work during the first two weeks. h. Additional gasoline, oil, and trash bags costing $110 were purchased for cash. i. In the last two weeks of the first month, revenues totaled $920, of which $375 was collected. j. Employee wages for the last two weeks totaled $510; these will be paid during the first week of the next month. k. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $30. l. Customers paid a total of $150 due from mowing services provided during the first two weeks. The revenue for these services were recognized in transactions f. Answer sheet: Assets = Liabilities + Owner's equity Accounts Notes Accounts Paid-in Retained Transaction: Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital + Revenues - Expenses 2. Prepare an income statement and balance sheet. After you have completed parts a. through l. in Number 1 prepare an income statement for Cardinal Mowing Services, Inc., for the month presented and a balance sheet at the end of the month using the captions shown on the answer sheet. 3. Record transactions and adjustments. Enter the following column headings across the top of a sheet of paper: Transaction/ Situation Assets Liabilities Owners' Equity Net Income Enter the transaction/situation letter in the first column and show the effect, if any of the transaction entry or adjustment on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting owners' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration. (Note: As an alternative to using the columns, you may write the journal entry for each transaction or adjustment). a. During the month, Supplies Expense was debited $2,600 for supplies purchased. The cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. b. Independent of transaction a. assume that during the month, Supplies (asset) was debited $2,600 for supplies purchased. The total cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies stll on hand at the end of the month. c. Received $1,700 of cash from clients for services provided during the current month. d. Paid $950 of accounts payable. e. Received $750 of cash from clients for revenues accrued at the end of the prior month. f. Received $400 of interest income accrued at the end of the prior month. g. Received $825 of interest income for the current month. h. Accrued $370 of interest income earned in the current month. i. Paid $2,100of interest expense for the current month. j. Accrued $740 of interest expense at the end of the current month. k. Accrued $1,600 of commissions payable to sales staff for the current month. Transaction/ Owners' Net Situation Assets Liabilities Equity Income a. +700 +700 4. Effects of adjustments. A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $47,400, and the balance sheet showed ending retained earnings of $182,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $10,000 and increase expenses by $16,800. Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. 5. Transaction analysis using T-accounts. This exercise provides practice in understanding the operation of Taccounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare journal entries for the information provided. In each case, there is only one debit entry and one credit entry in the amount during the month. a. Accounts Receivable had a balance of $5,400 at the beginning of the month and $2,200 at the end of the month. Credit sales totaled $30,000 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account. b. The Supplies account had a balance of $1,460 at the beginning of the month and $1,940 at the end of the c. month. The cost of supplies used during the month was $6,320. Calculate the cost of supplies purchased during the month. Wages Payable had a balance of $1,520 at the beginning of the month. During the month, $6,200 of wages were paid to employees. Wages Expense accrued during the month totaled $7,800. Calculate the balance of Wages Payable at the end of the month. Example: Accounts Payable had a balance of $6,000 at the beginning of the month and $5,400 at the end of the month. During the month, payments to suppliers amounted to $16,000. Calculate the purchases on account during the month. Solution: Accounts Payable Payment 16,000 Beginning balance 6,000 Purchase ? = 15,400 Dr. Accounts payable 16,000 Cr. Cash Ending balance Payments to suppliers. 5,400 16,000 Dr. Inventory 15,400 Cr. Accounts Payable Purchases on account. 15,400 1. Record transactions and calculate financial statement amounts. The following are the transactions relating to the formation of Cardinal Mowing Services, Inc., and its first month of operations. Prepare an answer sheet with the columns shown. Record each transaction in the appropriate columns of your answer sheet. Show the amounts involved and indicate how each account is affected (+ or -). After all transactions have been recorded, calculate the total assets, liabilities, and owners' equity at the end of the month and calculate the amount of net income for the month. a. The firm was organized and the owners invested cash of $600. b. The company borrowed $900 from a relative of the owners; a short-term note was signed. c. Two lawn mowers costing $480 each and a trimmer costing $130 were purchased for cash. The original list price of each mower was $610, but a discount was received because the seller was having a sale. d. Gasoline, oil, and several packages of trash bags were purchases for cash of $90. e. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $170, were paid in 30 days. f. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $705; $465 was collected in cash and the balance will be received within 30 days. g. Employees were paid $420 for their work during the first two weeks. h. Additional gasoline, oil, and trash bags costing $110 were purchased for cash. i. In the last two weeks of the first month, revenues totaled $920, of which $375 was collected. j. Employee wages for the last two weeks totaled $510; these will be paid during the first week of the next month. k. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $30. l. Customers paid a total of $150 due from mowing services provided during the first two weeks. The revenue for these services were recognized in transactions f. Answer sheet: Assets = Liabilities + Owner's equity Accounts Notes Accounts Paid-in Retained Transaction: Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital + Revenues - Expenses 2. Prepare an income statement and balance sheet. After you have completed parts a. through l. in Number 1 prepare an income statement for Cardinal Mowing Services, Inc., for the month presented and a balance sheet at the end of the month using the captions shown on the answer sheet. 3. Record transactions and adjustments. Enter the following column headings across the top of a sheet of paper: Transaction/ Situation Assets Liabilities Owners' Equity Net Income Enter the transaction/situation letter in the first column and show the effect, if any of the transaction entry or adjustment on the appropriate balance sheet category or on the income statement by entering the amount and indicating whether it is an addition (+) or a subtraction (-). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting owners' equity. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Transaction a has been completed as an illustration. (Note: As an alternative to using the columns, you may write the journal entry for each transaction or adjustment). a. During the month, Supplies Expense was debited $2,600 for supplies purchased. The cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. b. Independent of transaction a. assume that during the month, Supplies (asset) was debited $2,600 for supplies purchased. The total cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies stll on hand at the end of the month. c. Received $1,700 of cash from clients for services provided during the current month. d. Paid $950 of accounts payable. e. Received $750 of cash from clients for revenues accrued at the end of the prior month. f. Received $400 of interest income accrued at the end of the prior month. g. Received $825 of interest income for the current month. h. Accrued $370 of interest income earned in the current month. i. Paid $2,100of interest expense for the current month. j. Accrued $740 of interest expense at the end of the current month. k. Accrued $1,600 of commissions payable to sales staff for the current month. Transaction/ Owners' Net Situation Assets Liabilities Equity Income a. +700 +700 4. Effects of adjustments. A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $47,400, and the balance sheet showed ending retained earnings of $182,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $10,000 and increase expenses by $16,800. Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. 5. Transaction analysis using T-accounts. This exercise provides practice in understanding the operation of Taccounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare journal entries for the information provided. In each case, there is only one debit entry and one credit entry in the amount during the month. a. Accounts Receivable had a balance of $5,400 at the beginning of the month and $2,200 at the end of the month. Credit sales totaled $30,000 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account. b. The Supplies account had a balance of $1,460 at the beginning of the month and $1,940 at the end of the c. month. The cost of supplies used during the month was $6,320. Calculate the cost of supplies purchased during the month. Wages Payable had a balance of $1,520 at the beginning of the month. During the month, $6,200 of wages were paid to employees. Wages Expense accrued during the month totaled $7,800. Calculate the balance of Wages Payable at the end of the month. Example: Accounts Payable had a balance of $6,000 at the beginning of the month and $5,400 at the end of the month. During the month, payments to suppliers amounted to $16,000. Calculate the purchases on account during the month. Solution: Accounts Payable Payment 16,000 Beginning balance 6,000 Purchase ? = 15,400 Dr. Accounts payable 16,000 Cr. Cash Ending balance Payments to suppliers. 5,400 16,000 Dr. Inventory 15,400 Cr. Accounts Payable Purchases on account. 15,400