Survey of Accounting Packet 9 Semester Case - My Assistant, Inc. During the last three months (April, May, and June) of the first fiscal year of operations of My Assistant, a few new types transactions began to occur. These involve different ways the company is paying for some items, different ways the company is being paid, and the earning of interest. In all cases, keep in mind that economic events need to be reported when they occur (when revenues are earned and when expenses are incurred) regardless of when cash is exchanged. Assets Liabilities Item Account titles for RE Cash Acct Rec Supp. Equip Ppd. Ad. $0 Below are summaries of transactions completed during April-June. Int. Rec. $0 Fees Pay. $25 Stockholders Equity . RE Stock $100 $1,687 Acct Pay. $0 Unearn Rev. $0 Notes Pay. $200 $1,507 $490 $15 $0 Bal. 4/1 1. 2. 3. 4. 5. 6. 1. Paid the social media manager the amount owed from March. 2. Collected $490 of accounts receivable from March. 3. Purchased supplies of $100 on account. 4. Received $3,600 in exchange for completing 240 jobs, less a $180 fee due to PayPal. 5. In April, May, and June completed 140 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $1,500 of accounts receivable from April and May. 7. Purchased and used gas of $740 in order to complete jobs. 8. Paid the newspaper $600 for advertising for April - September. 9. Collected three months' worth of service fees, $174, in advance from a client with a standing appointment. Because the client is paying advance, W.T. offered a discounted rate of $14.50 per job. Services will be provided in June, July, and August. 10. Paid the social media manager $530. This amount represented her monthly fee and fee for 230 of the jobs scheduled during April, May, and June. 11. Paid friends $960 to complete 80 jobs during April, May, and June 12. Paid $75 on accounts payable. 13. Paid a salary of $1,200 to W.T. 14. Repaid W.T.'s aunt $200 of the total amount owed to her. 15. On June 30, purchased $500 of equipment to assist in the completion of jobs. 7 8. 9 10. 11. 12. Information for adjusting entries: 13. 14. 15. 16. 17. 16. As of June 30, determined that the social media manager is owed her scheduling fee for 10 jobs scheduled and completed over the last few days of the month. 17. Determined that there are $30 of supplies on hand at June 30. 18. The advance payment for advertising (Event 8) was paid on April 1 and was for advertising beginning that same day. 19. The advance payment received from the client (Event 9) was received on June 1. For this particular client, services are provided equally in each month. 20. Recognized $5 of accrued interest revenue. 18. 19. 20. Bal. 6/30 For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity and totals necessary for the balance sheet and statement of cash flow for My Assistant, Inc. for its first fiscal year (July 1 - June 30). My Assistant, Inc. Income Statement For the Year Ending June 30 My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Year Ending June 30 Common Stock Retained Earnings Total Stockholders Equity Revenues: Beginning Balance Plus: Plus: Total Revenues Less: Operating Expenses Ending Balance On its balance sheet for the current year, My Assistant should report Income Statement Work Paper: 1st and 2nd 3rd Qtr 4th Geita Total Total Assets $ Revenues: Total Liabilities $ Service Revenue $8,400 $5,310 Total Stockholders' Equity $ Interest Revenue Total Liabilities and Stockholders' Equity $ Operating Expenses: Collection fee $ 412 $191 Gas Expense 1,025 855 Personal Svc Fee 4,560 1,295 Salary Expense 1,400 1,200 Supplies Expense 0 25 600 _360 Advertising Expense Total Operating Exp. $7,997 $3,926 Investing Rec. from issuance of stock Financing Rec. Pd, for from dividends note pay. $(100) $500 Repaid note pay. No Cash Effect $0 $100 $(300) * Cash Flows Work Paper: Item Operating Pd, for Rec. from customers aber expenses 7/1- 3/31 $13,220 $(11,913) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Totals Reconciliation: Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance Ending cash balance Survey of Accounting Packet 9 Semester Case - My Assistant, Inc. During the last three months (April, May, and June) of the first fiscal year of operations of My Assistant, a few new types transactions began to occur. These involve different ways the company is paying for some items, different ways the company is being paid, and the earning of interest. In all cases, keep in mind that economic events need to be reported when they occur (when revenues are earned and when expenses are incurred) regardless of when cash is exchanged. Assets Liabilities Item Account titles for RE Cash Acct Rec Supp. Equip Ppd. Ad. $0 Below are summaries of transactions completed during April-June. Int. Rec. $0 Fees Pay. $25 Stockholders Equity . RE Stock $100 $1,687 Acct Pay. $0 Unearn Rev. $0 Notes Pay. $200 $1,507 $490 $15 $0 Bal. 4/1 1. 2. 3. 4. 5. 6. 1. Paid the social media manager the amount owed from March. 2. Collected $490 of accounts receivable from March. 3. Purchased supplies of $100 on account. 4. Received $3,600 in exchange for completing 240 jobs, less a $180 fee due to PayPal. 5. In April, May, and June completed 140 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $1,500 of accounts receivable from April and May. 7. Purchased and used gas of $740 in order to complete jobs. 8. Paid the newspaper $600 for advertising for April - September. 9. Collected three months' worth of service fees, $174, in advance from a client with a standing appointment. Because the client is paying advance, W.T. offered a discounted rate of $14.50 per job. Services will be provided in June, July, and August. 10. Paid the social media manager $530. This amount represented her monthly fee and fee for 230 of the jobs scheduled during April, May, and June. 11. Paid friends $960 to complete 80 jobs during April, May, and June 12. Paid $75 on accounts payable. 13. Paid a salary of $1,200 to W.T. 14. Repaid W.T.'s aunt $200 of the total amount owed to her. 15. On June 30, purchased $500 of equipment to assist in the completion of jobs. 7 8. 9 10. 11. 12. Information for adjusting entries: 13. 14. 15. 16. 17. 16. As of June 30, determined that the social media manager is owed her scheduling fee for 10 jobs scheduled and completed over the last few days of the month. 17. Determined that there are $30 of supplies on hand at June 30. 18. The advance payment for advertising (Event 8) was paid on April 1 and was for advertising beginning that same day. 19. The advance payment received from the client (Event 9) was received on June 1. For this particular client, services are provided equally in each month. 20. Recognized $5 of accrued interest revenue. 18. 19. 20. Bal. 6/30 For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity and totals necessary for the balance sheet and statement of cash flow for My Assistant, Inc. for its first fiscal year (July 1 - June 30). My Assistant, Inc. Income Statement For the Year Ending June 30 My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Year Ending June 30 Common Stock Retained Earnings Total Stockholders Equity Revenues: Beginning Balance Plus: Plus: Total Revenues Less: Operating Expenses Ending Balance On its balance sheet for the current year, My Assistant should report Income Statement Work Paper: 1st and 2nd 3rd Qtr 4th Geita Total Total Assets $ Revenues: Total Liabilities $ Service Revenue $8,400 $5,310 Total Stockholders' Equity $ Interest Revenue Total Liabilities and Stockholders' Equity $ Operating Expenses: Collection fee $ 412 $191 Gas Expense 1,025 855 Personal Svc Fee 4,560 1,295 Salary Expense 1,400 1,200 Supplies Expense 0 25 600 _360 Advertising Expense Total Operating Exp. $7,997 $3,926 Investing Rec. from issuance of stock Financing Rec. Pd, for from dividends note pay. $(100) $500 Repaid note pay. No Cash Effect $0 $100 $(300) * Cash Flows Work Paper: Item Operating Pd, for Rec. from customers aber expenses 7/1- 3/31 $13,220 $(11,913) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Totals Reconciliation: Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance Ending cash balance