The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May Revenue $2,540 Expenses: Rent Expense $500 Advertising Expense $500 Wages Expense $200 $1,200 Net Income $1,340 TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY Owner's Equity at May 1 So plus: Investment 12,000 plus: Net Income 1,340 less: Withdrawals Owner's Equity at May 31 $3,340 0 TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 ASSETS LIABILITES AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash $1,380 Accounts Payable $300 Accounts Receivable $1,500 Advertising Payable $500 Prepaid Rent $ 500 Advances from Customers $200 Prepaid Advertising $ 500 Supplies $ 100 $3,9801 Equipment |$ 360 Owner's Equity $3,3401 Total Assets $4,340 Total Liabilities & OE $4,340 During June the following transactions occurred: 1) Completed a job for which the customer paid $500 in June. The invoice is for $1000. 2) Hire a helper and paid $1,000 for works done. 3) Paid $500 for the rent of July. 4) Purchased supplies for $500. At the end of June notices that there are $500 of supplies left. 5) Orders new flyers for advertising. They will be ready in July but the printer asked to be paid in advance $100. 6) In June collected in cash $1,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers. 7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. 7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. 8) Received an advancement of $2,000 from a customer for a job to be done in August. 9) Asked for a 5 years loan in the local bank for $4,000 and got it in June 7th. 10) with the money of the loan purchased equipment for $4,200 It is expected that the equipment will last 5 years. Prepare "T" Accounts in CASH Basis for the period ended on June 30th and then answer the questions. At the end of the accounting period (June 30th, T account after AJE), what is the total of Owners Equity? Between $1,500 and $1,999 Less than $1,000 Between $1,000 and $1,499 Between $2,000 and $3,000 More than $3,000 The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY -INCOME STATEMENT FOR the month of May Revenue $2.540 Expenses: Rent Expense $500 Advertising Expense $500 Wages Expense $200 $1,200 Net Income $1,340 TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY Owner's Equity at May $o plus: Investment 2.000 plus: Net Income 1,340 less: Withdrawals 10 Owner's Equity at May 31 $3,340 TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 JASSETS LIABILITES AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash $1,380 Accounts Payable $300 Accounts Recelvable $1,500 Advertising Payable $500 Prepaid Rent $ 500 Advances from Customers $200 Prepaid Advertising $ 500 Supplies $3.980 Equipment |$ 360 Owner's Equity $3,340 Total Assets $4,340 Total Liabilities & OE $4,340 1$ 100 During June the following transactions occurred: Paid the helper the $200 owed from works done in May (the amount owed is in Accounts Payable). Completed the job for which the customer paid $200 in May. Tops in Topiary collected $1000 in cash once finished. Paid $500 for the rent of July. At the end of June notices that there are no supplies left. Makes a note to buy some in July. At the end of June notices that there are few flyers left (used for advertising) worth $100 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $500 of the amount owed for the flyers done in May. Tops in Topiary pays $500. In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers. In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers. In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($3,000). Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the question. At the end of the accounting period (June 30th, T account after AJE), what is the Net income/Net Loss? Between $4,500 and $5,000 more than $5,000 Between $4,000 and $4,499* less than $3,000 Between $3,000 and $3,999 The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May Revenue $2,540 Expenses: Rent Expense $500 Advertising Expense $500 Wages Expense $200 $1,200 Net Income $1,340 TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY Owner's Equity at May 1 So plus: Investment 12,000 plus: Net Income 1,340 less: Withdrawals Owner's Equity at May 31 $3,340 0 TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 ASSETS LIABILITES AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash $1,380 Accounts Payable $300 Accounts Receivable $1,500 Advertising Payable $500 Prepaid Rent $ 500 Advances from Customers $200 Prepaid Advertising $ 500 Supplies $ 100 $3,9801 Equipment |$ 360 Owner's Equity $3,3401 Total Assets $4,340 Total Liabilities & OE $4,340 During June the following transactions occurred: 1) Completed a job for which the customer paid $500 in June. The invoice is for $1000. 2) Hire a helper and paid $1,000 for works done. 3) Paid $500 for the rent of July. 4) Purchased supplies for $500. At the end of June notices that there are $500 of supplies left. 5) Orders new flyers for advertising. They will be ready in July but the printer asked to be paid in advance $100. 6) In June collected in cash $1,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers. 7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. 7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. 8) Received an advancement of $2,000 from a customer for a job to be done in August. 9) Asked for a 5 years loan in the local bank for $4,000 and got it in June 7th. 10) with the money of the loan purchased equipment for $4,200 It is expected that the equipment will last 5 years. Prepare "T" Accounts in CASH Basis for the period ended on June 30th and then answer the questions. At the end of the accounting period (June 30th, T account after AJE), what is the total of Owners Equity? Between $1,500 and $1,999 Less than $1,000 Between $1,000 and $1,499 Between $2,000 and $3,000 More than $3,000 The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY -INCOME STATEMENT FOR the month of May Revenue $2.540 Expenses: Rent Expense $500 Advertising Expense $500 Wages Expense $200 $1,200 Net Income $1,340 TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY Owner's Equity at May $o plus: Investment 2.000 plus: Net Income 1,340 less: Withdrawals 10 Owner's Equity at May 31 $3,340 TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 JASSETS LIABILITES AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash $1,380 Accounts Payable $300 Accounts Recelvable $1,500 Advertising Payable $500 Prepaid Rent $ 500 Advances from Customers $200 Prepaid Advertising $ 500 Supplies $3.980 Equipment |$ 360 Owner's Equity $3,340 Total Assets $4,340 Total Liabilities & OE $4,340 1$ 100 During June the following transactions occurred: Paid the helper the $200 owed from works done in May (the amount owed is in Accounts Payable). Completed the job for which the customer paid $200 in May. Tops in Topiary collected $1000 in cash once finished. Paid $500 for the rent of July. At the end of June notices that there are no supplies left. Makes a note to buy some in July. At the end of June notices that there are few flyers left (used for advertising) worth $100 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $500 of the amount owed for the flyers done in May. Tops in Topiary pays $500. In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers. In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers. In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($3,000). Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the question. At the end of the accounting period (June 30th, T account after AJE), what is the Net income/Net Loss? Between $4,500 and $5,000 more than $5,000 Between $4,000 and $4,499* less than $3,000 Between $3,000 and $3,999