The September 30th balance sheet of BP Inv. Co. after adjusting entries is as follows: September...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The September 30th balance sheet of BP Inv. Co. after adjusting entries is as follows: September 30th BALANCE SHEET Current Assets Cash and cash equivalents Inventory Supplies Prepaid Insurance Non-Current Assets Equipment Accumulated depreciation (-) TOTAL ASSETS 10,900.00 Short-term liabilities 6,500.00 Accounts payable 2,000.00 Rent payable 1,500.00 1,000.00 500.00 500.00 1,900.00 Long-term liabilities 4,000.00 16,700.00 Notes payable 4,000.00 22,100.00 5,400.00 Equity 22,100.00 Capital Withdrawal Net income 24,700.00 - 2,400.00 200.00 27,600.00 TOTAL LIABILITIES AND EQUITY 27,600.00 Suppose that in the month of September, adjusting entries were made based on the following transactions: 1- A physical count of supplies at September 30th indicated that 600 TL supplies were used in September. No additional supplies were purchased in the month. 2- The amount of insurance prepaid three months ago expired in September by 300 TL. 3- Depreciation on equipment for September was 400 TL. 4- September rent for the office was 500 TL, but will not be paid until next month. 5- Beginning inventory was 6.000 TL, no additional inventory purchases were made. OTHER INFORMATION: Note that the company made inventory sales in cash during September. Interestingly, no sales were made and no expenses were incurred in August. There were no further information and no single change in the financial accounts other than the ones related to above transactions. REQUIREMENTS: 1- Prepare the adjusting entries for the month of September. (25 points) 2- Prepare the income statement for the month of September. (30 points) 3- Prepare the August 31st (previous month) balance sheet. (45 points) The September 30th balance sheet of BP Inv. Co. after adjusting entries is as follows: September 30th BALANCE SHEET Current Assets Cash and cash equivalents Inventory Supplies Prepaid Insurance Non-Current Assets Equipment Accumulated depreciation (-) TOTAL ASSETS 10,900.00 Short-term liabilities 6,500.00 Accounts payable 2,000.00 Rent payable 1,500.00 1,000.00 500.00 500.00 1,900.00 Long-term liabilities 4,000.00 16,700.00 Notes payable 4,000.00 22,100.00 5,400.00 Equity 22,100.00 Capital Withdrawal Net income 24,700.00 - 2,400.00 200.00 27,600.00 TOTAL LIABILITIES AND EQUITY 27,600.00 Suppose that in the month of September, adjusting entries were made based on the following transactions: 1- A physical count of supplies at September 30th indicated that 600 TL supplies were used in September. No additional supplies were purchased in the month. 2- The amount of insurance prepaid three months ago expired in September by 300 TL. 3- Depreciation on equipment for September was 400 TL. 4- September rent for the office was 500 TL, but will not be paid until next month. 5- Beginning inventory was 6.000 TL, no additional inventory purchases were made. OTHER INFORMATION: Note that the company made inventory sales in cash during September. Interestingly, no sales were made and no expenses were incurred in August. There were no further information and no single change in the financial accounts other than the ones related to above transactions. REQUIREMENTS: 1- Prepare the adjusting entries for the month of September. (25 points) 2- Prepare the income statement for the month of September. (30 points) 3- Prepare the August 31st (previous month) balance sheet. (45 points)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Check My Work Problem 22-15 eBook Management of Braden Boats, Inc. is considering an expansion in the firm's product line that requires the purchase of an additional $185,000 in equipment with...
-
CLASS 2 QUESTIONS A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money...
-
7) The second financial statement to prepare is the statement of retained eamings. To determine the ending balance of retained earnings you need to start with the opening balance as reported in the...
-
Shown here is a list published by Electronics Weekly.com of the top five semiconductor companies in the United States by revenue ($ billions). a. Construct a bar chart to display these data. b....
-
Why are taxpayers emphasizing multijurisdictional tax planning?
-
a) What capacity-related design considerations and demand modifications are most important to a city that is planning to build a sports arena? b) For the following 2 organizations: telephone company...
-
The direct materials efficiency variance for January is a. $500 U b. $500 F c. $750 F d. $750 U A company makes bulk cookies sold in restaurants. The following standards have been developed: Standard...
-
Why is an accurate and complete requirements definition especially critical when using the SDLC waterfall approach?
-
Problem 5-2A (Static) Record transactions related to credit sales and contra revenues (LO5-1, 5-2) Outdoor Expo provides guided fishing tours. The company charges $300 per person but offers a 20%...
-
A battery is used in a physics lab to supply 3.00 A to a circuit. A voltmeter connected in parallel across the cell reads 5 V in an open circuit (figure a) and 4.7 V in a closed circuit (figure b)...
-
Discuss the importance of networking. What are some advantages and disadvantages in using professional recruiters for networking jobs? How can you use social media in your job search? Discuss the...
-
TRL, Inc. is purchasing new computer equipment. As part of the investment project, old computer equipment is being sold. The old equipment was originally purchased three years ago. At the time of...
-
Use the following network of related activities with their duration times (weeks) to determine the project completion time (weeks)? Start A 8 Add your answer B 2 5 E 37 7 F 6 D 3 12 H 10 In your...
-
Jasmine is an adolescent 13-year-and-5-month-old biracial female. Jasmine is a strong strong-willed individual. Jasmine is very independent. Jasmine likes to listen to music. Jasmine can form...
-
Annin Laboratories uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials...
-
Required information [The following information applies to the questions displayed below.] Lydex Company's financial statements for the last two years are as follows: Lydex Company Comparative...
-
A parking lot charges $3 for the first hour (or part of an hour) and $2 for each succeeding hour (or part), up to a daily maximum of $10. (a) Sketch a graph of the cost of parking at this lot as a...
-
Three bases of position power are ____________. (a) reward, expertise, and coercive power (b) legitimate, experience, and judgment power (c) knowledge, experience, and judgment power (d) reward,...
-
What are power and influence?
-
What are the key sources of power and influence?
Strategic Communication In Business Skills Video VHS Tape 1st Edition - ISBN: 0618122052 - Free Book
Study smarter with the SolutionInn App