Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Will thumbs up if correct please help!! The following accounting events apply to Mary's Designs for Year 1: Asset Source Transactions 1. Began operations by

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Will thumbs up if correct please help!!
The following accounting events apply to Mary's Designs for Year 1: Asset Source Transactions 1. Began operations by acquiring $17,000 of cash from the issue of common stock. 2. Performed services and collected cash of $800. 3. Collected $4,550 of cash in advance for services to be provided over the next 12 months. 4. Provided $10,300 of services on account. 5. Purchased supplies of $470 on account. Asset Exchange Transactions 6. Purchased $4,700 of land for cash. 7. Collected $8,200 of cash from accounts receivable. 8. Purchased $480 of supplies with cash. 9. Paid $3,900 for one year's rent in advance. Asset Use Transactions 10. Paid $3,000 cash for salaries of employees. 11. Paid a cash dividend of $1,800 to the stockholders. 12. Paid off $470 of the accounts payable with cash. Claims Exchange Transactions 13. Placed an advertisement in the local newspaper for $100 on account. 14. Incurred utility expense of $115 on account. Adjusting Entries 15. Recognized $3,413 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (Sec Event 3.) 16. Recorded $1,130 of accrued salary expense at the end of Year 1. 17. Recorded supplies expense. Had $80 of supplies on hand at the end of the accounting period. 18. Recognized three months of expense for prepaid rent that had been used up during the accounting period. Required a. Record each of the preceding events in T-accounts. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Unearned Revenue } \\ \hline Beg. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Salaries Payable } \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beg. Bal & & \multicolumn{3}{|c|}{ Common Stock } \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beg. Bal & & & \multicolumn{3}{|c|}{ Dividends } \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beg. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beg. Bal & & \multicolumn{3}{|c|}{ Advertising Expense } \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Rent Expense } \\ \hline Beg. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beg. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} b. Prepare a before-closing trial balance. c. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. The first event is recorded as an example. (Use + to indicate increase, - for decrease, or +/ - for increase and decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells require input.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting And Auditing In Europe The Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

2015th Edition

1137461330, 978-1137461339

More Books

Students also viewed these Accounting questions