Reference no: EM13834700
1. A Using the accounting equation for transaction analysis
Christopher Turner started a new business, Turner Gymnastics, and completed the following transactions during December:
Dec. 1 Christopher contributed $21,000 cash in exchange for capital.
2 Received $3,500 cash from customers for services performed.
5 Paid $200 cash for office supplies.
9 Performed services for a customer and billed the customer for services rendered, $2,000.
10 Received $300 bill for utilities due in two weeks.
15 Paid for advertising in the local paper, $325.
20 Paid utility bill received on Dec. 10.
25 Collected cash from customer billed on Dec. 9.
28 Paid rent for the month, $2,000.
28 Paid $1,250 to assistant for wages.
30 Received $1,800 cash from customers for services performed.
31 Christopher withdrew $5,000 cash from the business.
2. A Preparing financial statements
Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2014.
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Land
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$ 8,000
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Owner contribution, 2014
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$ 28,000
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Notes Payable
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32,000
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Accounts Payable
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11,000
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Property Tax Expense
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2,600
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Accounts Receivable
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1,000
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Wayne, Withdrawals
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30,000
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Advertising Expense
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15,000
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Rent Expense
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13,000
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Building
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145,200
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Salaries Expense
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65,000
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Cash
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3,000
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Salaries Payable
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1,300
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Equipment
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16,000
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Service Revenue
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192,000
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Insurance Expense
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2,500
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Office Supplies
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10,000
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Interest Expense
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7,000
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Wayne, Capital, 12/31/13
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54,000
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Requirements
1. Prepare Gate City Answering Service's income statement.
2. Prepare the statement of owner's equity.
3. Prepare the balance sheet.
3. Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the medical practice completed the following transactions:
Jul. 1 Yung contributed 168.000 cash to the business in exchange for capital. 5 Paid monthly rent on medical equipment. $560.
9 Paid $16,000 cash to purchase lard to be wed in operations.
10 Purchased office supplies on accotzit 11.600.
19 Borrowed $23,000 from the bank for bushes we. Yung signed a note payable to the bank lei the name of the business.
22 Paid $1,300 on account.
28 The business received a bill for advertising In the daily newspaper to be paid In August, $240.
31 Revenues earned during the month included 16,500 cash and 15,800 on account.
31 Paid employees' salaries 12.500, office rent 11,000, and unities, $400. Record as a compound entry.
31 The business received 11,140 for medical screeNng services to be performed next month.
31 'Wing withdrew cash of $7,000.
The business uses the following accounts Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Yung, Capital; Yung. Withdrawal Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.
Requirements
1. Journalize each transaction. Explanations arc not required.
2. Post the journal entries to the accounts, using transaction dates as posting ref-erences in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balance of Vernon Yung, M.D. as ofJuly 31,2015.