Reference no: EM131289373
1. Prepare an Income Statement, Equity Statement, and Balance Sheet
2. Prepare closing entries in the General Journal for the month of October.
October Transactions
October 1 the owner invested $40,000 cash in the business
October 1 purchased equipment for $15,000 on account.
October 1 purchased a 4-year insurance policy to insure the business for $2000
For cash.
October 2 Paid $2000 cash for supplies.
October 4 received $3,000 cash from customers for services rendered
October 14 Paid for the equipment purchase on October 1.
October 15 Paid wages $1,750
October 16 Performed services worth $4,500 for credit customers
October 20 Received $1,400 cash from customers previously billed on account
October 22 the owner withdrew $3,400 cash for personal use
October 31 Paid utility bill for October $500.
|
The accountant at a fabricating plant
: Assume that you are the accountant at a fabricating plant. One of the vice presidents has asked you why one of the pieces of equipment used in the plant is shown at its original cost in the asset accounts. What is your response to that question?
|
|
Implications of both capital lease and operating lease
: What are the implications of both a capital lease and operating lease on the balance sheet and income statement? In other words, how does each lease type affect these two financial statements? Justify your reasoning.
|
|
Balance in the income summary account is a credit
: When the balance in the Income Summary account is a credit, the company has:
|
|
The correct order for closing accounts
: Which of the following accounts will be directly closed to Capital at the end of the fiscal year? The correct order for closing accounts is:
|
|
Prepare an income statement and equity statement
: Prepare an Income Statement, Equity Statement, and Balance Sheet. Prepare closing entries in the General Journal for the month of October.
|
|
How do differences in culture-social value-political systems
: In some cases parent-entity financial statements may be needed, in addition to consolidated financial statements, to indicate adequately the position of bondholders and other creditors or preferred shareholders of the parent. How do differences in cu..
|
|
What is the book value of the equipment
: Equipment with a cost of $250,000 has an accumulated depreciation of $50,000. What is the book value of the equipment? Accounts in which the balances are carried over from one accounting period to the next are called: At the end of its fiscal year, t..
|
|
The cost of an asset less accumulated depreciation equals
: If the balance of supplies at the start of the month was $700 and at the end of the month you had $250 on hand, the adjustment for Supplies would be: The cost of an asset less accumulated depreciation equals:
|
|
What is the total interest expense and the interest payable
: Morrison Corporation borrowed? $45,000 from Commercial Bank on June 1 of the current year. The bank required? 9% interest. Interest will be paid every three months until the? 9-month note is paid. What is the total Interest Expense and the Interest P..
|