Reference no: EM131660428
Assignment
Complete the following exercises and problems in Excel:
I. AUsing 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.9Performed 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, $325.20Paid 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.
Total Assets $19,425
Analyze the effects of the transactions on the accounting equation of Turner Gymnastics using a format similar to Exhibit 1-4 (See attached).
II. A Preparing financial statements
• Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2014.
Land- $ 8,000Owner contribution, 2014- $ 28,000
Notes Payable- $32,000Accounts Payable- $11,000
Property Tax Expense- 2,600Accounts Receivable1,000
Wayne, Withdrawals- 30,000Advertising Expense- 15,000
Rent Expense13,000Building145,200
Salaries Expense65,000Cash3,000
Salaries Payable1,300Equipment16,000
Service Revenue192,000Insurance Expense2,500
Office Supplies10,000Interest Expense7,000
Wayne, Capital, 12/31/1354,000
Net Income $86,900
Requirements
1. Prepare Gate City Answering Service's income statement.
2. Prepare the statement of owner's equity.
3. Prepare the balance sheet.
III. A Journalizing transactions, posting journal entries to T-accounts, and preparing atrial balance Vernon Yung practices medicine under the business title Vernon Yung, M.D. During July, the medical practice completed the following transactions:
Jul. 1Yung contributed $68,000 cash to the business in exchange for capital.
5. Paid monthly rent on medical equipment, $560.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1,600.
19. Borrowed $23,000 from the bank for business use. Yung signed a note payable to the bank in 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 $6,500 cash and $5,800 on account.
31. Paid employees' salaries $2,500, office rent $1,000, and utilities, $400. Record as a compound entry.
31. The business received $1,140 for medical screening services to be performed next month.
31. Yung withdrew cash of $7,000.
Cash Balance $69,880
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Yung, Capital; Yung, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.
Requirements
1. Journalize each transaction. Explanations are not required.
2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balance of Vernon Yung, M.D. as of July 31, 2015.
Attachment:- Post-Problem.rar