Gb 518 unit 01 p1-1a, p1-8a j.d. simpson, p2-3a fabiano distribution

P1-1A

Complete the following by inserting either a “+” or a “-” sign in the appropriate cell.If the transactions both increases and decreases a column, use a “+ / -“.  The first transaction is complete for you as an example.

 

TransactionTransaction Total Total Total NetOperatingFinancingInvesting

AssetsLiabilitiesEquityIncomeActivityActivityActivity

 

NumberDescription

1Owner invests cash in exchange for stock

2Incurs legal costs on credit

3Pays cash for employee wages

4Borrows cash by signing long-term note payable

5Receives cash for services provided

6Buys land by signing note payable

7Buys office equipment for cash

8Provides services on credit

9Collects cash on receivable from transaction (8)

10Pays cash dividend

 

P1-8A

J. D. Simpson started The Simpson Co., a new business that began operations on May 1. The Simpson Co. completed the following transactions during its first month of operations.

 

May 1  J. D.Simpson invested $60,000 cash in the company in exchange for common stock.

       1  The company rented a furnished office and paid $3,200 cash for May’s rent.

       3  The company purchased $1,680 of office equipment on credit.

       5  The company paid $800 cash for this month’s cleaning services.

       8  The company provided consulting services for a client and immediately collected $4,600 cash.

     12  The company provided $3,000 of consulting services for a client on credit.

     15  The company paid $850 cash for an assistant’s salary for the first half of this month.

     20  The company received $3,000 cash payment for the services provided on May 12.

     22  The company provided $2,800 of consulting services on credit.

     25  The company received $2,800 cash payment for the services provided on May 22.

     26  The company paid $1,680 cash for the office equipment purchased on May 3.

     27  The company purchased $60 of advertising in this month’s (May) local paper on credit; cash payment is due June 1.

     28  The company paid $850 cash for an assistant’s salary for the second half of this month.

     30  The company paid $200 cash for this month’s telephone bill.

     30  The company paid $480 cash for this month’s utilities.

     31  The company paid $1,200 cash for dividends.

 

Required

1. Arrange the following asset, liability, and equity titles in a table like Exhibit 1.9: Cash; Accounts Receivable; Office Equipment; Accounts Payable; Common Stock; Dividends; Revenues; and Expenses.

 

2. Show effects of the transactions on the accounts of the accounting equation by recording increase and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

 

3. Prepare an income statement for May, a statement of retained earnings for May, a May 31 balance sheet, and a statement of cash flows for May.

 

 

P2-3A

The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31

                                                    2010                       2011

Cash . . . . . . . . . . . . . . . . . . . . $ 52,500               $ 18,750

Accounts receivable . . . . . . . . 28,500                       22,350

Office supplies . . . . . . . . . . . . . 4,500                        3,300

Office equipment . . . . . . . . . . 138,000                     147,000

Trucks . . . . . . . . . . . . . . . . . . . 54,000                      54,000

Building . . . . . . . . . . . . . . . . . . 0                             180,000

Land . . . . . . . . . . . . . . . . . . . . . 0                             45,000

Accounts payable . . . . . . . . . . 7,500                         37,500

Note payable . . . . . . . . . . . . . . 0                             105,000

 

Late in December 2011, the business purchased a small office building and land for $225,000. It paid $120,000 cash toward the purchase and a $105,000 note payable was signed for the balance. Mr. Fabiano had to invest $35,000 cash in the business (in exchange for stock) to enable it to pay the $120,000 cash. The business also pays $3,000 cash per month for dividends.

 

Required:

1.  Prepare balance sheets for the business as of December 31, 2010 and 2011. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.)

 

2.  By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2011.

 

3.  Compute the 2011 year-end debt ratio for the business

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more