Nama : Nuzquri Adhelia Safitri
NIM : 20/458451/23041
Case 1
Rita’s Payroll Services Company entered into the following transactions during May 2020.
1. Purchased computer terminals for $15,000 from Comp-time on account.
(c) an increase in assets and an increase in liabilities
2. Paid $3,000 cash for May rent on storage space.
(d) a decrease in assets and a decrease in owner’s equity
3. Received $12,000 cash from customers for contracts billed in April.
(b) an increase in assets and an increase in owner’s equity
4. Provided computer services to Magic Construction Company for $2,500 cash.
(b) an increase in assets and an increase in owner’s equity
5. Paid Northern Ohio Power Co. $7,000 cash for energy usage in May.
(d) a decrease in assets and a decrease in owner’s equity
6. Rita invested an additional $25,000 in the business.
(b) an increase in assets and an increase in owner’s equity
7. Paid Comp-time for the terminals purchased in (1) above.
(e) a decrease in assets and a decrease in liabilities
8. Incurred advertising expense for May of $900 on account.
(f) an increase in liabilities and a decrease in owner’s equity
Case 2
Solki’s Repair Shop was started on May 1 by Solki Lee. A summary of May transactions is
presented below.
1. Invested $10,000 cash to start the repair shop.
2. Purchased equipment for $5,000 cash.
3. Paid $400 cash for May office rent.
4. Paid $500 cash for supplies.
5. Incurred $250 of advertising costs in the Beacon News on account.
6. Received $6,100 in cash from customers for repair service.
7. Withdrew $1,000 cash for personal use.
8. Paid part-time employee salaries $2,000.
9. Paid utility bills $170.
10. Performed repair services worth $750 on account.
11. Collected cash of $120 for services billed in transaction (10).
A. Tabular Analysis
B. The owner’s equity columns
SOLKI’S REPAIR SHOP
Income statements
For the Month ended of May 31
Revenues
Repair service
$6.100
Expenses
Rent expense
$400
Adversting
$250
Part-time
salaries
$2.000
Paid utility
$170
Total
expense
$2.820
Net Income
$4.030
Liabilities
1 (+)$10,000 (+)$10,000
2 (-)$5,000 (+)$5,000
3 (-)$400 (-)$400
4 (-)$500 (+)$500
5 (+)$250 (+)$250
6 (+)$6,100 (+)$6,100
7 (-)$1,000 (-)1,000
8 (-)$2,000 (-)$2,000
9 (-)$170 (-)$170
10 (+)$750 (+)$750
11 (+)$120 (-)$120
13.280
13.280
Accounts
Payable
Owner’s
Capital
Owner’s
Drawings
Revenues
Expenses
Owner’s Equity
Assets
Transac-
tion
Cash
Accounts
Receivable
Supplies
Equipm–
ent
SOLKI’S REPAIR SHOP
Owner‘s equity coloumns
For the Month ended of May 31
Owner‘s capital, May 1
$ –0–
Add: Investments
$10.000
Net
Income
$4.030
$14.030
$14.030
Less: Drawings
$1.000
Owner‘s capital, May 30
$13.030
So, we can conclude from the analysis Solki’s Repair Shop have the net income $4.030 for
May.
Case 3
The following information relates to Eusey Co. for the year 2020.
Owner’s capital, January 1, 2017 $ 48,000
Advertising expense $ 1,800
Owner’s drawings during 2017 7,000
Rent expense 12,000 Service revenue 65,000
Utilities expense 3,100 Salaries and wages expense 30,000
1. Income Statements
Eusey Co.
Income statements
For the Year Ending December 31, 2020
