Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
PROBLEM 1A-4
(a)
WILLIAMS HOME DECORATING SERVICE
INCOME STATEMENT
MONTH ENDED SEPTEMBER 30, 201X
Revenue:
Home Decorating Fees
$2
7
0
0
Operating Expenses:
Advertising Expense
$
2
5
5
Repair Expense
4
5
Travel Expense
6
5
0
Supplies Expense
1
1
5
Rent Expense
1
5
0
Total Operating Expenses
1
2
1
5
Net Income
$1
4
8
5
STATEMENT OF OWNER'S EQUITY
MONTH ENDED SEPTEMBER 30, 201X
J. Williams, Capital, September 1, 201X
$2
5
0
0
Net Income for September
$1
4
8
5
Less: Withdrawals for September
(3
0
0)
Increase in Capital
1
1
8
5
J. Williams, Capital, September 30, 201X
$3
6
8
5
(c)
WILLIAMS HOME DECORATING SERVICE
BALANCE SHEET
SEPTEMBER 30, 201X
ASSETS
LIABILITIES AND OWNER'S EQUITY
Cash
$2
1
0
0
Liabilities
Accounts Receivable
1
0
5
0
Accounts Payable
$
4
5
0
Decorating Equipment
9
8
5
Owner's Equity
J. Williams, Capital
3
6
8
5
Total Liabilities and
Total Assets
$4
1
3
5
Owner's Equity
$4
1
3
5
PROBLEM 1A-5
OWNER’S EQIUTY
Expenses
0
0
0
0
0
+800
800
800
800
+400
1,200
1,200
1,200
1,200
+650
1,850
+300
2,150
–
-
-
-
-
-
-
-
-
-
-
-
–
-
–
-
–
-
–
-
–
-
–
-
–
-
–
-
–
Catering
Revenue
0
0
0
0
+1,300
1,300
1,300
+500
1,800
1,800
1,800
1,800
+1,800
3,600
3,600
3,600
3,600
TANSON’S CATERING SERVICE
J.
Tanson,
Withd
0
0
0
0
0
0
0
0
0
+160
160
160
160
160
160
–
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
–
-
-
-
–
-
–
-
–
J.
Tanson,
Capital
+20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
LIABILITIES
Accounts
Payable
0
0
+2,000
2,000
(900)
1100
1,100
1,100
1100
1,100
1,100
1,100
1,100
+1,200
2,300
+650
2,950
2,950
$24,240
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
Equipment
+2,300
2,300
+2,000
4,300
4,300
4,300
4,300
4,300
4,300
4,300
4,300
4,300
+1,200
5,500
5,500
5,500
$24,240
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
ASSETS
Accounts
Receivable
0
0
0
0
0
0
+500
500
(250)
250
250
250
250
250
250
250
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Cash
+20,000
20,000
(2,300)
17,700
17,700
(900)
16,800
+1,300
18,100
(800)
17,300
17,300
+250
17,550
(400)
17,150
(160)
16,990
+1,800
18,790
18,790
18,790
(300)
18,490
10/25
BALANCE
10/27
BALANCE
10/28
BALANCE
10/29
BALANCE
11/1
BALANCE
11/5
BALANCE
11/8
BALANCE
11/10
BALANCE
11/15
BALANCE
11/17
BALANCE
11/20
BALANCE
11/25
BALANCE
11/28
BALANCE
11/30
END BAL.
PROBLEM 1A-5 (CONTINUED)
(b)
TANSON'S CATERING SERVICE
BALANCE SHEET
OCTOBER 31, 201X
ASSETS
LIABILITIES AND OWNER'S EQUITY
Cash
$16
8
0
0
Liabilities
Equipment
4
3
0
0
Accounts Payable
$1
1
0
0
Owner's Equity
J. Tanson, Capital
20
0
0
0
Total Liabilities and
Total Assets
$21
1
0
0
Owner's Equity
$21
1
0
0
(c)
TANSON'S CATERING SERVICE
INCOME STATEMENT
MONTH ENDED NOVEMBER 30, 201X
Revenue:
Catering Revenue
$3
6
0
0
Operating Expenses:
Salaries Expense
$
8
0
0
Telephone Expense
4
0
0
Rent Expense
6
5
0
Supplies Expense
3
0
0
Total Operating Expenses
2
1
5
0
Net Income
$1
4
5
0
PROBLEM 1-5A(CONCLUDED)
(d)
TANSON'S CATERING SERVICE
STATEMENT OF OWNER'S EQUITY
MONTH ENDED NOVEMBER 30, 201X
J. Tanson, Capital November 1, 201X
$20
0
0
0
Net Income for November
$1
4
5
0
Less: Withdrawals for November
(1
6
0)
Increase in Capital
1
2
9
0
J. Tanson, Capital, November 30, 201X
$21
2
9
0
(e)
TANSON'S CATERING SERVICE
BALANCE SHEET
November 30, 201X
ASSETS
LIABILITIES AND OWNER'S EQUITY
Cash
$18
4
9
0
Liabilities
Accounts Receivable
2
5
0
Accounts Payable
$2
9
5
0
Equipment
5
5
0
0
Owner's Equity
J. Tanson, Capital
21
2
9
0
Total Liabilities and
Total Assets
$24
2
4
0
Owner's Equity
$24
2
4
0
SOLUTIONS TO SET B PROBLEMS
PROBLEM 1B-1
MANDY’S NAIL SPA
Transaction
Assets =
Liabilities + Owner’s Equity
Cash
Store Equipment
Accounts
Payable
M. Anabelle,
Capital
a.
+21,000
+21,000
b.
(3,500)
+3,500
c.
+5,750
+5,750
d.
(1,000)
(1,000)
Total
16,500
9,250
4,750
21,000
PROBLEM 1B-2
SEALY'S INTERNET SERVICE
BALANCE SHEET
NOVEMBER 30, 201X
ASSETS
LIABILITIES AND OWNER'S EQUITY
Cash
$55
0
0
0
Liabilities
Equipment
14
0
0
0
Accounts Payable
$15
5
0
0
Building
50
0
0
0
Owner's Equity
Sealy, Capital
103
5
0
0
Total Liabilities and
Total Assets
$119
0
0
0
Owner's Equity
$119
0
0
0
Copyright © 2016 Pearson Education, Inc. 1-16
PROBLEM 1B-3
RED FUMAN COMPUTER SERVICE
Expenses
0
0
0
0
+500
500
+120
620
+600
1,220
1,220
–
-
-
-
-
-
-
-
–
-
–
-
–
-
–
-
–
OWNER'S
EQUITY
Computer
Service
Revenue
0
0
+200
200
+2,200
2,400
2,400
2,400
2,400
2,400
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
R.
Fuman
Withd.
0
0
0
0
0
0
0
+900
900
–
-
-
-
-
-
-
-
-
-
-
-
-
-
–
-
–
R.
Fuman,
Capital
+10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
LIABILITIES
Accounts
Payable
0
+2,000
2,000
2,000
2,000
2,000
2,000
+600
2,600
2,600
$12,880
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
Office
Equipment
0
+2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
$12,880
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
ASSETS
Accounts
Receivable
0
0
0
+2,200
2,200
2,200
2,200
2,200
2,200
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Cash
+10,000
10,000
10,000
+200
10,200
10,200
(500)
9,700
(120)
9,580
9,580
(900)
8,680
a.
BALANCE
b.
BALANCE
c.
BALANCE
d.
BALANCE
e.
BALANCE
f.
BALANCE
g.
BALANCE
h.
ENDING
BALANCE
PROBLEM 1B-4
(a)
WU HOME DECORATING SERVICE
INCOME STATEMENT
MONTH ENDED JUNE 30, 201X
Revenue:
Home Decorating Fees
$2
4
0
0
Operating Expenses:
Advertising Expense
$
1
8
5
Repair Expense
4
0
Travel Expense
1
1
0
Supplies Expense
1
3
5
Rent Expense
3
0
0
Total Operating Expenses
7
7
0
Net Income
$1
6
3
0
(b)
WU HOME DECORATING SERVICE
STATEMENT OF OWNER'S EQUITY
MONTH ENDED JUNE 30, 201X
J. Wu, Capital, June 1, 201X
$1
2
1
5
Net income for June
$1
6
3
0
Less: Withdrawals for June
(4
0
0)
Increase in Capital
1
2
3
0
J. Wu, Capital, June 30, 201X
$2
4
4
5
(c)
WU HOME DECORATING SERVICE
BALANCE SHEET
JUNE 30, 201X
ASSETS
LIABILITIES AND OWNER'S EQUITY
Cash
$1
7
0
0
Liabilities
Accounts Receivable
6
0
0
Accounts Payable
$1
1
4
0
Decorating Equipment
1
2
8
5
Owner's Equity
J. Wu, Capital
2
4
4
5
Total Liabilities and
Total Assets
$3
5
8
5
Owner's Equity
$3
5
8
5
