Accounting Homework

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Ex 1-27

Financial Accounting
E1-27 Preparing financial statements and evaluating business performance
LO 9, 10 [10-20 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
The account balances of Wilson Towing Service, at June 30, 2019, follow:
	Equipment	$ 13,600	Service revenue	$ 11,200
	Supplies	900	Accounts receivable	6,200
	Note payable	6,900	Accounts payable	3,000
	Rent expense	550	Wilson, capital, June 1, 2019	4,950
	Cash	2,900	Salary expense	1,900
	Wilson, drawing	0
Requirements
1.	Prepare the balance sheet of the business at June 30, 2019.
2.	What does the balance sheet report - financial position or operating results?
3.	Which financial statement reports the other accounts listed for the business?
Test Your Knowledge
E1-27
	Req. 1
	Wilson Towing Service, Inc.
	Balance Sheet
	June 30, 2019
	ASSETS		LIABILITIES
	Type account here		Type account here
	Type account here		Type account here
	Type account here		Total liabilities
	Type account here		OWNER'S EQUITY
			Type account here
	Total assets		Total liabilities and owner's equity
				Jennie: Hint: Total assets should equal Total liabilities and owner's equity.	Req. 2
	Enter information here
	Req. 3
	Enter information here

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Ex 1-28

Financial Accounting
E1-28 Preparing financial statements and evaluating business performance
LO 9, 10 [10-15 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
	The assets, liabilities, stockholders’ equity, revenues, and expenses of Davis Design Studio have the following balances at December 31, 2019, the end of its first year of operation. During the year, the business issued common stock for $15,000.
	Note payable	$ 42,000	Office furniture	$ 49,000
	Rent expense	23,000	Utilities expense	6,900
	Cash	3,600	Accounts payable	3,200
	Office supplies	4,500	Davis, capital	33,300
	Salary expense	65,000	Service revenue	158,300
	Salary payable	2,200	Accounts receivable	8,600
	Property tax expense	1,500	Supplies expense	4,200
Requirements
1.	Prepare the income statement of Davis Design Studio for the year ended December 31, 2019.
	What is the result of operatioons for 2019?
2.	What was the amount of the owner's withdrawal during the year?
Test Your Knowledge
E1-28
	Req. 1
	Davis Design Studio
	Income Statement
	Year Ended December 31, 2019
	Revenue:
	Service revenue
	Expenses:
	Salary expense
	Rent expense
	Utilities expense
	Supplies expense
	Property tax expense
	Net income			$ - 0
	Req. 2

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P1-35A

Financial Accounting
P1-35A Preparing financial statements and evaluating business performance
LO 9, 10 [20-30 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
	Presented here are the accounts of Gate City Answering Service for the
	year ended December 31, 2019.
	Land	$ 8,000	Owner investment, 2019	$ 28,000
	Note payable	32,000	Accounts payable	11,000
	Property tax expense	2,600	Accounts receivable	1,000
	Wayne, drawing	30,000	Advertising expense	15,000
	Rent expense	13,000	Building	145,200
	Salary expense	65,000	Cash	3,000
	Salary payable	1,300	Equipment	16,000
	Service revenue	192,000	Insurance expense	2,500
	Supplies	10,000	Interest expense	7,000
	Waynce, capital, 31/12/2018	54,000
Requirements
1.	Prepare Gate City Answering Service income statement.
2.	Prepare the statement of owner's equity
3.	Prepare the balance sheet.
4.	Answer these questions about the company:
	a. Was the result of operations for the year a profit or a loss? How much?
	b. How much in total economic resources does the company have as it moves
	into the new year?
	c. How much does the company owe to creditors?
	d. What is the dollar amount of the owner’s equity in the business at the
	end of the year?
Test Your Knowledge
P1-35A
	Req. 1
	Gate City Answering Service
	Income Statement
	Year Ended December 31, 2019
	Revenue:
	Service revenue
	Expenses:
	Insurance expense
	Total expenses			- 0
	Net income			$ - 0
	Req. 2
	Gate City Answering Service
	Statement of Owner's Equity
	Year Ended December 31, 2019
	Waynce, capital, 31/12/2018
	Net income
				- 0
	Drawings
	Wayne, capital, December 31, 2019			$ - 0
	Gate City Answering Service
	Balance Sheet
	December 31, 2019
	ASSETS		LIABILITIES
			Total liabilities	$ - 0
			OWNER'S EQUITY
			Wayne, capital	- 0
	Total assets	$ - 0	Total liabilities and stockholders' equity	$ - 0
	Req. 4
a
b
c
d

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P1-36A

Financial Accounting
P1-36A Preparing financial statements and evaluating business performance
LO 9 [20-30 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
	Studio Photography, works weddings and prom-type parties. The balance of
	Ansel, capital was $16,000 at December 31, 2018. At December 31, 2019, the
	business’s accounting records show these balances:
	Insurance expense	$ 8,000	Accounts receivable	$ 8,000
	Cash	37,000	Note payable	12,000
	Accounts payable	7,000	Ansel, capital, Dec. 31, 2019	?
	Advertising expense	3,000	Salary expense	25,000
	Service revenue	80,000	Equipment	50,000
	Ansel, drawing	13,000	Owner investment, 2019	29,000
Requirements
1.	Prepare the following financial statements for Studio Photography for the
	year ended December 31, 2019:
	a. Income statement
	b. Statement of owner's equity
	c. Balance sheet
Test Your Knowledge
P1-36A
	Req. 1
	Studio Photography
	Income Statement
	Year Ended December 31, 2019
	Revenue:
	Service revenue
	Expenses:
	Total expenses			- 0
	Net income			$ - 0
	Req. 2
	Studio Photography
	Statement of Owner's Equity
	Year Ended December 31, 2019
				- 0
	Ansel, capital, December 31, 2019			$ - 0
	Studio Photography
	Balance Sheet
	December 31, 2019
	ASSETS		LIABILITIES
			Total liabilities	$ - 0
			OWNER'S EQUITY
			Ansel, capital	- 0
	Total assets	$ - 0	Total liabilities and owner's equity	$ - 0

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E1-27 Preparing financial statements and evaluating business performance

LO 9, 10 [10-20 minutes]

Financial Accounting