FallSession - U1IP_PrinciplesOFAccounting

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Choose only 1 assignment. You will be graded for only 1 assignment.

Choice 1:

Mary Ann Powers decided to go into business as a sole proprietor and established MAP Computer Consulting Services on October 01, 2010. Listed below are the transactions that took place during the month of October.

Date	Transaction
10/01	Opened a business checking account (bank) with a deposit of $25,000 from her personal account
10/02	Purchased computer supplies for $1,500 paying for all of it by check from the business checking account
10/03	Provided services to ABC Inc. and received payment of $795 for services rendered
10/05	Paid rent for the company’s office space for the month ($900)
10/10	Paid office salaries ($2,100)
10/11	Billed customers for services provided on account ($17,000)
10/15	Purchased computer supplies for $3,000 paying $750 in cash and the rest on account
10/16	Paid automobile expenses of $250 and miscellaneous expenses of $100
10/20	Paid creditors on account ($500)
10/25	Received cash payment of $5,000 from customers previously billed (on account)
10/31	Determined the cost of supplies available on hand at the end of the month is $2,500; therefore, the cost of supplies used was $2,000
10/31	Mary Ann Powers withdrew cash for personal use, $1,000.

Instructions:

Indicate the effect of each transaction (plus or minus) under the appropriate tabular heading (use Choice 1 Excel Template provided). HINT: The first transaction was completed for you on the template provided.
Based on the transactions that you recorded and analyzed for MAP Computer Consulting Services, prepare the following statements (use excel template provided MJ-IP1A-2):
- Income statement
- Statement of owner’s equity
- Balance sheet

Please submit your assignment.

-OR-

Choice 2:

Mary Ann Powers decided to go into business as a sole proprietor and established MAP Computer Consulting Services on October 01, 2010. The effects of each transaction and the ending balances are recorded and summarized for you in the Choice 2-Exhibit.

Instructions:

Define the following statements ( not to exceed 150 words):
- Income statement
- Statement of owner’s equity
- Balance sheet
Using the information presented on Choice 2-Exhibit, prepare the following statements (use template provided on Choice 2-Templates tab in same excel file as the Exhibit):
- Income statement
- Statement of owner’s equity
- Balance sheet
Now, analyze the statements you presented above by answering the following questions (sample answer format: net income = $XX,XXX):
- What is the company’s net income (loss) as of October 31, 2010?
- What were the total revenues for the month of October?
- Enumerate the expenses and amounts that were incurred at the end of October 2010.
- Are there any liabilities as of October 31, 2010? If yes, how much?
- How much are the receivables due to MAP Consulting Services as of October 31, 2010?
- What is the owner's equity for MAP Consulting Services as of October 31, 2010?
- Does MAP still have any supplies on hand at the end of the month? If so, how much?