Accounting Homework

CASE #1:

On May 5, 2013, Gina Ennabeortiz started a carpet cleaning business called Ennabeortiz Family Carpet Cleaning. She completed the following transactions during the month:

a. Gina invested $16,500 cash and a small truck with a value of $8,000 to start her business.

b. Prepaid $3,500 cash for 12 months’ rent on a small office.

c. Purchased office supplies for cash, $575.

d. Purchased equipment on account, $4,000.

e. Received cash for services performed, $3,350.

f. Performed services on credit, $2,350.

g. Purchased truck supplies on account, $125.

h. Received $15,350 cash in advance of providing cleaning services to a customer.

i. Paid $2,500 cash for the premium on a 6-month insurance policy.

j. Paid salary of employee, $1,550.

k. Purchased $2,500 of additional equipment by paying $400 cash and signing a long-term note payable for $2,100.

l. Paid for repairs to truck, $225.

m. Received $1,350 for the services performed in transaction f.

n. Paid utilities, $315.

o. Completed cleaning services and immediately collected $10,500.

p. Paid creditor $675 on the purchase in transaction g.

q. Provided $2,000 of cleaning services from transaction h.

r. Gina withdrew cash for personal use, $2,775.

s. Paid $5,000 cash for advertisements on the local television station during May.

Required:

1. Prepare general journal entries to record these transactions (use the account titles listed in part 2).

2. Open a set of T accounts with the following titles: Cash (101), Accounts Receivable (106); Office Supplies (124); Truck Supplies(128); Equipment (131); Prepaid Rent (140); Prepaid Insurance (150); Truck (163); Accounts Payable (201); Notes Payable (202); Unearned Cleaning Revenue (203); Gina Ennabeortiz, Capital (301); Gina Ennabeortiz, Drawing (302); Cleaning Revenue (403); Salaries Expense (620); Truck Expense (630); Utilities Expense (640) and Advertising Expense (650). Post journal entries from Part 1 to the T accounts and calculate the account balance for each account.

3. Prepare a trial balance as of the end of this month’s operations.

4. Using the trial balance created above, prepare an income statement, statement of owner’s equity and a balance sheet for the month ended May 31st.

CASE #2:

Andrew Chalmers operates a roofing and siding company called Chalmers Roofing Services. On June 30, 2013, the company’s records show the following accounts which all have normal balances:

Account Name	Amount
Cash	5,500
Accounts Receivable	7,500
Office Supplies	550
Truck	8,000
Office Equipment	4,500
Repair Supplies	850
Accounts Payable	6,750
Notes Payable	3,800
A. Chalmers, Capital, June 1	4,690
A. Chalmers, Investment, June 10	2,500
A. Chalmers, Investment, June 20	3,000
A. Chalmers, Withdrawals	2,500
Roofing Revenue	4,250
Unearned Roofing Revenue	2,500
Siding Revenue	5,200
Unearned Siding Revenue	2,700
Miscellaneous Expense	1,490
Rent Expense	1,200
Salaries Expense	2,800
Utilities Expense	500

Required:

1. Prepare an income statement for the month ended June 30, 2013.

2. Prepare a statement of owner’s equity for the month ended June 30, 2013.

3. Prepare a balance sheet as of June 30, 2013.