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Fin. Acc. Chapter-2 Tabular Analysis

Nancy Barone started a repair shop in May. Transactions included investing $10,000 cash, purchasing $5,000 of equipment, and paying $400 rent and $500 for supplies. The shop billed $750 for services, received $5,100 cash from customers, and paid $2,000 in salaries and $140 in utilities. The owner withdrew $1,000 and the shop incurred $250 in advertising costs. Net income for May was $500.

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Fayez Aman
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146 views

Fin. Acc. Chapter-2 Tabular Analysis

Nancy Barone started a repair shop in May. Transactions included investing $10,000 cash, purchasing $5,000 of equipment, and paying $400 rent and $500 for supplies. The shop billed $750 for services, received $5,100 cash from customers, and paid $2,000 in salaries and $140 in utilities. The owner withdrew $1,000 and the shop incurred $250 in advertising costs. Net income for May was $500.

Uploaded by

Fayez Aman
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Financial accounting

Chapter-2: Exercise (Tabular Analysis)


P1-1A
Barone’s Repair Shop was started on May 1 by Nancy Barone. 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 $5,100 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 $140.
10. Provided repair service on account to customers $750.
11. Collected cash of $120 for services billed in transaction (10).
Instructions
(a) Prepare a tabular analysis of the transactions, using the following column headings: Cash, Accounts Receivable,
Supplies, Equipment,Accounts Payable,N. Barone, Capital;N. Barone, Drawings; Revenues, and Expenses.
(b) From an analysis of the owner’s equity columns, compute the net income or net loss for May.

P1-2A
Maria Gonzalez opened a veterinary business in Nashville,Tennessee, on August 1. On August 31, the balance sheet showed
Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600, and M.
Gonzalez, Capital $13,700.
During September the following transactions occurred.
1. Paid $2,900 cash on accounts payable.
2. Collected $1,300 of accounts receivable.
3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account.
4. Earned revenue of $8,000, of which $2,500 is paid in cash and the balance is due in October.
5. Withdrew $1,000 cash for personal use.
6. Paid salaries $1,700, rent for September $900, and advertising expense $300.
7. Incurred utilities expense for month on account $170.
8. Received $10,000 from Capital Bank–money borrowed on a note payable.
Instructions
(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances.
(b) Prepare an income statement for September, an owner’s equity statement for September, and a balance sheet
at September 30.

P1-3A On May 1, Jeff Wilkins started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash
in the business. Following are the assets and liabilities of the company on May 31, 2010, and the revenues and expenses for the
month of May.

Jeff Wilkins made no additional investment in May, but he withdrew $1,500 in cash for personal use.

Instructions
(a) Prepare an income statement and owner’s equity statement for the month of May and a balance sheet at May 31.
(b) Prepare an income statement and owner’s equity statement for May assuming the following data are not included above:
(1) $900 of revenue was earned and billed but not collected at May 31, and
(2) $1,500 of fuel expense was incurred but not paid.
P1-4A Mark Miller started his own delivery service, Miller Deliveries, on June 1, 2010.The following transactions
occurred during the month of June.
June 1 Mark invested $10,000 cash in the business.
2 Purchased a used van for deliveries for $12,000. Mark paid $2,000 cash and signed a note payable for
the remaining balance.
3 Paid $500 for office rent for the month.
5 Performed $4,400 of services on account.
9 Withdrew $200 cash for personal use.
12 Purchased supplies for $150 on account.
15 Received a cash payment of $1,250 for services provided on June 5.
17 Purchased gasoline for $100 on account.
20 Received a cash payment of $1,500 for services provided.
23 Made a cash payment of $500 on the note payable.
26 Paid $250 for utilities.
29 Paid for the gasoline purchased on account on June 17.
30 Paid $1,000 for employee salaries.
Instructions
(a) Show the effects of the previous transactions on the accounting equation .
(b) Prepare an income statement for the month of June.
(c) Prepare a balance sheet at June 30, 2010.

P1-5A Financial statement information about four different companies is as follows.

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