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Ms. Diaz Answer Key

The document records 14 transactions involving cash, equipment, supplies, and service revenue for Ms. Diaz's business. It shows an initial investment of $200,000 cash. Various purchases and cash receipts are recorded. It concludes by presenting the statement of financial position showing total assets of $368,000 and equity of $218,000, and the statement of income and expenses showing net income of $38,000.

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109 views

Ms. Diaz Answer Key

The document records 14 transactions involving cash, equipment, supplies, and service revenue for Ms. Diaz's business. It shows an initial investment of $200,000 cash. Various purchases and cash receipts are recorded. It concludes by presenting the statement of financial position showing total assets of $368,000 and equity of $218,000, and the statement of income and expenses showing net income of $38,000.

Uploaded by

sheeshquiet
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Transaction No.

Accounts Debit Credit


1 Cash 200,000.00
Capital, Ms. Diaz 200,000.00
To record initial investment of Ms. Diaz

2 Equipment 100,000.00
Accounts Payable 100,000.00
To record purchase of equipment on account

3 Supplies 62,000.00
Cash 62,000.00
To record purchase supplies for cash

4 Accounts payable 60,000.00


Cash 60,000.00
To record partial payment for equipment purchased

5 Cash 100,000.00
Loans payable 100,000.00
To record receipt of bank loan from bank

6 Cash 25,000.00
Service revenue 25,000.00
To record cash receipt from services rendered

7 Acocunts receivable 50,000.00


Service revenue 50,000.00
To record services rendered on account

8 Rent expense 10,000.00


Cash 10,000.00
To record payment of monthly rent

9 Cash 30,000.00
Accounts receivable 30,000.00
To record receipt of cash from services rendered on account

10 Salaries expense 15,000.00


Cash 15,000.00
To record payment of salaries

11 Cash 2,000.00
Accounts receivable 4,000.00
Service revenue 6,000.00
To record receipt of cash from customer, balance on account

12 Supplies 15,000.00
Cash 5,000.00
Accounts payable 10,000.00
To record purchase of supplies for cash, balance on account

13 Supplies expense 18,000.00


Supplies 18,000.00
To record supplies used during the month

14 Withdrawal, Ms. Diaz 20,000.00


Cash 20,000.00
To record withdrawal of Ms. Diaz
Statement of Financial Position Statement of Income and Expenses
Assets Revenues
Cash 185,000.00 Service Revenue 81,000.00
Accounts receivable 24,000.00 Total revenues 81,000.00
Supplies 59,000.00
Equipment 100,000.00 Expenses
Total Assets 368,000.00 Supplies expense 18,000.00
Rent expense 10,000.00
Liabilities and Equity Salries expense 15,000.00
Liabilities Total expenses 43,000.00
Accounts payable 50,000.00
Loans payable 100,000.00 Net income 38,000.00
Total liabilities 150,000.00

Equity
Capital, Ms. Diaz 200,000.00
Withdrawal, Ms. Diaz - 20,000.00
Retained earnings/Net income 38,000.00
Total equity 218,000.00
Total liabilities and equity 368,000.00
Data
Accounts Sum of Debit Sum of Credit
Accounts Payable 60,000.00 110,000.00
Accounts receivable 4,000.00 30,000.00
Acocunts receivable 50,000.00
Capital, Ms. Diaz 200,000.00
Cash 357,000.00 172,000.00
Equipment 100,000.00
Loans payable 100,000.00
Rent expense 10,000.00
Salaries expense 15,000.00
Service revenue 81,000.00
Supplies 77,000.00
Supplies 18,000.00
Supplies expense 18,000.00
To record cash receipt from services rendered
To record initial investment of Ms. Diaz
To record partial payment for equipment purchased
To record payment of monthly rent
To record payment of salaries
To record purchase of equipment on account
To record purchase of supplies for cash, balance on account
To record purchase supplies for cash
To record receipt of bank loan from bank
To record receipt of cash from customer, balance on account
To record receipt of cash from services rendered on account
To record services rendered on account
To record supplies used during the month
To record withdrawal of Ms. Diaz
Withdrawal, Ms. Diaz 20,000.00
(empty)
Total Result 711,000.00 711,000.00
Account Title Sum of Debit Sum of Credit
Accounts Payable 60,000.00 110,000.00
Accounts receivable 4,000.00 30,000.00
Acocunts receivable 50,000.00
Capital, Ms. Diaz 200,000.00
Cash 357,000.00 172,000.00
Equipment 100,000.00
Loans payable 100,000.00
Rent expense 10,000.00
Salaries expense 15,000.00
Service revenue 81,000.00
Supplies 77,000.00
Supplies 18,000.00
Supplies expense 18,000.00
Withdrawal, Ms. Diaz 20,000.00
Grand Total 711,000.00 711,000.00

Accounts Payable 50,000.00


Accounts receivable 24,000.00
Capital, Ms. Diaz 200,000.00
Cash 185,000.00
Equipment 100,000.00
Loans payable 100,000.00
Rent expense 10,000.00
Salaries expense 15,000.00
Service revenue 81,000.00
Supplies 59,000.00
Supplies expense 18,000.00
Withdrawal, Ms. Diaz 20,000.00
Grand Total

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