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Week 4 | Acc1002 | Warm Up Exercise

669 words - 3 pages

Week 4 | Warm Up Exercise | Tan Siow Ching (Alicia)
p. 78: QS2-6
Prepare journal entries for each of the following selected transactions
a. On January 15, Kolby Anderson received shares from setting up a remodelling company called Fancy Kitchens by investing $75,000 cash along with equipment having a $30,000 value.
b. On January 21, Fancy Kitchens purchases office supplies on credit for $650
c. On January 25, Fancy Kitchens receives $8,700 cash for performing remodelling services.
d. On January 30, Fancy Kitchens receives $4,000 cash in advance of providing remodelling services to a customer.
| $ | $ |
a | Cash ...view middle of the document...

Prepaid Insurance | SFP |

p. 81: E2-16
A company had the following assets and liabilities at the beginning and end of this year.
| Assets | Liabilties |
Beginning of the year | 70,000 | 30,000 |
End of the year | 115,000 | 46,000 |
Determine the net income earned or net loss incurred by the company during the year for each of the following separate cases:
a. No issuance of shares and no dividends.
Net income earned = 115000-70000-(46000 - 30000) = 29,000
b. No issuance of shares but paid dividend of $15,000.
Net income earned = 115,000 – 70,000 – (46,000 – 30,000) – 15,000 = 14,000
c. No dividend but issued shares for an additional $45,000 cash.
Net income earned = 115,000 – 70,000 – (46,000 – 30,000) + 45,000 = 74,000
d. Dividend of $15,000 and issuance of shares for an additional $25,000 cash.
Net income earned = 115,000 – 70,000 – (46,000 – 30,000) – 10,000 = 19,000

p. 89: P2-6B
Michael Gould started a Web consulting company called Gould Solutions. The company began operations and completed seven transactions in April that resulted in the following accounts, which all have normal balances.
Cash | 12,485 |
Office Supplies | 560 |
Prepaid Rent | 1,500 |
Office Equipment | 11,450 |
Accounts Payable | 11,450 |
Share Capital | 10,000 |
Dividends | 6,200 |
Consulting Fees Earned | 16,400 |
Operating Expenses | 5,655 |
Required
1. Prepare a trial balance for this business as at the end...

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