Hw22

E2-18A (book/static) The following selected events were experienced by either Knox Eldercare​ Services, Inc., a​ corporation, or Steve​ Knox, the major stockholder. a. Sold land and received cash of​ $69,000 (the land was carried on the​ company’s books at​ $69,000). b. Received​ $15,400 cash from customers on account. c. Made cash purchase of land for a building site for the​ business, $89,000. d. Borrowed​ $62,000 from the bank for use in the business. e. Knox used personal funds to purchase a​ flat-screen TV for his home. f. Purchased medical equipment and signed a​ $90,000 promissory note in payment. g. Purchased office supplies on account for​ $1,200. h. Received​ $12,000 cash and issued stock to a stockholder. i. Paid​ $400 cash on accounts payable. j. The business paid Knox a cash dividend of​ $4,000. Requirement 1. State whether each event​ (1) increased,​ (2) decreased, or​ (3) had no effect on the total assets of the business. Identify any specific asset affected. State whether each event​ (1) increased,​ (2) decreased, or​ (3) had no effect on the total assets of the business. Identify any specific asset affected. If no​ effect, indicate the reason. Account affected or why Trans. Asset effect assets are not affected a. E2-22A (book/static) The first seven transactions of Fournier​Advertising, Inc., have been posted to the​ company’s accounts: Cash Supplies Land Equipment (1) 8,900 (4) 12,000 (3) 1,000 (5) 75 (4) 36,000 (7) 3,700 (2) 10,000 (6) 300 (5) 75 (7) 3,700 Accounts Payable Note Payable Common Stock (6) 300 (3) 1,000 (2) 10,000 (1) 8,900 (4) 24,000 Requirement 1. Prepare the journal entries that served as the sources for the seven transactions. Include an explanation for each entry. As Fournier moves into the next​ period, how much cash does the business​ have? How much does Fournier owe in total​ liabilities? Begin by recording the journal​ entries; start with transaction​ (1). ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.) Journal Entry Accounts and Explanations Debit Credit 1. ————– ————– E2-23A (book/static) The accounts of Custom Patio​Service, Inc., follow with their normal balances at April​ 30, 2016. The accounts are listed in no particular order. Account Balance Account Balance Dividends . . . . . . . . . . . . . . . . . . . $3,400 Common stock . . . . . . . . . . $16,800 Utilities expense . . . . . . . . . . . . . 2,200 Accounts payable . . . . . . . 4,900 Accounts receivable . . . . . . . . . . 5,100 Service revenue . . . . . . . . . 21,100 Delivery expense . . . . . . . . . . . . 600 Equipment . . . . . . . . . . . . . 30,400 Retained earnings . . . . . . . . . . . . 2,400 Note payable . . . . . . . . . . . 24,000 Salary expense . . . . . . . . . . . . . . 8,800 Cash . . . . . . . . . . . . . . . . . . 18,700 Read the requirements 1) Prepare the​ company’s trial balance at April​ 30, 2016, listing accounts in proper sequence. For​ example, Accounts Receivable comes before Equipment. List the expense with the largest balance​ first, the expense with the next largest balance​ second, and so on.2) Prepare the financial statement for the month ended April​ 30, 2016, that will tell the company the results of operations for the month.Requirement 1. Prepare the​ company’s trial balance at April​ 30, 2016, listing accounts in proper sequence. For​ example, Accounts Receivable comes before Equipment. List the expense with the largest balance​ first, the expense with the next largest balance​ second, and so on.Select the accounts that will be listed on the trial​ balance; enter the account balances and finally total the debits and ​credits.Remember to list the accounts in the proper sequence​;​assetsfirst, then liabilitiesfollowed by​stockholders’ equity​ (including revenue and expense​ accounts). List the expenses last with the​ largestbalance first, the expense with the next largest balance​ second, and so on. Custom Patio Service, Inc. Trial Balance April 30, 2016 Account Debit Credit Total ————— E2-24A (book/static) The trial balance of Harper, ​Inc., at September​ 30, 2016 does not​ balance: Cash . . . . . . . . . . . . . . . . . . . . . . . . $14,500 Accounts receivable . . . . . . . . . . . . 12,600 Inventory . . . . . . . . . . . . . . . . . . . . 16,800 Supplies . . . . . . . . . . . . . . . . . . . . . 200 Land . . . . . . . . . . . . . . . . . . . . . . . . 50,000 Accounts payable . . . . . . . .  
$12,000 Common stock . . . . . . . . . . . . . . . . 47,100 Sales revenue . . . . . . . . . . . . . . . . 40,000 Salary expense . . . . . . . . . . . . . . . 2,400 Rent expense . . . . . . . . . . . . . . . . . 900 Utilities expense . . . . . . . . . . . . . . . 800 Total . . . . . . . . . . . . . . . . . . . . . . . . $98,200 $99,100 The accounting records hold the following​ errors:A. Recorded a $ 500 cash revenue transaction by debiting Accounts Receivable. The credit entry            was correct.B. Posted a $ 3,000 credit to Accounts Payable as $ 300C. Did not record utilities expense or the related account payable in the amount of $ 240.D. Understated Common Stock by $100.E. Omitted Insurance Expense of $ 3,700 from the trial balance.Requirement1. Prepare the correct trial balance at September​ 30, 2016, complete with a heading. Journal entries are not required.A correct trial balance will start with the appropriate header. Then enter the correct account balances after you adjust for the errors found in the investigation. Total the debits and credits. Harper, Inc. Trial Balance September 30, 2016 Account Debit Credit Cash Accounts receivable Inventory Supplies Land Accounts payable Common stock Sales revenue Insurance expense Salary expense Utilities expense Rent expense Total E2-25A (book/static) Review the following transactions. A. Leigh Hampton opened a law firm by investing $ 22,500 cash and office furniture wiith a fair value of $ 9,000. Organized as a professional​ corporation, the business issued common stock to Hampton.B. Paid monthly rent of $ 1,600.C. Purchased office supplies on​ account, $ 1,400.D. Paid​ employees’ salaries of $ 3,300.E. Paid $ 850 of the accounts payable created in transaction c.F. Performed legal service on​ account, $ 10,100.G. Declared and paid dividends of $ 2,300.Requirement1. Record the transactions directly in the​ T-accounts without using a journal. Use the letters to identify the transactions. (Select the​ “Bal” label on the normal balance side of the account and enter the ending​ balances.) Cash Common Stock Accounts Receivable Dividends Office Supplies Service Revenue Office Furniture Salary Expense Accounts Payable Rent Expense