Accounting Texts and Casts Problems 1-4, 1-5 Dissertation

Problem 1-4

The explanation of those 11 ventures is:

1 . Owners invest $20, 1000 of value capital in Acme Asking. 2 . Equipment costing $7, 000 is usually purchased intended for $5, 500 cash and an account payable of $2, 000. several. Supplies inventory costing $1, 000 can be bought to get cash.

5. Salaries of $4, 500 are paid out in funds.

5. Earnings of $10, 000 are earned, that $5, 1000 has been reclaimed in funds. The remaining $5, 000 can be owed for the company simply by its consumers. 6. Accounts payable of $1, five-hundred are paid out in funds.

7. Customers pay $1, 000 from the $5, 1000 they must pay back the company.

eight. Rent Charge of $750 is paid in funds.

9. Utilities of $500 are paid out in funds.

10. A $200 travel around expense have been incurred although not yet paid out. 11. Items inventory priced at $200 will be consumed.

EXTREME CONSULTING

BALANCE SHEET BY JULY 23, ----.

AssetsLiabilities and Owners' Equity

Cash$12, 750Accounts payable$ 700

Accounts receivable4, 000

Supplies products on hand 800______

Current assets17, 550Current liabilities700

Products 7, 000Owners' equity twenty three, 850

Total assets

$24, 550Total financial obligations

and owners' equity

$24, 550

END CONSULTING

INCOME STATEMENT JULY one particular - 23, ----.

Revenues$10, 000

Expenses

Salaries4, five-hundred

Rent750

Utilities500

Travel200

Materials 2006, a hundred and fifty

Net income$ 3, 850

ACME ASKING

MONEY RECEIPTS AND DISBURSEMENTS, SEPTEMBER 1 - 31, ----.

Receipts

Owners' investment$20, 500

Cash sales5, 000

Number of accounts receivable 1, 500

Total receipts$26, 000

Payments

Equipment purchase$5, 000

Supplies purchase you, 000

Wages paid4, five-hundred

Payments to vendors1, 500

Rent paid750

Utilities paid out 500

Total disbursements$13, two hundred fifity

Increase in cash$12, 750

The change in this cash consideration includes the owners' investment, which is not positive cash-flow statement item. The income statement comes with revenues and expenses that have not yet been received in funds or paid out in...



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