Question: The following amounts summarize the financial position of Taylor Computing

The following amounts summarize the financial position of Taylor Computing, Inc., on October 31, 2014:

During November 2014, Taylor Computing completed these transactions:
a. The business received cash of $4,000 and issued common stock.
b. Performed services for a customer and received cash of $6,300.
c. Paid $4,100 on accounts payable.
d. Purchased supplies on account, $1,200.
e. Collected cash from a customer on account, $1,700.
f. Consulted on the design of a computer system and billed the customer for services rendered, $4,200.
g. Recorded the following business expenses for the month: (1) paid office rent—$1,600;
(2) paid advertising—$1,200.
h. Declared and paid a cash dividend of $2,700.

1. Analyze the effects of the preceding transactions on the accounting equation of Taylor Computing, Inc.
2. Prepare the income statement of Taylor Computing, Inc., for the month ended November 30, 2014. List expenses in decreasing order by amount.
3. Prepare the entity’s statement of retained earnings for the month ended November 30, 2014.
4. Prepare the balance sheet of Taylor Computing, Inc., at November 30,2014.
View Solution:

Sale on SolutionInn
  • CreatedJuly 25, 2014
  • Files Included
Post your question