James Tanson, a retired army officer, opened Tanson's Catering Service. As his accountant, analyze the transactions listed
Question:
a. The analysis of the transactions by using the expanded accounting equation.
b. A balance sheet showing the position of the firm before opening for business on October 31, 201X.
c. An income statement for the month of November.
d. A statement of owner's equity for November.
e. A balance sheet as of November 30, 201X.
201X
Oct. 25 James Tanson invested $20,000 in the catering business from his personal savings account.
27 Bought equipment for cash from Munroe Co., $2,300.
28 Bought additional equipment on account from Ryan Co., $2,000.
29 Paid $900 to Ryan Co. as partial payment of the October 28 transaction.
(You should now prepare your balance sheet as of October 31, 201X.)
Nov. 1 Catered a graduation and immediately collected cash, $1,300.
5 Paid salaries of employees, $800.
8 Prepared desserts for customers on account, $500.
10 Received $250 cash as partial payment of November 8 transaction.
15 Paid telephone bill, $400.
17 Paid his home electric bill from the company's checkbook, $160.
20 Catered a wedding and received cash, $1,800.
25 Bought additional equipment on account, $1,200.
28 Rent expense due but unpaid, $650.
30 Paid supplies expense, $300.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater
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