In February and March, W.T. began to take one new types of jobs. However, these new...
Fantastic news! We've Found the answer you've been seeking!
Transcribed Image Text:
In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance In February and March, W.T. began to take one new types of jobs. However, these new types of jobs also require that he purchase and use a small amount of supplies to complete them. This means that some items may be paid for in cash before they're used to produce revenue. In Order to report net income that accurately matches revenues and the expenses that helped to generate them, w.T. needs to be careful about how he accounts for these items. Because W.T.'s aunt hasn't fully been repaid, she's asked that she be provided with financial statements for the current quarter (January - March) of operations. Below are summaries of transactions completed during February and March. 1. Paid the social media manager the amount owed from January. 2. Collected $495 of accounts receivable from January. 3. Purchased supplies of $40. 4. Received $2.625 in exchange for completing 175 jobs, less a $131 fee due to PayPal. 5. In Februery and March, completed 66 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $500 of accounts receivable for jobs completed in February. 7. Purchased and used gas of $575 in order to complete jobs. 8. Paid the newspaper $240 for advertising for February and March. 9. Paid the soclal media manager $250. This amount represented her monthly fee and fee for 150 of the jobs scheduled during the February arnd March. 10. Paid friends $600 to complete 50 jobs during February and March. 11. Paid a salary of $800 to W.T. 12. Repaid W.T.'s aunt $200 of the total amount owed to her. 13. As of March 31, determined that the soclal media manager is owed her scheduling fee for 25 jobs scheduled and completed over the last few days of the month. 14. Determined that there are $15 of supplies on hand at March 31. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for My Assistant, Inc. for the three months ending March 31. 3. Determine the total amaount of cash flow related to operating, investing, and financing activities for the three months ending March 31. Reconcile those amounts to the net change in cash. My Assistant Accounting Equation for February - March Stockholders' Equity Retained Earnings Assets Liabilities Account titles for RE Fees Notes Common Item Cash Accts Rec Supplies Payable Payoble Stock $100 Bal. Feb. 1 $739 $495 $0 $16 $400 $718 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bal. Mar. 31 My Assistant, Inc. Income Statement For the Three Months Ended March 31 Income Statement Work Paper: January February - March Total Service revenue $1,695 Operating expenses: Collection fee $60 Gas expense 280 Advertising expense 120 Scheduling expense 180 Delivery expense 240 Salaries expense 400 Supplies expense Total operating expenses My Assistant, Inc. Statement of Changes in Stockholders' Equity For the Three Months Ended March 31 Total Stockholders Equity Common Stock Retained Earnings Beginning Balance Plus: Plus: Less: Ending Balance My Assistant, Inc. Balance Sheet As of March 31 ASSETS: LIABILITIES: Total Liabilities STOCKHOLDERS EQUITY: Total Stockholders' Equity Total Liabilities & Total Assets Stockholders' Equity Cash Flows Work Paper: No Cash Effect Item Operating Investing Financing Totals from January $ (64) $ (100) 1. Paid SMM 2. Collected accounts receivable 3. Purchase supplies 4. Complete jobs 5. Complete jobs and bill clients 8. Collect accounts receivable 7. Purchase gas 8. Paid newspaper 9. Pay SMM 10. Pay contract labor 11. Pay W.T. salary 12. Partial loan repayment 13. Accrue amount due to SMM 14. Count supplies Totals Reconciliation: Net cash flow from operating activities Net cach flow from investing activities Net cash flow from financing activities Net change in cash Beginning cash balance $ 903 Ending cash balance
Expert Answer:
Answer rating: 100% (QA)
My Assistant Accounting Equation for February March Assets Liabilities Stockholders Equity Account titles for RE Item Cash Accts Rec Supplies Fees Pay... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these marketing questions
-
In February 2018, Culverson Company began developing a new software to be sold to customers. The software allows people to enter health information and track daily eating and exercise habits to track...
-
On 28th of March 2020 he purchased a new truck with an estimated useful life of 8 years for a total price of 165,000 and a residual value of 5,000. On 25 of September James decides to purchase a...
-
In early February 20I4, Huey Corp. began construction of an addition to its head office building that is expected to take 18 months to complete. The following 20I4 expenditures relate to the...
-
Consider three (ideally other) countries for which evidence features here. What are the key influences on cross-national comparative variation in the place and role of the HRM function?
-
Industrial Solvents Limited mixes together three chemicals - A, B and C - in the ratio 3:2:1 to produce Allklean, a specialized anti-static fluid. The chemicals cost 8, 6 and 3.90 per litre...
-
Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.80 direct labor-hours. The direct labor rate is $18.00 per direct labor-hour. The...
-
So-called Franklin tests were performed to determine the insulation properties of grain-oriented silicon steel specimens that were annealed in five different atmospheres with the following results:...
-
The Runge Controls Corporation manufactures and markets electrical control systems: temperature controls, machine controls, burglar alarms, and the like. The company acquires electrical and...
-
Write a C program that uses the random number generator rand( ) to create an array with 20 numbers in the range from 1 to 50 and disply them in a row. The program sorts the array elements and...
-
Segment the wind-generated power industry in a way that shows where Windspire Energy, the subject of the You Be the VC 1.1 feature, is located in the industry. How does Windspires awareness of the...
-
Sarasota Inc., a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows and follows the...
-
Philipich Company purchases \(80 \%\) of Hirst Company's common stock for \(\$ 300,000\) cash when Hirst Company has \(\$ 150,000\) of common stock and \(\$ 225,000\) of retained earnings. If a...
-
Why do companies report a gain or loss when they repurchase their bonds? Is this a real economic gain or loss?
-
How do credit (debt) ratings affect the cost of borrowing for a company?
-
On January 1 of the current year, Engel Company purchases \(100 \%\) of Ball Company for \(\$ 8.4\) million. At the time of acquisition, the fair value of Ball's tangible net assets (excluding...
-
How does the account "additional paid-in capital" (APIC) arise? Does the amount of APIC reported on the balance sheet relative to the common stock amount provide any information about the financial...
-
November 1 Accepted a $17,000, 180-day, 7% note from Kelly White in granting a time extension on her past-due account receivable. December 31 Adjusted the year-end accounts for the accrued interest...
-
a. Show that the expansion of q(x) in ascending powers of x can be approximated to 10 2x + Bx 2 + Cx 3 where B and C are constants to be found. b. Find the percentage error made in using the series...
-
The Sarbanes Oxley Act of 2002 (SOX) has important implications for the financial community. Explain two implications of SOX.
-
What percentage does PepsiCos allowance for doubtful accounts represent as a percent of its gross receivables?
-
Loganberry Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period. July 1 Established petty cash fund by writing a check on Rock Point...
-
The control volume shown in Figure \(P 2.15\) has steady, incompressible flow, and all properties are uniform at the inlet and outlet. For \(u_{1}=1.256 \mathrm{MJ} / \mathrm{kg}\) and...
-
(a) List the forces exerted on the spring-cart system of Figure 15.1 right after it is released, and draw a freebody diagram for each object in the system. (b) Which of these forces do work on the...
-
(a) In Figure 15.2e, the cart's displacement from the equilibrium position is maximum. Is the \(x\) component of the cart's acceleration at that instant positive, negative, or zero? (b) At which...
Study smarter with the SolutionInn App