I have 4 Questions, but please only answer if you can get them done in a timely manner...I am being timed.

(TCO 1) Owner's equity on 1/1/2013 and 12/31/2013 were $130,000 and $140,000, respectively. Assets on 1/1/2013 and 12/31/2013 were $210,000 and $250,000, respectively. Liabilities on 1/1/2013 were $80,000. What is the amount of liabilities on 12/31/2013? Describe how you used the accounting equation to come up with your answer. Why is the accounting equation so important to accounting? (Points : 25)

2. (TCO 2) Journalize the following transactions: i. Began business by making a deposit in a company bank account of $36,000, in exchange for 3,600 shares of common stock. ii. Paid the premium on a 1-year insurance policy, $3,600. iii. Paid the current month's rent, $4,000. (Points : 25)

3. (TCO 3) Flamingo, Inc. has the following assets, liabilities, revenues, and expenses for the current year.

Equipment Rent expense Salary expense Cash Land Service revenue Note payable Supplies expense Interest payable Building Insurance expense Accounts receivable Common stock Accounts payable Utilities expense

$45,000 $24,000 $68,000 $10,000 $18,000 $125,000 $30,000 $4,000 $500 $100,000 $1,500 $14,500 $21,000 $19,500 $12,000

Prepare the Income Statement for ABC, Inc. for the current year.

(Points : 25)

4. (TCO 4) Prepare adjusting entries for the year ended December 31, 2013, based on the following data: i. A 2-year insurance policy costing $3,000 was purchased on September 30, 2013. ii. Employee salaries are owed for 3 days of a regular 5-day work week. Weekly payroll, $8,000. iii. The balance in Supplies before adjustment is $1,600. A physical count reveals $350 of supplies on hand on December 31, 2013. iv. Equipment was purchased at the beginning of the year for $20,000. The equipment has a useful life of 4 years and no salvage value. v. Unearned Service Revenue has a balance of $4,200 before adjustment. Records show that $2,725 of that amount has been earned by December 31, 2013. (Points : 26)

(TCO 1) Owner's equity on 1/1/2013 and 12/31/2013 were $130,000 and $140,000, respectively. Assets on 1/1/2013 and 12/31/2013 were $210,000 and $250,000, respectively. Liabilities on 1/1/2013 were $80,000. What is the amount of liabilities on 12/31/2013? Describe how you used the accounting equation to come up with your answer. Why is the accounting equation so important to accounting? (Points : 25) 2. (TCO 2) Journalize the following transactions: i. Began business by making a deposit in a company bank account of $36,000, in exchange for 3,600 shares of common stock. ii. Paid the premium on a 1-year insurance policy, $3,600. iii. Paid the current month's rent, $4,000. (Points : 25) 3. (TCO 3) Flamingo, Inc. has the following assets, liabilities, revenues, and expenses for the current year. Equipment Rent expense Salary expense Cash Land Service revenue Note payable Supplies expense Interest payable Building Insurance expense Accounts receivable Common stock Accounts payable Utilities expense $45,000 $24,000 $68,000 $10,000 $18,000 $125,000 $30,000 $4,000 $500 $100,000 $1,500 $14,500 $21,000 $19,500 $12,000 Prepare the Income Statement for ABC, Inc. for the current year. (Points : 25) 4. (TCO 4) Prepare adjusting entries for the year ended December 31, 2013, based on the following data: i. A 2-year insurance policy costing $3,000 was purchased on September 30, 2013. ii. Employee salaries are owed for 3 days of a regular 5-day work week. Weekly payroll, $8,000. iii. The balance in Supplies before adjustment is $1,600. A physical count reveals $350 of supplies on hand on December 31, 2013. iv. Equipment was purchased at the beginning of the year for $20,000. The equipment has a useful life of 4 years and no salvage value. v. Unearned Service Revenue has a balance of $4,200 before adjustment. Records show that $2,725 of that amount has been earned by December 31, 2013. (Points : 26) 1. 2. 3. Flamingo Inc. Income Statement For the year ended Particulars Service revenue Expenses Rent expense Salary expense Supplies Expenses Insurance Expense Utility Expenses Total Expenses Net Income Amount($) Amount($) 125,000 24,000 68,000 4,000 1,500 12,000 109,000 15,500 4. Preparation of adjustment entries for the year ended 31st Dec 2013 i. A 2-year insurance policy costing $3,000 was purchased on September 30, 2013. Date Account title and explanation Prepaid Insurance Cash To record the insurance expired during the year Post Ref Debit($) Credit($) 375 375 Note: Computation of insurance expense Insurance expense= No of months fall in the year * (prepaid insurance/period of insurance) = 3 months* (3,000/2years) = 3 months * 3000/24 months= $375 ii. Employee salaries are owed for 3 days of a regular 5-day work week. Weekly payroll, $8,000. Date Account title and explanation Post Ref Salary and wages expenses Salaries Payable To record the accrued salary expenses Debit($) Credit($) 4,800 4,800 Note: Computation of salary and wages expense Salary and wages= (weekly Payroll) * (Days worked in a week/Number of days in a week) = 8,000 * (3/5) = 4,800 iii. The balance in Supplies before adjustment is $1,600. A physical count reveals $350 of supplies on hand on December 31, 2013. Date Account title and explanation Post Ref Supplies Expense (1,600-350) supplies To record supplies consumed iv. Debit($) Credit($) 1,250 1,250 Equipment was purchased at the beginning of the year for $20,000. The equipment has a useful life of 4 years and no salvage value. Date Account title and explanation Depreciation expense-equipment Accumulated depreciationequipment To record the depreciation expense on equipment Post Ref Debit($) Credit($) 5,000 5,000 Note: Computation of depreciation expense Depreciation expense= (cost of the asset-salvage value)/ useful life of the asset = (20,000-0)/4 = 5,000 v. Unearned Service Revenue has a balance of $4,200 before adjustment. Records show that $2,725 of that amount has been earned by December 31, 2013. (Points : 26) Date Account title and explanation Unearned service revenue Service Revenue To record the service revenue earned Post Ref Debit($) Credit($) 2,725 2,725