Kimberly Sam opened her beauty salon business on June 1, 2021. Based on the transactions her business
Question:
- Kimberly Sam opened her beauty salon business on June 1, 2021. Based on the transactions her business had, below is the transaction analysis completed for the month of June 2021.
- Based on the transaction analysis table provided, choose any three letters from (b) to (l), and based on the effect on the accounting equation, you are to write the 3 business transactions that occurred during the month, based on the letter you chose. Correct spelling is important (3 pts)
- Using the transaction analysis final balances at the end of the month (balances in orange font), prepare the following financial statements:
Instructions:
a.an income statement. (7 pts)
b.a statement of owner’s equity (5 pts)
c.a balance sheet (7 pts)
d.a statement of cash flows (10 pts) (focus on the cash column of the transaction analysis)
ASSETS | = | LIABILITIES + | OWNER’S EQUITY | ||||||||
Cash | Accounts Receivable | Supplies | Accounts payable | Kimberly Sam, capital | Kimberly Sam, drawings | Service Revenue | -Rent expense | -Salaries Expense | -Supplies Expense | -Repairs expense | |
a. | +10,000 | +10,000 | |||||||||
` | 10,000 | 10,000 | |||||||||
b. | +3,000 | +3,000 | |||||||||
bal | 10,000 | 3,000 | 3,000 | 10,000 | |||||||
c. | +3,500 | 3,500 | |||||||||
Bal | 10,000 | 3,500 | 3,000 | 3,000 | 10,000 | 3,500 | |||||
d. | -1,000 | -1,000 | |||||||||
bal | 9,000 | 3,500 | 3,000 | 3,000 | 10,000 | 3,500 | 1,000 | ||||
e. | +500 | +500 | |||||||||
Bal | 9,500 | 3,500 | 3,000 | 3,000 | 10,500 | 3,500 | 1,000 | ||||
f. | +1,050 | -1,050 | |||||||||
Bal | 10,550 | 2,450 | 3,000 | 3,000 | 10,500 | 3,500 | 1,000 | ||||
g. | +6,000 | +6,000 | |||||||||
Bal | 16,550 | 2,450 | 3,000 | 3,000 | 10,500 | 9,500 | 1,000 | ||||
h. | -1,500 | -1,500 | |||||||||
Bal | 15,050 | 2,450 | 3,000 | 3,000 | 10,500 | 9,500 | 1,000 | 1,500 | |||
i. | -950 | -950 | |||||||||
Bal | 14,100 | 2,450 | 3,000 | 2,050 | 10,500 | 9,500 | 1,000 | 1,500 | |||
j. | -800 | -800 | |||||||||
Bal | 13,300 | 2,450 | 3,000 | 2,050 | 10,500 | 800 | 9,500 | 1,000 | 1,500 | ||
k. | -700 | -700 | |||||||||
Bal | 12,600 | 2,450 | 3,000 | 2,050 | 10,500 |
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren