Mi Li started an interior design firm called Interiors by Li, on April 1, 2xxx. The...

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Mài Li started an interior design firm called Interiors by Li, on April 1, 2xxx. The following amounts summarize the financial position of her business on April 15, 2xxx, after the first two weeks of operations: Accounts Accounts Common Service Salaries Cash + Rec. + Equip. = Payable + Stock $5,000 Additional accounts needed may include: Inventory, Office Supplies, Prepaid Advertising, Sales Revenue, Cost of Merchandise, Service Revenue, Cost of Services, Rent Expense, Office Supplies Expense, Utilities Rev. Exp. $6,200 ($2,500) $1,880 $3,820 $27,000 $24,000 Expense, and Dividends. During the remainder of April, the following events occurred: a. 4/16: Wrote a check for $1,850 to pay rent for the month of April. b. 4/18: Paid dividends of $900 to the stockholders of Interiors by Li, Inc. c. 4/19: Performed services for a client and received cash of $7,500. d. 4/21: Collected cash from a customer on account, $400 e. 4/21: Paid off $2,000 of Accounts Payable f. 4/22: Incurred and paid salaries of $3,500 g. 4/23: Purchased supplies on account, $300 h. 4/24: Purchased inventory on account, $2,600. i. 4/25: Consulted on the interior design of a major office building and billed the client for services performed, $9,500 j. 4/27: Collected cash from a customer on account, $600 k. 4/28: Issued common stock to Mai Li in exchange for $5,000. I. 4/19: Paid $1,800 for advertising for three months (May, June, & July) in advance. m. 4/30: Sold design supplies that originally cost $475 to an interior design student for $980 cash. n. Accrued the utilities of $700 for the month of April because the invoice will not arrive until the middle of May. o. Ending office supplies balance was $112. Record the adjusting entry. Additional Information: It was determined that 55% of total salaries expense at the end of the month was cost of services and 45% of salaries expense was administrative. Requirements 1. Enter the beginning balances and the remaining transactions for the month of April into a worksheet. 2. Close the RED accounts as of the last day of April. 3. Prepare a basic/unclassified balance sheet for Interiors by Li, for the month ended April 30, 2xxx. Extra Credit – 5 Points 4. Prepare a classified balance sheet for Interiors by Li, for the month ended April 30, 2xxx. Mài Li started an interior design firm called Interiors by Li, on April 1, 2xxx. The following amounts summarize the financial position of her business on April 15, 2xxx, after the first two weeks of operations: Accounts Accounts Common Service Salaries Cash + Rec. + Equip. = Payable + Stock $5,000 Additional accounts needed may include: Inventory, Office Supplies, Prepaid Advertising, Sales Revenue, Cost of Merchandise, Service Revenue, Cost of Services, Rent Expense, Office Supplies Expense, Utilities Rev. Exp. $6,200 ($2,500) $1,880 $3,820 $27,000 $24,000 Expense, and Dividends. During the remainder of April, the following events occurred: a. 4/16: Wrote a check for $1,850 to pay rent for the month of April. b. 4/18: Paid dividends of $900 to the stockholders of Interiors by Li, Inc. c. 4/19: Performed services for a client and received cash of $7,500. d. 4/21: Collected cash from a customer on account, $400 e. 4/21: Paid off $2,000 of Accounts Payable f. 4/22: Incurred and paid salaries of $3,500 g. 4/23: Purchased supplies on account, $300 h. 4/24: Purchased inventory on account, $2,600. i. 4/25: Consulted on the interior design of a major office building and billed the client for services performed, $9,500 j. 4/27: Collected cash from a customer on account, $600 k. 4/28: Issued common stock to Mai Li in exchange for $5,000. I. 4/19: Paid $1,800 for advertising for three months (May, June, & July) in advance. m. 4/30: Sold design supplies that originally cost $475 to an interior design student for $980 cash. n. Accrued the utilities of $700 for the month of April because the invoice will not arrive until the middle of May. o. Ending office supplies balance was $112. Record the adjusting entry. Additional Information: It was determined that 55% of total salaries expense at the end of the month was cost of services and 45% of salaries expense was administrative. Requirements 1. Enter the beginning balances and the remaining transactions for the month of April into a worksheet. 2. Close the RED accounts as of the last day of April. 3. Prepare a basic/unclassified balance sheet for Interiors by Li, for the month ended April 30, 2xxx. Extra Credit – 5 Points 4. Prepare a classified balance sheet for Interiors by Li, for the month ended April 30, 2xxx.

Answer rating: 100% (QA)

Part 1 Beginning balance Salaries included in the cost of service 250055 1375 Salaries included in t... View the full answer