P$1-5$A Financial statement information about four different companies is as follows.

Instructions

$($a$)$ Determine the missing amounts. $($Hint: For example, to solve for $($a$),$ Assets $-$ Liabilities $-$

Owner's equity $=$$$45,000.)$

$($b$)$ Prepare the owner's equity statement for Ramirez Company.

$($c$)$ Write a memorandum explaining the sequence for preparing financial statements and

the interrelationship of the owner's equity statement to the income statement and balance sheet.

BE$2-10$ An inexperienced bookkeeper prepared the following trial balance. Prepare a correct

trial balance, assuming all account balances are normal.

WALTER COMPANY

Trial Balance

December $31,2012$

P$2-2$A Desiree Clark is a licensed CPA. During the first month of operations of her business,

the following events and transactions occurred.

May $1$ Clark invested $$20,000$ cash in her business.

$2$ Hired a secretary$-$receptionist at a salary of $$2,000$ per month.

$3$ Purchased $$2,500$ of supplies on account from Read Supply Company.

$7$ Paid office rent of $$900$ cash for the month.

$11$ Completed a tax assignment and billed client $$3,200$ for services provided.

$12$ Received $$3,500$ advance on a management consulting engagement.

$17$ Received cash of $$1,200$ for services completed for C$.$ Desmond Co$.$

$31$ Paid secretary$-$receptionist $$2,000$ salary for the month.

$31$ Paid $60\%$ of balance due Read Supply Company.

Desiree uses the following chart of accounts: No$.101$ Cash, No$.112$ Accounts Receivable, No$.126$

Supplies, No$.201$ Accounts Payable, No$.2019$ Unearned Service Revenue, No$.301$ Owner's Capital,

No$.400$ Service Revenue, No$.726$ Salaries and Wages Expense, and No$.729$ Rent Expense.

Instructions

$($a$)$ Journalize the transactions.

$($b$)$ Post to the ledger accounts.

$($c$)$ Prepare a trial balance on May $31,2012.$