Problem 1-5B Objective: To record business transactions and prepare financial statements Cynthia Killingsworth is a CPA...

  

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Problem 1-5B Objective: To record business transactions and prepare financial statements Cynthia Killingsworth is a CPA who started her own practice on October 1, 20X1. During October, she completed the following transactions: (a) Cynthia invested the following in the firm: cash, $9,800; office supplies, $600; office equipment, $5,200. (b) Paid rent for the month, $650. (c) Purchased a computer for $2,400 on credit. (d) Purchased a copier for $10,000, paying $1,000 down and agreeing to pay the balance in three equal installments. (e) Performed services for cash, $1,350. (f) Wrote business checks for personal bills, $600. (g) Purchased a printer for cash, $595. (h) Purchased printer ink for cash, $90. (i) Performed services on credit, $1,800. (1) Paid utilities for the month, $295. (k) Paid cash for a new office desk, $900. (1) Collected $750 for the services performed in Transaction (i). D..inace Assets Accounts Cash + Receivable+ (m) Paid for the computer purchased in Transaction (c). (n) Paid salary of part-time employee, $600. (o) Paid first installment due on the copier purchased in Transaction (d). Directions: 1. Record Cynthia's October transactions in an expanded accounting equation with the following headings. Use the Description column to provide a brief explanation of each transaction involving owner's equity, such as rent expense, fees earned, or withdrawal. [Calculate balances only after Transaction (o).] Owner's Equity Office Office Supplies + Equipment = Liabilities + R Accounts Cynthia Killingsworth, Payable + Capital + Revenue 2. Prepare an income statement for October. 3. Prepare a statement of owner's equity for October. 4. Prepare an October 31 balance sheet in account form. Expenses Description Problem 1-5B Objective: To record business transactions and prepare financial statements Cynthia Killingsworth is a CPA who started her own practice on October 1, 20X1. During October, she completed the following transactions: (a) Cynthia invested the following in the firm: cash, $9,800; office supplies, $600; office equipment, $5,200. (b) Paid rent for the month, $650. (c) Purchased a computer for $2,400 on credit. (d) Purchased a copier for $10,000, paying $1,000 down and agreeing to pay the balance in three equal installments. (e) Performed services for cash, $1,350. (f) Wrote business checks for personal bills, $600. (g) Purchased a printer for cash, $595. (h) Purchased printer ink for cash, $90. (i) Performed services on credit, $1,800. (1) Paid utilities for the month, $295. (k) Paid cash for a new office desk, $900. (1) Collected $750 for the services performed in Transaction (i). D..inace Assets Accounts Cash + Receivable+ (m) Paid for the computer purchased in Transaction (c). (n) Paid salary of part-time employee, $600. (o) Paid first installment due on the copier purchased in Transaction (d). Directions: 1. Record Cynthia's October transactions in an expanded accounting equation with the following headings. Use the Description column to provide a brief explanation of each transaction involving owner's equity, such as rent expense, fees earned, or withdrawal. [Calculate balances only after Transaction (o).] Owner's Equity Office Office Supplies + Equipment = Liabilities + R Accounts Cynthia Killingsworth, Payable + Capital + Revenue 2. Prepare an income statement for October. 3. Prepare a statement of owner's equity for October. 4. Prepare an October 31 balance sheet in account form. Expenses Description

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Ans1 Ans2 Ans3 Ans4 8 Solution Date 2014 Apr 1 Dr 2015 Mar 31 32 Particulars Tirur Branch Account To ... View the full answer