The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees...

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The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense Miscellaneous expense Wages expense Accounts payable Accounts receivable Cash Common stock Land $968,835 222,830 19,375 465,040 24,220 Total assets 67,820 256,565 135,000 310,000 11,625 Supplies Cash dividends of $36,800 were paid during the year. Retained earnings as of June 1, 20Y5, were $262,000. Prepare the balance sheet as of May 31, 20Y6. When entering assets, enter them in order of liquidity. Paradise Travel Service Balance Sheet May 31, 2016 Assets Liabilities Stockholders' Equity Total stockholders' equity Total abilities and stockholders' equity Asset, liability, and stockholders' equity items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense Accounting Equation Sid Summitt is the stockholder and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Our Idol has assets of $629,000 and liabilities of $151,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2. $ b. Stockholders' equity as of December 31, 2013, assuming that assets decreased by $120,000 and liabilities decreased by $36,000 during 20Y3. $ Statement of stockholders' equity The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense $900,000 300,000 15,000 450,000 Miscellaneous expense Wages expense Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividends were paid during the year. Common stock had a balance of $60,000 and retained earnings had a balance of $300,000 as of June 1, 20Y5. Prepare a statement of stockholders' equity for the year ended May 31, 20Y6. Paradise Travel Service Statement of Stockholders' Equity For the Year Ended May 31, 20Y6 Common Stock Retained Earnings Total Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: Indicate the effect of each transaction on the following accounting equation elements (Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Common Stock increases by $18,000. Element 1. Received cash in exchange for common stock, $18,000. 2. Paid advertising expense, $4,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for delivery services on account, $14,700. 5. Received cash from customers on account, $8,200. Asset Common Stock Item Cash Direction Increases Increases The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense Miscellaneous expense Wages expense Accounts payable Accounts receivable Cash Common stock Land $968,835 222,830 19,375 465,040 24,220 Total assets 67,820 256,565 135,000 310,000 11,625 Supplies Cash dividends of $36,800 were paid during the year. Retained earnings as of June 1, 20Y5, were $262,000. Prepare the balance sheet as of May 31, 20Y6. When entering assets, enter them in order of liquidity. Paradise Travel Service Balance Sheet May 31, 2016 Assets Liabilities Stockholders' Equity Total stockholders' equity Total abilities and stockholders' equity Asset, liability, and stockholders' equity items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense Accounting Equation Sid Summitt is the stockholder and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Our Idol has assets of $629,000 and liabilities of $151,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2. $ b. Stockholders' equity as of December 31, 2013, assuming that assets decreased by $120,000 and liabilities decreased by $36,000 during 20Y3. $ Statement of stockholders' equity The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense $900,000 300,000 15,000 450,000 Miscellaneous expense Wages expense Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividends were paid during the year. Common stock had a balance of $60,000 and retained earnings had a balance of $300,000 as of June 1, 20Y5. Prepare a statement of stockholders' equity for the year ended May 31, 20Y6. Paradise Travel Service Statement of Stockholders' Equity For the Year Ended May 31, 20Y6 Common Stock Retained Earnings Total Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: Indicate the effect of each transaction on the following accounting equation elements (Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Common Stock increases by $18,000. Element 1. Received cash in exchange for common stock, $18,000. 2. Paid advertising expense, $4,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for delivery services on account, $14,700. 5. Received cash from customers on account, $8,200. Asset Common Stock Item Cash Direction Increases Increases The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense Miscellaneous expense Wages expense Accounts payable Accounts receivable Cash Common stock Land $968,835 222,830 19,375 465,040 24,220 Total assets 67,820 256,565 135,000 310,000 11,625 Supplies Cash dividends of $36,800 were paid during the year. Retained earnings as of June 1, 20Y5, were $262,000. Prepare the balance sheet as of May 31, 20Y6. When entering assets, enter them in order of liquidity. Paradise Travel Service Balance Sheet May 31, 2016 Assets Liabilities Stockholders' Equity Total stockholders' equity Total abilities and stockholders' equity Asset, liability, and stockholders' equity items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense Accounting Equation Sid Summitt is the stockholder and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Our Idol has assets of $629,000 and liabilities of $151,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2. $ b. Stockholders' equity as of December 31, 2013, assuming that assets decreased by $120,000 and liabilities decreased by $36,000 during 20Y3. $ Statement of stockholders' equity The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense $900,000 300,000 15,000 450,000 Miscellaneous expense Wages expense Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividends were paid during the year. Common stock had a balance of $60,000 and retained earnings had a balance of $300,000 as of June 1, 20Y5. Prepare a statement of stockholders' equity for the year ended May 31, 20Y6. Paradise Travel Service Statement of Stockholders' Equity For the Year Ended May 31, 20Y6 Common Stock Retained Earnings Total Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: Indicate the effect of each transaction on the following accounting equation elements (Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Common Stock increases by $18,000. Element 1. Received cash in exchange for common stock, $18,000. 2. Paid advertising expense, $4,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for delivery services on account, $14,700. 5. Received cash from customers on account, $8,200. Asset Common Stock Item Cash Direction Increases Increases The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense Miscellaneous expense Wages expense Accounts payable Accounts receivable Cash Common stock Land $968,835 222,830 19,375 465,040 24,220 Total assets 67,820 256,565 135,000 310,000 11,625 Supplies Cash dividends of $36,800 were paid during the year. Retained earnings as of June 1, 20Y5, were $262,000. Prepare the balance sheet as of May 31, 20Y6. When entering assets, enter them in order of liquidity. Paradise Travel Service Balance Sheet May 31, 2016 Assets Liabilities Stockholders' Equity Total stockholders' equity Total abilities and stockholders' equity Asset, liability, and stockholders' equity items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense Accounting Equation Sid Summitt is the stockholder and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Our Idol has assets of $629,000 and liabilities of $151,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2. $ b. Stockholders' equity as of December 31, 2013, assuming that assets decreased by $120,000 and liabilities decreased by $36,000 during 20Y3. $ Statement of stockholders' equity The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned Office expense $900,000 300,000 15,000 450,000 Miscellaneous expense Wages expense Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividends were paid during the year. Common stock had a balance of $60,000 and retained earnings had a balance of $300,000 as of June 1, 20Y5. Prepare a statement of stockholders' equity for the year ended May 31, 20Y6. Paradise Travel Service Statement of Stockholders' Equity For the Year Ended May 31, 20Y6 Common Stock Retained Earnings Total Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: Indicate the effect of each transaction on the following accounting equation elements (Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Common Stock increases by $18,000. Element 1. Received cash in exchange for common stock, $18,000. 2. Paid advertising expense, $4,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for delivery services on account, $14,700. 5. Received cash from customers on account, $8,200. Asset Common Stock Item Cash Direction Increases Increases

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