Problem Set 1 ACC 300 Chapter 1 P1 3A On June 1 Beardsley Service Co was established by using the primary investment in the corporation amounting to 22 100 cash The assets and liabilities of the company last June 30 is listed and the revenues and expenses for the month of June the first month of their enterprise Cash 4 600 Notes payable 12 000 Accounts receivable 4 000 Accounts payable Service revenue 7 500 Supplies expense 2 400 Maintenance and repairs expense 400 Utilities expense 500 1 000 600 300 1 400 Equipment 26 000 Salaries and wages expense The corporation did not order any more stocks yet still paid dividends amounting Create a retained earnings statement income statement and a balance sheet explain the results Supplies Advertising expense 1 400 SO 4 5 AP Instructions For the month of June create a retained earnings statement and an income a statement also prepare a balance sheet at June 30 2012 b Precisely deliberate if the corporation s first month on the industry is a triumph c Explain the corporation s choice to allocate a dividend Marginal check figures in blue provide a key number to let you know you are on the right track a Net income 3 800 Ret earnings 2 400 Tot assets 37 000 A Income Statement for the month of June 30th 2012 Particulars Service Revenue A Less Expenses Supplies Expense Repairs and Maintenance Expense Advertising Expense Utilities Expense Salaries and wages Expense Total Expenses B Net Income A B Details 1 000 600 400 300 1 400 Amount 7 500 3 700 3 800 Statement of Retained Earnings for the month of June Particulars Net Income Less Dividend Retained Earnings Details 3 800 1 400 2 400 Balance sheet for the month of June Liabilities Capital 22100 2400 retained Earnings Notes Payable Accounts payable Total Amount 24 500 Assets Cash Amount 4 600 12 000 500 37 000 Accounts receivable Supplies Equipment Total 4 000 2 400 26 000 37 000 B The corporations first month on the industry can be a success This is on account of the company acquired profits or Net Income amounting 3 800 C The corporation acquired a net income of 3 800 and for this reason the corporation has confirmed a dividend of 1 400 Because of that the retained earnings balance declined amounting 2 400 Chapter 3 P3 5A On April 1 2010 Towne Architects are incorporated as licensed architects In the first month of the company in the industry these agreements and transactions occurred Apr 1 Common stock of the company was traded for the investment of stockholders amounting in 18 000 cash monthly 1 A secretary receptionist is hired with a weekly salary of 375 that is payable 2 Office rent was paid for the month amounting 900 3 Architectural supplies were accordingly purchased from the Spring Green Company amounting 1 300 10 Blueprints on a carport was accomplished and charged the customer 1 900 for services rendered 11 J Madison was charged with 700 cash for designing a new house 20 Acquired 2 800 cash for services rendered and accomplished to M Svetlana 30 1 500 was paid to the secretary receptionist for the month 30 Spring Green Company was paid 300 because of the account payable deadline The corporation utilized these accounts Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense and Rent Expense Journalize transactions post and prepare a trial balance SO 3 5 6 7 8 AP Instructions A Track the transactions and also explanations B Enlist to the ledger T accounts C On April 30 2012 formulate a trial balance Cash 18 800 Tot trial balance 24 400 A Apr 1 Cash 18 000 Common Stock 18 000 Shares of stock was issued for cash Apr 1 No entry not a transaction Apr 2 Rent Expense 900 Cash 900 Monthly office rent is paid Apr 3 Supplies 1 300 Accounts Payable 1 300 Bought materials accordingly from the Spring Green Company Apr 10 Accounts Receivable 1 900 Service Revenue 1 900 Services accomplished was billed to customers Apr 11 Cash 700 Unearned Service Revenue 700 Cash advance for future service was acquired Apr 20 Cash 2 800 Service Revenue 2 800 Cash for revenue earned was obtained Apr 30 Salaries and Wages Expense 1 500 Cash 1 500 Monthly salary was paid Apr 30 Accounts Payable 300 Cash 300 Spring Green Company was paid on account B Cash Apr 1 Apr 11 Apr 20 18 000 700 2 800 Apr 2 Apr 30 Apr 30 900 1 500 300 Bal 18 800 Salaries and Wages Expense Apr 30 Bal 1 500 1 500 Accounts Receivable Apr 10 1 900 Bal 1 900 Rent Expense Apr 2 Bal 900 900 Supplies Apr 3 Bal 1 300 1 300 Accounts Payable Apr 30 300 Apr 3 1 300 Bal 1 000 Unearned Service Revenue Apr 11 Bal 700 700 Common Stock Apr 1 Bal 18 000 18 000 Service Revenue Apr 10 Apr 20 Bal 1 900 2 800 4 700 C TOWNE ARCHITECTS INC Trial Balance April 30 2012 Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Service revenue Salaries and wages expense Rent expense Totals Debit 18 800 1 900 1 300 1 500 900 24 400 Credit 1 000 700 18 000 4 700 24 400