Accounting Homework
E1-5 Cougar’s Accounting Services provides low – cost tax advice and preparation to those with financial need. At the end of the current period, the company reports the following amounts: Asset – 19000; Liabilities – 15000; Revenues – 28000; Expenses = 33000
Required:
1. Calculate net loss.
2. Calculate stockholders’ equity at the end of the period.
Net loss *Revenues – Expenses = (5000)
Stockholders * Assets – Liabilities = 4000
E1-6 Cash 5400 Salaries expense 2200 Accounts payable 3400 Retained earnings 3900 Utilities expense 1200 Supplies 13800 Service revenue 9300 Common stock 6000
Use only the appropriate accounts to prepare an income statement
Revenues Service revenue 9300 Expenses Salaries expense (2200) Utilities expense (1200) Net income 5900
E2-5 At the beginning of April, Owl Corporation has a balance of 13000 in the Retained Earnings account. During the month of April, Owl had the following external transactions.
1. Issue common stock for cash 11000
2. Provide services to customers on account 8500
3. Provide services to customers in exchange for cash 3200
4. Purchase equipment and pay cash 7600
5. Pay rent for April 1100
6. Pay employee for April 3500
7. Pay dividends to stockholders 2000
Required:
Using the external transactions above, compute the balance of Retained Earnings at April 30.
Retained earnings April 1 13000
Issue common stock for cash 11000 0
Provide services to customers on account 8500 8500
Provide services to customers in exchange for cash 3200 3200
Purchase equipment and pay cash 7600 0
Pay rent for April 1100 (1100)
Pay employee for April 3500 (3500)
Pay dividends to stockholders 2000 (2000)
Retained earnings April 30 18100
E2-6 Cash = Debit Service Revenue = Credit Salaries expense = Debit Accounts payable = Credit Equipment = Credit Retained earnings = Credit Utilities expense = Debit Accounts receivable = Credit Dividends = Debit Common stock = Credit
Required:
1. Calculate net loss.
2. Calculate stockholders’ equity at the end of the period.
Net loss *Revenues – Expenses = (5000)
Stockholders * Assets – Liabilities = 4000
E1-6 Cash 5400 Salaries expense 2200 Accounts payable 3400 Retained earnings 3900 Utilities expense 1200 Supplies 13800 Service revenue 9300 Common stock 6000
Use only the appropriate accounts to prepare an income statement
Revenues Service revenue 9300 Expenses Salaries expense (2200) Utilities expense (1200) Net income 5900
E2-5 At the beginning of April, Owl Corporation has a balance of 13000 in the Retained Earnings account. During the month of April, Owl had the following external transactions.
1. Issue common stock for cash 11000
2. Provide services to customers on account 8500
3. Provide services to customers in exchange for cash 3200
4. Purchase equipment and pay cash 7600
5. Pay rent for April 1100
6. Pay employee for April 3500
7. Pay dividends to stockholders 2000
Required:
Using the external transactions above, compute the balance of Retained Earnings at April 30.
Retained earnings April 1 13000
Issue common stock for cash 11000 0
Provide services to customers on account 8500 8500
Provide services to customers in exchange for cash 3200 3200
Purchase equipment and pay cash 7600 0
Pay rent for April 1100 (1100)
Pay employee for April 3500 (3500)
Pay dividends to stockholders 2000 (2000)
Retained earnings April 30 18100
E2-6 Cash = Debit Service Revenue = Credit Salaries expense = Debit Accounts payable = Credit Equipment = Credit Retained earnings = Credit Utilities expense = Debit Accounts receivable = Credit Dividends = Debit Common stock = Credit