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On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.A. Opened a business bank account with a deposit of $25,000 from personal funds.B. Purchased office supplies on account, $1,850.C. Paid creditor on account, $1,200.D. Earned sales commissions, receiving cash, $41,500.E. Paid rent on office and equipment for the month, $3,600.F. Withdrew cash for personal use, $4,000.G. Paid automobile expenses (including rental charge) for the month, $3,050, and miscellaneous expenses, $1,600.H. Paid office salaries, $5,000.I. Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900.Required:1. Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.Assets = Liabilities + Owners Equity Pat Pat Accounts Glenn, Glenn, Sales Salaries Rent Auto Supplies MiscellaneousCash + Supplies = Payable + Capital - Drawing + Commissions - Expense - Expense - Expense - Expense - Expense2. Prepare an income statement for July, a statement of owners equity for July, and a balance sheet as of July 31. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the statements.
The unadjusted trial balance for Sheffield Corp. is shown below. SHEFFIELD CORP. Trial Balance October 31, 2017 Debit CreditCash $15,220 Supplies 2,960 Prepaid Insurance 690 Equipment 5,290 Notes Payable $5,290Accounts Payable 2,270Unearned Service Revenue 1,990Common Stock 11,040Retained Earnings 0Dividends 560 Service Revenue 13,090Salaries and Wages Expense 4,000 Rent Expense 4,960 Supplies on hand at October 31 total $500. Expired insurance for the month is $100. Depreciation for the month is $50. Services related to unearned service revenue in October worth $600 were performed.Services performed but not recorded at October 31 are $300. Interest accrued at October 31 is $95. Accrued salaries at October 31 are $1, 625. Instructions: Prepare the adjusting entries for the items above.
The following trial balance of Sheffield Co. does not balanceSHEFFIELD CO. TRIAL BALANCE JUNE 30, 2017 Debit CreditCash $3,227Accounts Receivable $3,588 Supplies 1,157 Equipment 4,157 Accounts Payable 3,023Unearned Service Revenue 1,557 Common Stock 6,357Retained Earnings 3,357Service Revenue 2,737Salaries and Wages Expense 3,757 Office Expense 1,297 Totals $15,513 $18,701Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.2. The purchase of a computer printer on account for $857 was recorded as a debit to Supplies for $857 and a credit to Accounts Payable for $857.3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.4. A payment of $422 for telephone charges was recorded as a debit to Office Expense for $422 and a debit to Cash for $4225. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $682 was performed prior to June 30 (related to Unearned Service Revenue)6. A debit posting to Salaries and Wages Expense of $1,027 was omitted.7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $2608. A dividend of $932 was debited to Salaries and Wages Expense for $932 and credited to Cash for $932.Prepare a correct trial balance. Answer the missing blank part.SHEFFIELD CO. TRIAL BALANCE JUNE 30, 2017 Debit CreditCash $2563 $Accounts Receivable 3408 Supplies 300 Equipment _____ Accounts Payable 2557Unearned Service Revenue 875Common Stock 6357Retained Earnings 3357Dividends 932 Service Revenue 4220Office Expense _____ Salaries and Wages Expense _____ Totals 17366 17366
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 55,000 units of each product. Sales and costs for each product follow. Product T Product OSales $907,500 $907,500Variable costs 726,000 90,750 __ __Contribution margin 181,500 816,750Fixed costs 36,500 671,750 _ _Income before taxes 145,000 145,000Income taxes (30% rate) 43,500 43,500 __ __Net income $101,500 $101,500Compute the contribution margin ratio and the break-even point in dollar sales for each product. (Enter contribution margin ratio as a percentage rounded to 2 decimals.