Accounting Equation, Financial Statements, Journal Entries
Ramsey Corporation reported the following accounts and balances in its financial statements:
Accounts Payable $16,350
Contributed Capital $30,000
Retained Earnings $18,350
Arrange the accounts and balances into the accounting equating using the following equation and then answer the following questions.
Assets=liabilities owners equity
1.What is the total amount of assets?
2.What is the total amount of liabilities?
3.What is the total amount of owners equity?
2. After six months of operations, Right Way Lumber had the following revenues and expense balances:
Supplies expense 11,000
Service revenue 62,090
Utilities expense 6,200
Rent expense 14,700
Wages expense 13, 330.
Prepare an income statement in its proper format ending on june 30, 2009.
3. Jim Smith had trouble finding a job, so he decided to start his own sole proprietyship by the name of Designers Inc. Jim is a web site designer, and here are the results as of the end of the first year of his businesss
Service revenue 20,000
Contributed capital 21,000
Wage expense 4,100
Rent expense 5,000
Retained earnings 6,820
4. Utopia Dance Clubs, Inc., rented an old warehouse for its newest club on October 1, 2010. To receive a discount, Utopia paid $ 11,700 for 18 months of rent in advance. Assume no additional rent is paid in 2011 and 2012 and answer the following questions:
a. How much rent expense will be recognized for the year ended December 31, 2010
b. What will be the balance in the prepaid rent account at December 31, 2010?
c. How much rent expense will be recognized for the year ended December 31, 2011?
d. What will be the balance in the prepaid rent account of December 31, 2011?
e. How much rent expense will be recognized for the year ended December 31, 2012?
f. What will be the balance in the prepaid rent account at December 31,2012?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more