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CIE587 HW2 Template

This document contains transactions and balance sheets for a construction company for July 31st and August 31st. It shows materials, labor, subcontracts, revenue, general expenses, assets, liabilities, and owner's equity for the company over this period. The company purchased materials, incurred labor costs, completed subcontract work, billed and received payment for a project. It also paid expenses, purchased equipment, and the owner withdrew cash. The income statement and ending balance sheet are provided for August 31st.

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ahmad
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63 views11 pages

CIE587 HW2 Template

This document contains transactions and balance sheets for a construction company for July 31st and August 31st. It shows materials, labor, subcontracts, revenue, general expenses, assets, liabilities, and owner's equity for the company over this period. The company purchased materials, incurred labor costs, completed subcontract work, billed and received payment for a project. It also paid expenses, purchased equipment, and the owner withdrew cash. The income statement and ending balance sheet are provided for August 31st.

Uploaded by

ahmad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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CIE587 - HW2 Solution

Item

Balance sheet as of July 31, 20XX


1
a
b
c
d

2
a
b
c

3
a
b
c

4
a
b

5
a
b

c
d
e
f
g
h
i
j

k
Balance sheet as of August 31, 20XX
CIE587 - HW2 Solution

Transactions

Balance sheet as of July 31, 20XX


Materials
Purchased $20,000 on credit for Argus project
Purchased $14,000 for cash ($10,000 of them to be used on Argus project)
Fabricated and/or Installed $30,000
Returned $2,000 for credit

Labor
Incurred $26,000
Paid $3,000 for labor incurred in July
Paid $24,000 for labor incurred in August

Subcontracts
Incurred $74,000 in subcontract costs on Argus
Paid $56,000 on past subcontract bills
Paid $13,000 on Argus subcontracts

Revenue/Billing
Performed and billed $156,000 for total contract amount on Argus
Received $127,000 on work completed before August

General and Administrative


Paid $10,000 as office worker payroll
Purchased and paid $7,200 for a new equipment (on August 15)with 3 year life
Equipment depreclation by end of August (assuming salvage value=0) (assuming 17 days
from 15 to 31)
Purchased $6,000 office supplies on credit
Purchased $4,000 office supplies for cash
Paid $8,000 for office supplies purchased in August and earlier
Loaned new superintendent $3,000 for personal expenses
August equipment depreclation expense = $2,000
Leased crane (on August 1) from dealer for 2 years for $24,000
Paid $4,000 on crane lease
You (as owner) withdrew $7,000 from the company to pay personal expenses

Rented out a backhoe for 4 months at $1,500/month (Contract signed on August 15) and
your company received half of the total rent in cash as advance payment
Performing half a month of prepaid services
Balance sheet as of August 31, 20XX
Assets -

+Accounts +Notes +Prepaid


Cash +Inventory +Equipment -
Receivable Receivable Expense
$ 43,000 $ 140,000 $ 12,000 $ - $ 49,000 $ 6,000

$ 20,000
$ (14,000) $ 14,000
$ (30,000)
$ (2,000)

$ (3,000)
$ (24,000)

$ (56,000)
$ (13,000)

$ 156,000
$ 127,000 $ (127,000)

$ (10,000)
$ (7,200) $ 7,200
$ (112)

$ (4,000)
$ (8,000)
$ (3,000) $ 3,000
$ (2,000)

$ (4,000) $ 3,000
$ (7,000)

$ 3,000
$ 19,800 $ 169,000 $ 14,000 $ 3,000 $ 54,088 $ 9,000

$ (153,200)
Liabilities + Owners' Equity

Accounts +Notes +Prepaid


+ Owners' Equity
Payable Payable Services
$ 73,000 $ - $ 7,000 $ 170,000

$ 20,000

$ (30,000)
$ (2,000)

$ 26,000 $ (26,000)
$ (3,000)
$ (24,000)

$ 74,000 $ (74,000)
$ (56,000)
$ (13,000)

$ 156,000

$ (10,000)

$ (112)
$ 6,000 $ (6,000)
$ (4,000)
$ (8,000)

$ (2,000)

$ (1,000)
$ (7,000)

$ 3,000
$ (750) $ 750
$ 117,000 $ 9,250 $ 142,638
PART 2)
Income Statement
For the Month Ending August 31, 20XX

Contract revenue earned

Cost of revenue earned


Gross profit
General and administrative
expenses
Income from operations
Other income
Owner withdrew cash
Net income

Balance Sheet
August 31, 20XX

Assets

Cash $19,800.00
Account Receivable $169,000.00
Inventory $14,000.00
Notes Receivable $3,000.00
Equipment $54,088.00
Prepaid Expenses $9,000.00

Total Assets $268,888.00


nt
ust 31, 20XX

$156,000.00

$130,000.00
$26,000.00

$23,112.00
$2,888.00
$750.00
$7,000.00

nce Sheet
st 31, 20XX

Liabilities and Owners Equity

Account Payable $117,000.00


Notes Payable
Prepaid Service $9,250.00
Total Liabilities $126,250.00

Owner's Equity $142,638.00

Total Liab. & O.E. $268,888.00 note in depreciaaition I used it 17 days since aug is 31
ce aug is 31

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