Scribd Logo
Upload

Welcome to Scribd!

  • 125 views

    Ae 112 Prelim - Solutions

    Uploaded by

    Rica Ann Roxas
    The document is a trial balance for the Great Accounting Firm for January 2021. It lists transactions with debits and credits for the month. It then poses three problems: 1) What is the firm's ending cash balance? 2) What should be reported as net income? 3) What is the company's ending capital? The solutions provided are: 1) The ending cash balance is $80,000 + $10,000 - $20,000 - $10,000 - $2,000 - $1,500 - $2,000 - $1,500 = $73,000. 2) Net income is total revenue ($20,000 + $20,000 = $40,000) minus total

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Ae 112 Prelim - Solutions

    Uploaded by

    Rica Ann Roxas
    125 views8 pages
    The document is a trial balance for the Great Accounting Firm for January 2021. It lists transactions with debits and credits for the month. It then poses three problems: 1) What is the firm's ending cash balance? 2) What should be reported as net income? 3) What is the company's ending capital? The solutions provided are: 1) The ending cash balance is $80,000 + $10,000 - $20,000 - $10,000 - $2,000 - $1,500 - $2,000 - $1,500 = $73,000. 2) Net income is total revenue ($20,000 + $20,000 = $40,000) minus total

    Original Description:

    Solution to Accounting Problems

    Original Title

    AE 112 PRELIM - SOLUTIONS

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document is a trial balance for the Great Accounting Firm for January 2021. It lists transactions with debits and credits for the month. It then poses three problems: 1) What is the firm's ending cash balance? 2) What should be reported as net income? 3) What is the company's ending capital? The solutions provided are: 1) The ending cash balance is $80,000 + $10,000 - $20,000 - $10,000 - $2,000 - $1,500 - $2,000 - $1,500 = $73,000. 2) Net income is total revenue ($20,000 + $20,000 = $40,000) minus total

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    125 views8 pages

    Ae 112 Prelim - Solutions

    Uploaded by

    Rica Ann Roxas
    The document is a trial balance for the Great Accounting Firm for January 2021. It lists transactions with debits and credits for the month. It then poses three problems: 1) What is the firm's ending cash balance? 2) What should be reported as net income? 3) What is the company's ending capital? The solutions provided are: 1) The ending cash balance is $80,000 + $10,000 - $20,000 - $10,000 - $2,000 - $1,500 - $2,000 - $1,500 = $73,000. 2) Net income is total revenue ($20,000 + $20,000 = $40,000) minus total

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

     

    DGreat Accounting Firm


    For the month of January 2021

    DEBIT CREDIT
    a. Cash 80,000
    Equipment 10,000 Problem A: What is the firm's cash ending balance?
    Capital 90,000 80,000+10,000
    b. Computer supplies 20,000 90,000
    Cash 20,000
    c. Office supplies 2,000 Using Problem A, how much should be reported as N
    Accounts Payable 2,000 Total Revenue - Total Expense = Net Income
    d. Cash 10,000 Total Expense: 2,000+1,500 = 3,500
    Service Revenue 10,000 Total Revenue: 20,000
    e. Accounts Payable 1,000 Net Income = 20,000-3,500 = 16,500
    Cash 1,000 Net Income = 16,500
    f. Salaries Expense 2,000
    Cash 2,000 Using Problem A, what is the company's capital-end
    g. Accounts Receivable 20,000 Beginning capital balance + investments - net incom
    Service Revenue 20,000 90,000-16,500 = 73,500
    h. Taxes and licensure expense 1,500 Capital-end = 73,500
    Cash 1,500
    i. Capital
    Office Supplies 1,700
    he firm's cash ending balance?

    w much should be reported as Net Income for the month ended January?
    l Expense = Net Income
    +1,500 = 3,500

    -3,500 = 16,500

    at is the company's capital-end?


    ance + investments - net income (or plus net loss) - draw = ending capital
    HANDWRITTEN SOLUTION
    Aristotle Go Advertising Agency
    Trial Balance
    December 31, 2020
    DEBIT CREDIT
    Cash 72900
    Accounts Receivable 25000
    Prepaid Expense 2300
    Equipment 43000
    Accounts Payable 12800
    Notes Payable 10000
    Accrued utilities expense 5,600
    Go, Capital 50500
    Service Revenue 99000
    Salaries Expense 15000
    Rent Expense 12000
    Supplies Expense 6900
    Miscellaneous Expense 800
    177900 177900
    DEBIT CREDIT
    Incorrect Entry
    Office Equipment 3000
    Accounts Receivable 3000
    (To record purchase on account)

    Correct Entry
    Computer Equipment 30000
    Accounts Payable 30000
    (To record purchase on account)

    Correct Entry
    Computer Equipment 30000
    Accounts Payable 30000
    (To correct entry)

    You might also like