Explain, Show along with how and why this transaction fits into accounting equation. Looking at this it would make no sense that it would equal out in the books?
SEPT 1-SIGNED UP FOR CLASS AT COLLEGE. COST 1,000.00. PUT THIS ON BUSINESS CREDIT CARD
SEPT 20-TRANSFERRED 2,500 FROM PERSONAL SAVINGS TO BUSINESS CHECKING
SEPT 25 PURCHASED MATERIAL FROM BOOK STORE. CASH 250.00
SEPT 25-SIGNED UP FOR TEST. 400.00 ON BUSINESS CARD
OCT 15 PURCHASED 1 YEAR INSURANCE POLICY FOR BUSINESS 2400.00 ON BUSINESS CARD
OCT 20 PAID 250 ON BUSINESS CARD
OCT 25 500.00 CASH FOR TOOLS
OCT 30-200.00 ON ADVERTISING EXPENSE FOR BUSINESS CARDS
NOV 1-100.00 CASH PURCHASED GIFT BASKETS
NOV 10-60.00 CASH OFFICE SUPPLIES
NOV 20-10,000 FOR BUSINESS TRUCK. TOOK OUT LOAN FROM BANK
2 PARTS OF QUESTIONS:
1- Second portion which includes top part and put those and dec in ledger accounts (BELOW)
2- Prepare trail balance for Dec?I don't know what this is??
3- Also, does this look as if the business is going good and why? I feel it isn't but don't understand this in an accounting way. So if someone would show me then maybe I would understand.
Dec4-900.00 payment of 3 persons
Dec7-truck with gas-cash 43.oo
Dec11-7 people charged 2,100 received 1,500.00 billed remainder
Dec15 truck gas cash 43.oo
Dec 18-10 person charged 3,000.00 received 2,000.00. billed others
Dec18-350 office supplies
Dec 22 credit card charge tools 475.00
Dec2506 persons total 1,800.00 and received 600.00 billed other
Dec 28 paid 500 on credit card--interest 100
Dec 30-truck payment 250-85 interest
Dec 30-withdrawal 2,000.00 for personal use
Dec 30-received payment from clients 1,800.00
Additional info: I am not sure how to incorporate this chart either.
ACCOUNT NUMBER ACCOUNT TITLE
110 accounts receivable
120 prepaid insurance
130 offices supplies
210 credit card payable
220 truck loan payable
300 my, capital
310 my, drawing
400 inspection revenue
610 training expense
620 license expense
630 advertising expense
640 interest expense
650 gasoline expense
I have attached a word file that explains every single thing in detail. Like I explain in the word document, I tried to explain all the steps and procedures, but some of them require weeks of lecture to effectively explain, so I just went ahead and solved them. I also want to address the ...
1. Lists the dates and explained what part of the accounting equation and which accounts are affected by the corresponding transactions. This is for September through November.
2. Creates a chart for the accounts affected by the September through November transactions.
3. Lists the December transactions and the accounts affected by them.
4. Creates a chart for the accounts affected by SEPTEMBER THROUGH DECEMBER transactions.
5. Creates a trial balance
6. Analyzes whether the business is doing good or not.
Transaction Analysis - Various Accounts
Use the following column headings:
Transaction Cash Other Assets Liabilities Paid in Capital Retained Earnings
Treasury Stocks and Net Income
Enter the transaction letter in the first column and show the effect (if any) of each of the following transactions on each financial statement category by entering a plus (+) or minus (-) sign and the amount in the appropiate column. Do not show items that effect net income in the retained earnings column. You may also write the entries to record these transactions. You should assume that the transactions occurred in the listed chronological sequence and that no stock had been previously issued. ( Hint remember to consider appropriate effects pf previous transactions.)
A) Issued 1,500 shares of $100 par value preferred stock at par.
B) Issued 2,400 shares of $100 par value preferred stock in exchange for land that had appraised value of $306,000
C) Issued 69,000 shares of $5 par value common stock for $11 per share.
D) Purchased 13,500 shares of common stock for the treasury at $13 per share.
E) Sold 6,000 shares of the treasury stock purchased in transaction d for $14 per share.
F) Declared a cash dividend of $1.75 per share on the preferred stock outstanding, to be paid early next year.
G) Declared and issued a 5% stock dividend on the common stock when the market price per share of common stock was $15.00.View Full Posting Details