Question : 86) Assets and liabilities for Stan’s Garage at the beginning : 1212422

86) Assets and liabilities for Stan’s Garage at the beginning and end of the current accounting period are as follows:

 

January 1December 31

Total assets$450,000$690,000

Total liabilities$325,000$440,000

 

a) Determine net income or net loss for the current year. The owner did not invest any additional assets during the year and made no withdrawals.

 

b) Determine net income or net loss for the current year. The owner invested an additional $100,000 of assets into the business during the year and made no withdrawals.

87) For each of the following events, indicate the amount by which total assets increased or decreased.

a) Purchased $400 of supplies on account.

b) Earned $800 of revenue by performing a service for cash.

c) Received utilities bill for $500, to be paid in the following period.

d) Paid salaries to employees of $5,000.

e) Purchased equipment for $1,600 on account.

f) Purchased equipment for $5,000 cash.

g) Collected $475 from a customer on an account receivable.

h) Performed $3,000 of services on account.

88) For each of the following events, indicate the amount by which liabilities increased or decreased.

a) Owner invested cash of $20,000 and equipment valued at $10,500 into the business.

b) Purchased $600 of supplies on account.

c) Borrowed $10,000 from the bank, issuing a note payable.

d) Performed a service for $1,500 and immediately collected the cash.

e) Paid the employee salaries of $1,200.

f) Purchased equipment for $550 cash.

g) Received monthly rent bill of $1,300, to be paid in the following period.

h) Performed a service on account for $2,300.

89) Following is a list of events for Manning Cleaning for the month of April. Show the effects in dollars of these events on the accounting equation by completing the table below.

 

April1Owner invested $10,000 cash and equipment valued at

$25,000 into the business.

3Purchased $5,500 of equipment on account.

5Purchased $400 of supplies for cash.

10Bought a truck, paying $4,000 in cash and signing a note for $11,000.

14Performed services for a customer for $1,850 cash.

15Paid employee wages of $1,200.

18Paid $2,000 on the equipment purchased on April 3.

24Performed services for a customer on account, $2,500.

27Collected $500 from the customer of April 24.

30Owner withdrew $900 cash for personal use.

 

Date

Cash

A/R

Supp.

Equip

Truck

A/P

N/P

Capital

Apr. 1

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

18

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

 

 

30

 

 

 

 

 

 

 

 

Total