Assume that you began a small business by (1) investing $10000 and (2)
borrowing $30000 from a bank. You (3) purchased equipment for $25000
cash and (4) purchased merchandise for $12000 on credit. During the
first month of operations, your company (5) sold merchandise for $24000
in cash. (6) Credit sales were $3000. (7) The cost of merchandise sold
during the month was $10000. By the end of the month, (8) $8000 had been
paid to the supplier of the merchandise. In addition, you (9) repaid
$300 of the amount borrowed from the bank. You (10) withdrew $800 from
the business for personal use.
Set up a simple accounting system and record transactions (1) through
(10).
Prepare an income statement for the first month of operations.
Prepare a balance sheet as of the end of the first month.
Business Homework Solutions
#5726
Financial Accounting: A) Set up a simple accounting system and record transactions (1) through (10). B) Prepare an income statement for the first month of operations. C) Prepare a balance sheet as of the end of the first month.
Assume that you began a small business by (1) investing $10000 and (2) borrowing $30000 from a bank. You (3) purchased equipment for $25000 cash and (4) purchased merchandise for $12000 on credit. During the first month of operations, your company (5) sold merchandise for $24000 in cash. (6) Credit sales were $3000. (7) The cost of merchandise sold during the month was $10000. By the end of the month, (8) $8000 had been paid to the supplier of the merchandise. In addition, you (9) repaid $300 of the amount borrowed from the bank. You (10) withdrew $800 from the business for personal use.
A) Set up a simple accounting system and record transactions (1) through (10).
B) Prepare an income statement for the first month of operations.
C) Prepare a balance sheet as of the end of the first month.
See attached file #1
Records transactions and prepares Balance Sheet and Income Statement.
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- Attached file(s):
- 5726.xls
- 5726.doc
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