Question

Q1)

The following transactions are July activities of Noah’s Tik Tok Service, which creates videos.

1. Noah paid $882 to plumbers for repairing a broken pipe in the restrooms.
2. Noah paid $758 for the June electricity bill and received the July bill for $986, which will be paid in August.
3. Noah paid $552 to employees for work in July.

What are the total change to liabilities that Noah will recognize in July? If increase, leave as a positive number. If decreases, place a -Before the number. Example a decrease of $1,000 would be -1,000.

Q2)

During its first month of operations, Ava Corporation provided $153,763 of services to their customers. Ava’s costs included rent of $16,893 and salaries and wages totaling $18,872. At the end of the month, the board of directors approved a dividend of $5,497. What is the Retained Earnings for Ava Company at the end of the month?

Q3)

Eilish Company had the following account balances.

Accounts Payable $ 960
Accounts Receivable $ 1,853
Cash $ 3,209
Common Stock $ 1,244
Deferred Revenue $ 1,432

Eilish was missing the account balance for retained earnings. What is Eilish's total stockholders' equity?

Q4)

The following transactions are July activities of Noah’s Tik Tok Service, which creates videos.

1. Noah paid $789 to plumbers for repairing a broken pipe in the restrooms.
2. Noah paid $603 for the June electricity bill and received the July bill for $876, which will be paid in August.
3. Noah paid $408 to employees for work in June.

What are the total expenses Noah will recognize in July?

Q5)

The following transactions are July activities of Emma’s Tik Tok Service, which creates videos.

• Emma’s collected $6,447 from credit customers for services related to videos created in June.        
• Emma’s billed a customer for $962 for a video made on the last day of July. The bill is to be paid in August.                               
• On July 1, a customer gave Emma’s advance payments totaling $3,720 for the five months of work to be done equally staring in July
• Emma’s received $992 from video created for customers in July.

What is the revenue Emma will recognize in July?

Answer 1

	Liabilities
	July beg	Paid	July end
1)	882	-882	-
	758	-758	986
		-552	-
	1640		(986)
2)	Retained earnings: connecting Income and Expenses statement & Balance sheet
	Balance at beginning of year			Nil
	Net income attributable			117,998
	Dividend declared			(5,497)
	Balance at end of year			112,501
3)	Deferred revenue: a balance sheet account(liability) representing the obligation to deliver goods or perform services
	in the future for which billing has already occurred and/or cash has been received.
	Liability		Assets
	Stockholder's equity	3,914	Accounts Receivable	1,853
	Deferred revenue	1,432	Cash	3,209
	Accounts Payable	960	Stock	1,244
		6,306		6,306
4)	Nature of expenses	Amount
	Repairing services	789
	Electricity bill	876
	Total	1665