Question

ube songs Ay See What's Hot Requirement PTM cleats BMX Videos - Vital. Bike list 527.87 XBL Free in Action games on se rk Saved Helps The account balances for the Patterson International Company on January 31, 2019, follow. The balances shown are after the first month of operations. $ 61,850 3,000 101 Cash 111 Accounts Receivable 121 Supplies 131 Prepaid Insurance 141 Equipment 142 Accum. Depr.-Equip. 202 Accounts Payable 301 Roger Patterson, Capital 302 Roger Patterson, Drawing $ 36,950 6,800 4,300 30,000 48,000 401 Fees Income 511 Advertising Expense 514 Depr. Expense-Equip. 517 Insurance Expense 518 Rent Expense 519 Salaries Expense 520 Supplies Expense 523 Telephone Expense 524 Utilities Expense 5000 13,400 12,000 80,000 4,000 700 1,700 Adjustments: a. Supplies used during the month amounted to $2,100. b. The amount in the Prepaid Insurance account represents a payment made on January 1, 2019, for six months of insurance coverage. c. The equipment, purchased on January 1, 2019, has an estimated useful life of 10 years with no salvage value. The firm uses the straight-line method of depreciation. Required: < Prev 2 of 5 !!! Next > w

Answer 1

Patterson International Company Worksheet For the period ending 31.1.2019 Accounts Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equip Accounts Payable Roger Patterson, Capital Roger Patterson, Drawing Fees Income Advertising Expense Depre - Expense - Equip. Insurance Expense Rent Expense Salaries Expense Supplies Expense Telephone Expense Utilities Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 36950 36950 6800 6800 4300 2100 2200 30000 5000 25000 48000 48000 400 400 12000 12000 80000 80000 4000 4000 61850 61850 3000 3000 400 400 5000 5000 5000 5000 13400 13400 2100 2100 700 700 1700 1700 153850 153850 7500 7500 1 54250 154250 48000 / ( 12x 10) = 400 30000 / 6 = 5000

61850 Statement of Income For the period ending 31.1.2019 Fees Income Less: Advertising Expense 3000 Depre - Expense - Equip. 400 Insurance Expense 5000 Rent Expense 5000 Salaries Expense 13400 Supplies Expense 2100 Telephone Expense 700 Utilities Expense 1700 Net Income 31300 30550 Statement of Owner's Equity For the period ending 31.1.2019 Roger Patterson, Capital 80000 Net Income 30550 110550 Roger Patterson, Drawing -4000 106550

Amounts in $ Amounts in $ Balance sheet As at 31.1.2019 Assets Current Assets Cash Accounts Receivable Supplies Prepaid Insurance 12000 Amounts in $ Amounts in $ Liabilities Current Liabilities 36950 Accounts Payable 6800 2200 25000 70950 Non Current Assets Equipment Accumulated Depreci Total Assets 48000 -400 Owner's Equity 47600 Roger Patterson, Capital 118550 Total Liabilities & Equity 106550 118550 If Equipment life was 12 years Depeciation = 48000 / 144 = 333 Net Income = 30550 + 400 - 333 = 30617