Question

A Alan Simmon CPA Simmon experienced the following events during the organising m on receny opened on accounting firm on April 1, which he operates as a corporation. The name of the new entity phase of the new business and its first month of operations in 2018 Co the icon to view the transactions) Read the requirements Requirement 1. Analyze the effects of the events on the accounting equation of Alan Simmon, CPA Analyze the events chronologically, one transaction at a time, beginning with the transaction on the 5th. For each transaction that follows the transaction on these calculate the balance in each account for analyzing its efect on the accounting equation A c ting the ending balance of each account on the 30th, calculate total assets and totallaties and equity. Complete only the necessary answer boxes for your transaction lines. Do noter any rers for your transaction lines Carry down all balances to the Baline, including zero balance accounts, entering a for any rere balances Enter a decrease in an account with a minus sign or parentheses Abbreviations used AP Accounts Payable: AR Accounts Receivable: Com. Common Contr. Contributed: Div-Dividends: Exp Expense Fum, Furniture Lisb-Labilities: Rev Revenue Sup. Supplies Util Units) More to Apr 5 Simmon deposited $70,000 in a new business bank accountitled Alan Simmon, CPA. The business issued common stock to Simmon. 6 Paid $500 cash for letterhead stationery for new office 7 Purchased umibare for the office on account. $9200 10 Consulted with tax client and received $1,000 for services rendered 11 Paldies $250 12 Finished tax hearings on behalf of a client and submitted a bil for accounting services, $10,000 18 Paid offront, 12.000 25 Received amount due from client that was billed on April 12. 27 Paid amount of accounts payable created on April 7 30 Cash dividends of $2.500 were paid to stockholders Choose from any is Save for later

Answer 1

Alan Simmon CPA Requirement 1 + Cash 70000 -500 69500 + + + + + + + + + + + + + + + 69500 1000 70500 -250 70250 o + + + + 0 + + + + 0 + + + Date Apr-05 Apr-06 Bal. Apr-07 Bal. Apr-10 Bal. Apr-11 Bal. Apr-12 Bal. Apr-18 Bal. Apr-25 Bal. Apr-27 Bal. Apr-30 Bal. Assets Liabilities Contri.Capital Retained Earnings + Accounts Receivable + Office Supplies + Furniture = Accounts Payable + Common Stock - Div. + Service Revenue - Rent Expense - Utility Expense 70000 500 500 + 0 = 0 70000 - 0 9200 9200 500 9200 = 9200 70000 - 0 0 1000 500 9200 9200 70000 1000 250 500 9200 9200 70000 1000 250 10000 10000 10000 500 9200 9200 70000 - 0 + 11000 0 250 2000 10000 500 9200 9200 70000 11000 2000 250 -10000 500 9200 9200 70000 - 0 + 11000 2000 -9200 9200 70000 - 0 11000 2000 250 - 2500 + + 500 + 9200 70000 - 2500 + 11000 2000 250 76250 76250 + + + + + + + - + 0 + 70250 -2000 68250 10000 78250 -9200 69050 -2500 66550 + 250 + + 500 + +

Requirement 1 11000 Statement of Income For the period ending Apr 30 Service Revenue Less: Rent Expense Utility Expense Net Income 2000 250 2250 8750 Statement of Retained Earnings For the period ending Apr 30 Net Income Less:Dividends 8750 -2500 6250

Requirement 3 Balance sheet As at Apr 30 Assets Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Assets Current Liabilities Cash 66550 Office Supplies 500 67050 Shareholders Equitt Non Current Assets Common Stock 70000 Furniture 9200 Retained Earnings 6250 76250 Total Assets 76250 Total Liabilities & Equity 76250