Question

The following transactions have taken place in April 2016 for Gregory Hopkins as he established his new online sales business:

1. April 1, opened his business checking account with $25,000

2. Purchased supplies on April 2nd for $1,200 of which he only uses 1/4 for the month

3. Purchased an online software for $2,500 on credit on April 4th

4. SKIP

5. The online cash sales totaled $15,000 for the month of April 2016

6. He purchased a computer for $2,500 cash on April 10th

7. He hired an assistant and paid him a salary of $3,000 for the month of April 2016

8. He withdrew $2,000 for his personal use

9. He billed a client for $5,000 on April 15 2016

10. He paid 1/2 of what he owed on the software purchased on April 4th

PREPARE T-ACCOUNTS

TRIAL BALANCE

INCOME STATEMENT

OWNER'S EQUITY STATEMENT

THE BALANCE SHEET FOR THE COMPANY AS OF APRIL 30 2016

Answer 1

	cash
	amount ($)		amount ($)
capital	25000	computer	2500
sales	15000	salary expense	3000
		drawings	2000
		accounts payable	1250
		ending balance	31250
total	40000	total	40000
	capital
	amount ($)		amount ($)
cash	2000	cash	25000
ending balance	23000
total	25000	total	25000
	supplies
	amount ($)		amount ($)
accounts payable	1200	supplies expense	300
		ending balance	900
total	1200	total	1200
	accounts payable
	amount ($)		amount ($)
cash	1250	supplies	1200
ending balance	2450	software	2500
total	3700	total	3700
	software
	amount ($)		amount ($)
accounts payable	2500	ending balance	2500
total	2500	total	2500
	sales
	amount ($)		amount ($)
retained earnings	20000	cash	15000
		accounts receivable	5000
total	20000	total	20000
	computer
	amount ($)		amount ($)
cash	2500	ending balance	2500
total	2500	total	2500
	salary expense
	amount ($)		amount ($)
cash	3000	retained earnings	3000
total	3000	total	3000
	accounts receivable
	amount ($)		amount ($)
sales	5000	ending balance	5000
total	5000	total	5000
	supplies expense
	amount ($)		amount ($)
supply	300	retained earnings	300
total	300	total	300
	retained earnings
	amount ($)		amount ($)
supplies expense	300	sales	20000
salary expense	3000
ending balance	16700
total	20000	total	20000

Gregory Hopkins
Trial Balance (amounts in $)
cash	31250
accounts receivable	5000
supplies	900
software	2500
computer	2500
accounts payable		2450
capital		23000
retained earnings		16700
total	42150	42150
Gregory Hopkins
Income Statement
For the period ended April 2016 (amounts in $)
sales
cash sales	15000
customer billied	5000
total sales	20000
expenses:
salary	3000
supplies expense	300
total expenses	3300
net income	16700
Gregory Hopkins
Balance Sheet
As of April 2016 (amounts in $)
Assets
Current assets:
cash	31250
accounts receivable	5000
supplies	900
Total current assets		37150
Long-term assets
software	2500
computer	2500
Total long term assets		5000
Total assets		42150
Liabilities and stockholders equity
Liabilities
Current liabilities
accounts payable	2450
Total liabilities		2450
Stockholders equity
Capital	23000
Retained earnings	16700
Total stockholders equity		39700
Total liabilities and stockholders equity		42150
Gregory Hopkins
Owners equity statement
For the period ended April 2016 (amounts in $)
Capital	25000
personal drawings	2000
Total capital		23000
Retained earnings
net income		16700
Total owners equity at the end		39700