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Workshop 2 Problems Student Q Search Shoot + Review View AA. Doo Home Insert Page Layout Formulas Data P . X cut Calibri (Body) 12 . A A Copy Paste format B IU. . .A AG X fx 1 9 Wrap Text General $ . % Morge & Center. ) Conditional Format Check Cell Insert Delete Format Formatting as Table Clear M N L Points: 24 hems1 pt. each - 24 points total 1 2.6 Recording transactions in the Accounting Equation and Financial Statements 2 Background information Donald Duck and Friends had the following events 3 in 2015 6 7 R 5 Ever Description of Event 1 Performed dry cleaning services for $40,000 cash 2 On February 1, 2018. ad $20,000 cash to rent office space for the coming year 3 Adjusted the counts for the amount of rent used during the year 10 al Complete the accounting .ation for the different transactions Denaid and Friends Camcurry Accounting Equation 14 Event Stockholders Equity Betained Gaming + Prepaid Rent 16 1 Total 22 Prepare an incom m ent for 2018 Donald Duck and Friends Income Statement For the Year Ended December 31.2018 Donald Duck and Friends Balance Sheet As of December 31.2015 41 Total Assets 45 Stockholders Equity 48 Total Stockholders Fouily 49 Total Liabides and Stockholsters Equity 21,667 21,667 $ Problem 2.1 Problem 2.2 Problem 2.3 Problem 24 Problem 2.5 Problem 2.6 + Ready Average: 1 Count: 2 Sum: 1 E M -- + 100%

Answer 1

Donald and Friends Company Accounting equation Event Assets Cash + Prepaid Stockholders Equity Retained Earnings $40,000 Rent 1 2 3 Totals Performed Services Prepaid Rent Rent Used ($20,000 * 11/12) $40.000 + -$20,000+ $20.000 -$18.333 $1,667 -$18.333 $21,667 $20,000 Donald Duck and Friends Income Statement For the Year Ended December 31, 2018 Revenue $40,000 Less: Expense $18,333 Net Income $21,667 Donald Duck and Friends Balance Sheet As of December 31, 2018 Assets Cash Prepaid rent Total Assets Liabilities $20.000 $1,667 $21,667 Total Liabilities SO Stockholders' Equity Retained Earning $21,667 Total Stockholders' Equity TotalLiabilities Stockholders' Equity $21,667 $21,667