Question

Home Work II State whether the items are assets, liabilities, Owner's Equity, Revenue or expense accounts. State whether they are income statement or balance sheet accounts, State whether they are permanent or temporary account. What is the normal balance for the following accounts is a debit or credit: a. Cash b. Supplies C. Notes payable d. Land e. Service revenue f. Accounts receivable & Rent expense h. Furniture i. Accounts payable j. Equipment k. Owner's Equity I. Inventory m. Rent expense n. Notes receivable 0. Sales revenue p. Bonds payable q Wages payable II. Prepare an income statement and balance sheet for Sam Smith Consulting for the year beginning January 1, 2019 and ending December 31, 2019, with the information that follows. Salary expense $150,000 Notes payable $20,000 Office Equipment $10,000 Coonsulting Service Revenue $300,000 Accounts receivable $40,000 Accounts payable $ 100,000 Cash $168,000 Owner's Equity $100,000 Rent Expense $30,000 Supplies $ 2,000 Advertising expense $30,000

Answer 1

Sol Item Cash Supplies Notes Payables Land Service Revenue Accounts Receivable Rent Expense Furniture Accounts Payable Equipment Owner's Equity Inventory Rent Expense Notes Receivable Sales revenue Bonds Payable Wages payable Assets/Lalibilities/ Equity/Revenue/ Expense Asset Expense Liability Asset Revenue Asset Expense Asset Liability Asset Equity Asset Expense Asset Revenue Liability Liability Income Statement/ Balance Sheet Balance Sheet Income Statement Balance Sheet Balance Sheet Income Statement Balance Sheet Income Statement Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Income Statement Balance Sheet Income Statement Balance Sheet Balance Sheet Permanent/ Debit/ Temperary Credit Permanent Debit Temperary Debit Permanent Credit Permanent Debit Temperary Credit Permanent Debit Temperary Debit Permanent Debit Permanent Credit Permanent Debit Permanent Credit Permanent Debit Temperary Debit Permanent Debit Temperary Credit Permanent Credit Permanent Credit

$ Income Statement for the period January 1, 2019 to December 31, 2019 Revenue 2,019 Consulting Service revenue 300,000 Total Revenues-(A) $ 300,000 Expenses Salaries and wages Rent Advertisement Expense Total Expenses-(B) 150,000 30,000 30,000 210,000 $ Net Income-(A)-(B) 90,000

Balance Sheet as at December 31, 2019 Assets Current Assets Cash Accounts receivable Inventory Total current assets $ $ 168,000 40,000 2,000 210,000 $ $ Fixed (Long-Term) Assets Property, plant, and equipment Total fixed assets Total Assets 10,000 10,000 220,000 $ 100,000 Liabilities and Owner's Equity Current Liabilities Accounts payable Short-term loans Income taxes payable Accrued salaries and wages Unearned revenue Current portion of long-term debt Total current liabilities $ 100,000

20,000 Long-Term Liabilities Notes Payable Deferred income tax Other Total long-term liabilities $ 20,000 Owner's Equity 100,000 Total Liabilities and Owner's Equity 220,000