Question

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During the last three months (April, May, and June) of the first fiscal year of operations of My Assistant, a few new types of transactions began to occur. These involve different ways the company is paying for some items, different ways the company is being paid, and the earning of interest. In all cases, keep in mind that economic events need to be reported when they Occur (when revenues are eamed and when expenses are incurred) regardless of when cash is exchanged. Below are summaries of transactions completed during April-June. 1. Paid the social media manager the amount owed from March 2. Collected $490 of accounts receivable from March 3. Purchased supplies of $100 on account. 4. Received $3,600 in exchange for completing 240 jobs, less a $180 fee due to PayPal. 5. In April, May, and June completed 140 jobs on account for clients with standing appointments. Each client was billed at the rate of $15 per job. 6. Collected $1,500 of accounts receivable from April and May. 7. Purchased and used gas of $740 in order to complete jobs. 8. Paid the newspaper $600 for advertising for April - September. 9. Collected three months' worth of service fees. $174. in advance from a client with a standing appointment. Because the client is paying advance, W.. offered a discounted rate of $14.50 per job. Services will be provided in June, July, and August 10. Paid the social media manager $530. This amount represented her monthly fee and fee for 230 of the jobs scheduled during April, May, and June. 11. Paid friends $960 to complete 80 jobs during April, May, and June. 12. Paid $75 on accounts payable. 13. Paid a salary of $1.200 to W.T. 14. Repaid W.T.'s aunt $200 of the total amount owed to her. 15. On June 30, purchased $500 of equipment to assist in the completion of jobs. Information for adjusting entries: 16. As of June 30, determined that the social media manager is owed her scheduling fee for 10 jobs scheduled and completed over the last few days of the month. 17. Determined that there are $30 of supplies on hand at June 30. 18. The advance payment for advertising (Event 8) was paid on April 1 and was for advertising beginning that same day. 19. The advance payment received from the client (Event 9) was received on June 1. For this particular client, services are provided equally in each month. 20. Recognized $5 of accrued interest revenue. For each of the above transactions, 1. Record the transactions in the appropriate general ledger accounts under an accounting equation. Record the amounts of revenue and expense in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. 2. Prepare the income statement statement of changes in stockholders' equity and totals necessary for the balance sheet and statement of cash flow for My Assistant, Inc. for its first fiscal year (July 1 - June 30).

Answer 1

Please find attached herewith general ledger accounts with transaction details:

Assets Liabilities Stockholder's Prod Acct Int Rec Equip Fees Pay Pay d Unearne Notes Rev Pay - 200 Acct Rec Supp Ad 490 15 Account title for RE C. Stock RE 100 1,687 25 Item Bal 4/1 1 2 Cash 1,507 -25 490 -25 -490 100 100 4 3,420 Revenue - $ 3600 3,420 Bank Charges - $ 180 2,100 Revenue 2,100 -1,500 6 1,500 -740 -740 Gas 600 8 9 174 -530 Cost of Goods sold -960 Cost of Goods sold -600 174 -530 -960 -75 -1,200 -200 -500 -75 12 13 -1,200 Salaries 14 -200 | 15 500 23 16 17 -85 18 -300 -23 Cost of Goods sold($530 for 230 jobs = 530/230*10) -85 Supplies Expense ($15 +$100-$30) -300 Advertising ($600 / 6months * 3 months) 58 Revenue ($174 / 3 months * 1 month) 5 Interest Income 3,432 19 -58 20 Bal 6/30 2,261 600 30 300 5 500 23 25 1 16 - 100

Based on above transactions, here's the Income statement, balance sheet and statement of cash flows:

3600+2100+58 530+960+23 5,758 1,513 4,245 1,200 300 740 Income Statement Revenue Less: Cost of Goods sold Gross Profit Less: Operating Expenses Salaries Advertising Gas Supplies Expense Total operating Expenses Operating Profit Add: Non-operating Income Interest Income Less: Non-operating Expenses Bank Charges Net Profit before interest and taxes 85 2,325 1,920 5 180 1,745 100 Stockholders Equity Common Stock Retained Earnings - Opening Balance Add:Net Income Retained Earnings - closing balance Total Stockholder's Equity 1,687 1,745 3,432 3,532

2,261 600 30 300 5 Balance Sheet Current Assets Cash Acct Rec Supp Prpd Ad Int Rec Fixed Asssets Equip Total Assets Current Liabilities Fees Pay Acct Pay Unearned Rev Equity: Stockholder's Equity Total liabilities and stockholders Equity 500 3,696 23 25 116 3,532 3,696

1,745 116-200-2 Statement of cash flow Net Income Add/ (Less): Non cash items Cash flow from Operating Activities Increase / (Decrease) in AP Increase / (Decrease) in Other Curr Liabilities (Increase) / Decrease in AR (Increase) /Decrease in Supplies (Increase) / Decrease in Other Current Assets Net Cash from Operating Activities Cash flow from Investing Activites Purchase of equipment Net Cash from Investing Activities Cash flow from financing activities 25 -86 -110 -15 -305 1,254 -300-5 -500 -500 Net Cash from Financing Activities Net Increase/decrease in cash Cash and Cash equivalents at beginning of the year Cash and Cash equivalents at end of the year 754 1,507 2,261