Question

Analysis profit help month end Problem 1-8A Analyzing transactions 105,7 eXcel CHECK FIGURE: Accounts payable balance, November 30, 2017 = $27.000 Larry Power, Capital balance, November 30, 2017 = $64,100 Larry Power started a new business in the name of Power Electrical on October 1, 2017. During October, a number of activities occurred and the following totals resulted at October 31, 2017 (shown in account- ing equation format): Problem Identify balances income si the colun increase complete Assets Liabilities Accounts Receivable $7,000 + Office Supplies $1.900 Cash $30,000+ + Office Equip. $28.000 Equity Larry Power, Capital $62,900 Electrical Equip. $14,000 Accounts Payable $18.000 + + + During November, the following occurred: 1 1 Nov. Ove 3 2 Se 3 Ac 5 4 Ра Nov. 6 5 O 8 6 Bc 15 7 S 16 Rented office space and paid cash for the month's rent of $7.200. Purchased electrical equipment for $18,000 from an electrician who was going out of business, by using $10,000 in personal funds and agreeing to pay the balance in 30 days. Purchased office supplies by paying $1,800 cash. Completed electrical work and immediately collected $2,000 for doing the work. Purchased $5,200 of office equipment on credit. Completed electrical work on credit in the amount of $6,000. Interviewed and hired a part-time electrician who will be paid $5,300 each month. He will begin work in three weeks. Purchased $1,000 of office supplies on credit. Paid for the office equipment purchased on November 8. Billed a client $4,800 for electrical work; the balance is due in 30 days. Received $6.000 for the work completed on November 15. Paid the office assistant's salary of $4,400. Paid the monthly utility bills of $3,600. Power withdrew $1,400 from the business for personal use. 8 В. 18 20 9 С 24 10 28 30 30 30

Answer 1

Transaction + Balance Sheet Assets Office Supplies + Office Equip. + 1,900 + 28,000 + Accounts Receivable 7,000 + Liabilities Accounts Payable 18,000 Electrical Equip 14,000 + + Equity Larry Power, Capital 62,900 (7,200) Expense 10,000 Investment, 10,000 invested from personal fund + = + + + + + Cash 30,000 + + (7,200) + + (1,800) + 2,000 + + + + 18,000 8,000 + + 1,800 + + + + + + + = + 2,000 Revenue + + + 5,200 + 5,200 + + + 6,000 + + + + 1-Nov 3-Nov 5-Nov 6-Nov 8-Nov 15-Nov 16-Nov 18-Nov 20-Nov 24-Nov 28-Nov 30-Nov 6,000 Revenue No entry as work will perform after 3 weeks. This will account in Dec + + + + + + + 1,000 + + = + + + 1,000 + (5,200)| + + + + + = 4,800 Revenue 4,800 (6,000) (5,200) + + 6,000 (4,400) (3,600) (1,400) + 30-Nov (4,400) Expense (3,600) Expense (1,400) Withdrawals 30-Nov + + + + + + + + + Total $ 14,400 +$ 11,800 + $ 4,700 +$ 33,200 + $ 32,000 = $ 27,000 +$ 69,100 For the transaction on Nov 28, revenue was already recorded on Nov 15. As per GAAP, revenue is recognised when service is performed and not when cash is actually received. On Nov 28, cash is received for the service performed on Nov 15. Please give likes for the work. Thanks & Regards.