Question

Course: Managerial Accounting Subject: Caset1 1. Tanya purchased a trailer park, as a sole proprietorship, on Jan 1, 2010. She did not record her transactions during the first months of the year. It's April 30, and she just kept a record of her cash payments and cash receipts as follows Description Cash Recipes Cash Payments Wage Investment for the business shares Rental revenue $200,000 120.000 Equipments 30,000 24,000 Insurance 3.600 Maintenance 6,000 Supplies 1.500 Utilities 1.600 Tanya's withdrawal 36.000 She also shows the following information from her documents 1. There is an unpaid invoice for $1.000 maintenance 2. One of the employees has not yet been paid for 10 days of work. The wage is 515 per hour and the work day is 8 hours 3. Equipments will depreciate equally over 4 years and there is no residual value at the end of their life time. 4. Insurance was prepaid on Jan 1" for the entire year 5. The balance of supplies was $300 at the end of April. 6. There was an unpaid utility bill of $800. 7. One of the tenants has not yet paid her Aprilrent for $1.200. & Included in S120,000 rental revenue is the amount that a tenant has prepaid for a year starting in January 2010. The rent is 5300 per month Value AR Write the balance of each given item (in the table) on April 30, 2010, Value Capital Cash Utilities Payable Prepaid Insurance Maintenance Payable Supplies Wapes Payalle Uneamed Revenue Current lite Revenue Long Terme Depreciation of Equipments Current Assets Unlities experts Long Term Assets Wages Exp Total Assets Maintenance Expo Total Liabilities Supply expense Cranes Equity Insurance Expense Owner Capital revenue-Owner's Withdrawal Total Expenses

Answer 1

Item A/R(Rent Receivable) Cash Prepaid Insurance Supplies Value($) 200,000 800 1,000 1,200 2,400 5,400 Revenue Depreciation of Equipment Utilities Expenses Wages Expenses Maintenance Expenses Supply Expenses Insurance Expenses Balances of given item on April 30,2010 Value($) Item 1,200 Capital 217,300 Utilities Payable 2,400 Maintenance Payable 300 Wages Payable Unearned Revenue 118,800 Current Liabilities 2,000 Long Term Liabilities 2,400 Current Assets 31,200 Long Term Assets(Equipment) 7,000 Total Assets 1,200 Total Liabilities 1,200 Owner's Equity=A-L owners Capital+Revenue- 45,000 Owner's Withdrawls-Expenses 221,200 22,000 243,200 5,400 237,800 Total Expenses 237,800

Workings: Rental Revenue $ Less: Unearned Revenue (300*8) $ Add: Rent Receivable $ $ 120,000.00 2,400.00 1,200.00 118,800.00 $ 30,000.00 Wages Cash Paid Add: Payable($15per hr*8hrs* 10 days) $ $ 1,200.00 31,200.00 $ 24,000.00 Equipments Purchase Value Less: Depreciation(24000/48months* 4 months) $ $ 2,000.00 22,000.00 Insurance Paid Less: Prepaid(3600/12*8) $ $ $ 3,600.00 2,400.00 1,200.00 Maintenance Cash Paid Payable $ $ $ 6,000.00 1,000.00 7,000.00 Supplies Cash Paid Less: Ending Inventory $ $ $ $ 1,500.00 300.00 1,200.00 Utilities Cash Paid Add:Payable $ $ $ 1,600.00 800.00 2,400.00