Question

ities that will n ities Audits of financial statements performed by publ level of integrity to the financial statements and are a má market for trading related to publicly held companies. 26 November transactions for Camindo Co. are as follows a. Received cash of $60,000 from investors in exchange for common stock. b. Provided services of $16,300 on account. c. Purchased supplies on account $750. Received cash of $11,800 from clients for services previously billed. Received S6,250 in cash for services provided for clients f. Paid S600 on account for supplies that had been purchased. g Paid cash $3,380 for a one-year insura h. Paid for the following expenses in cash: wages, $7,800; utilities $3,750. , $1,000; rent i. Paid cash dividends of S2,300 to stockholders. Prepare Journal Entries for items above Fundamentals Accounting Test 27 Post the transactions in question 26 to T Accounts 28 Prepare a Trial Balance based on T Accounts prepared Description 29 [Prepare Income Statement from the Trial Balance prepared Prepare The Statement of Owners Equity from the Trial Balance and the Income Statement prepared 31 Prepare Balance Sheet

Answer 1

Camindo Co Journal Enteries EventParticulars Debit in $ Credit in $ a Cash a/c Dr. 60000 To Common Stock (Common Stock issued for cash) b. Accounts Receivable a/c Dr 16300 To Service Revenue 16300 (Services provided on account) c. Supplies a/c Dr. To Accounts Payable 750 (Supplies purchased on account) d. Cash a/c Dr. 11800 To Accounts Receivable 11800 (Cash received from debtors e. Cash a/c Dr. 6250 To Service Revenue 6250 (Service performed for cash f. Accounts Payable a/c Dr 600 To Cash 600 (Cash paid to creditors) Prepaid Insurance a/c Dr 3380 To Cash (One year insurance paid in advance) 3380 h. Wages Expense a/c Dr Dr Utilities Expense a/c Rent Expense a/c 7800 1000 3750 To Cash (Expenses paid in cash) i. Dividends a/c Dr. 2300 To Cash 2300 (Dividends paid to Stockholders)

Trial Balance For the month ending November 30 Particulars Cash Accounts Receivable Prepaid Insurance Supplies Accounts Payable Common Stock Dividends Service Revenue Wages Expense Utilities Expense Rent Expense Totals Debit in $ Credit in $ 59220 4500 3380 750 150 60000 2300 22550 7800 1000 3750 82700 82700 Statement of Income For the month ending November 30 Service Revenue Less: Wages Expense Utilities Expense Rent Expense Net income 22550 7800 1000 3750 12550 10000 Statement of Retained Earnings For the month ending November 30 Net income Dividends 10000 2300 7700

Balancesheet As at 31.12.2012 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Supplies Amounts in $ Amounts in$ Liabilities Amounts in $ Amounts in $ Current Liabilities Accounts Payable 59220 4500 3380 750 150 67850 Shareholders Equity Common Stock Retained Earnings 7700 67700 Total Assets 67850 Total Liabilities & Equity 67850