Question

Mailings Review View Help ses. Unless you need to edit, it's safer to stay in Protected View Enable Editing LO 2-2,2-3, 2-4 Exercise 2-88 Elefaccrue the neces They los experienced the wing events in Your 1 in your operation 1. Recived $20,000 cash from the common stock 2. Performed services on sccount for $38.000 3. Puld the t ype of $2.500. 4. Collected $21.000 of the accounts receivable 5. Recorded $15.000 of crud salaries at the end of the year 6. Pada $2.000 cash dividend to the shareholders Required Record the creation callediger counts under an accounting on. In the last column of the provide protect s for the Retained Earningsman. The instrum has been d e TALLEY INC. General Ledger Accounts Meet The for Rut. Eam Labies Stockholders Accounts Receivable Sa Payable Common Rated Stock Camings - 20.000 Talley, Inc. General Ledger Accounts for the Year Ended December 31, Year 1 Assets = Liabilities + Stockholders' Equity Accts. Rec. Salaries Pay. Event Cash 20,000 Common Retained Acct. Title Stock Earnings for RE 20,000 ils 36,500 17,000 - 15,000 - 20,000 18,500

Answer 1

Talley Inc. General Ledger Accounts for the Year ended December 31, Year 1 Event + + + Assets Liabilities Stockholders Equity Cash + Accts.Rec. = Salaries Payable + Common Stock + Retained Earnings Acct. Title for RE 20000 20000 38000 38000 Services on account -2500 -2500 Utility Expense 21000 + -21000 15000 - 15000 Salary accrued -2000 -2000 Dividend paid 36500 + 17000 15000 20000 18500 + + + + + + + + Totals

38000 Income Statement For the Period ending Dec. 31 Services on account Less: Utility Expense Salary Expense Net Income 2500 15000 17500 20500 Totals 0 0 Statement of Changes in Shareholders Equity For the Period ending Dec. 31 Common Retained Stock Earnings Beginning Add: Common Stock 20000 Net Income 20500 Dividends -2000 Totals 20000 18500 20000 20500 -2000 38500 20500 Statement of Cashflow For the Period ending Dec. 31 Cashflow from Operating Activity Net Income Adjustments: Increase in Accounts Receiv Increase in Salary Payable Cash generated from Operating Act. -17000 15000 - 2000 18500 Cashflow from Investing Activity 20000 -2000 Cashflow from Financing Activity Common Stock Dividends Cash generated from Financing Act. Net Increase in Cash Beginning Cash Balance Ending Cash Balance 18000 36500 36500

Amounts in $ Amounts in $ Balance sheet As at Dec 31 Assets Current Assets Cash Accounts Receivable Amounts in $ Amounts in $ Liabilities Current Liabilities 36500 Salaries Payable 17000 53500 15000 Shareholders Equity Common Stock Retained Earnings 53500 Total Liabilities & Equity 20000 18500 38500 53500 Total Assets