Essay on Accounting Seminar 2 Problems

Submitted By Justin-Hollingsworth
Words: 575
Pages: 3

P 3-3
Part 1
Balance Sheet
Income Statement
Part 2
Transactions
Assets
Liabilities
Stockholder Equity
Revenues
Expenses
Net Income
Where transaction is recorded on Statement of Cash Flows
(a) Purchased food and paper product; paid part in cash and rest on account.
+/-
+
NE
NE
NE
NE
O
(b)Purchased additional investments
+/-
NE
+
NE
NE
NE
I
(c)Incurred restaurant operating costs in company owned facilities; paid part in cash rest on account
-
+
-
NE
+
-
O
(d)Served food to customers for cash.
+
NE
+
+
NE
+
O
(e)Used food and paper products
-
NE
-
NE
NE
NE
O
(f)Paid cash dividends
-
NE
-
NE
NE
NE
F
(g)Sold franchises, receiving part in cash and the rest in notes due from franchises
+
NE
+
+
NE
+
NE
(h)Paid interest on debt incurred and due during the period
-
+
-
NE
+
-
F

P 3-4
Part 1 + 2
ASSETS
+ CASH -
(a)27600
(e)11000
(h)2675
(k)155
(m)2400
(d)1430
(f)11000
(g)500
(i)550
(j)1500
(l)130
28720

+ SUPPLIES - (d)1430

1430

+ INVENTORY -
(c)5500

(h)1200
(m)1210
3090

+ EQUIPMENT -
(f)2750

2750

Assets total = 44410

LIABILITIES - Accounts Payable +
(i)550
(c)5500

4950

- Notes Payable +

(e)11000

11000

Total Liabilities = 15950
STOCKHOLDER EQUITY - Contributed Capital +

(a)27600

27600

- Retained Earnings +

860

860

Total SE = 28460
REVENUE
- SALES REVENUE +

(h)3000
(m)2400

5400

Total Revenue = 5400
EXPENSES
+ COST OF GOODS -
(h)1200
(m)1210

2410

+ ADVERTISING -
(g)500

500

+ WAGE -
(j)1500

1500

+ REPAIRS -
(l)130

130

Total Expense = 4540

Part 3 – Financial Statements
Bri’s Sweets
Balance Sheet
February 28th, 2011
Assets
Current Assets Cash 28720 Accounts Receivable 170 Supplies 1430 Inventory 3090 Prepaid Expenses 5640 Total Current Assets 33410
Equipment 2750
Furniture and Fixtures 8250 Total Assets 44410
Liabilities
Accounts Payable 4950
Notes Payable 11000 Total Liabilities 15950
Stockholder Equity
Contributed Capital
Retained Earning
Total Stockholder Equity 28460
Total Liabilities + Stockholder Equity 44410

Bri’s Sweets
Statement of Income
Month Ending February 28th, 2011
Operating Revenues Sales Revenue 5400 Total Revenue 5400
Operating Expenses Cost of Goods 2410 Wage Expenses 1500 Repair Expenses 130
Advertising Expenses 500
Total Expenses 4540
Income Before Income Tax 860 Income Tax Expense
Net Income 860

Bri’s Sweets
Statement of Stockholders Equity
Month Ending February 28th, 2011 Contributed Capital Retained Earnings Total SE
Beginning Balance 27600 27600
(February 1st, 2011)

Net Income 860 860

Ending Balance 27600 860 28460
(February 28st, 2011)

Part 4 – Memo to Briana offering my opinion on the results of operations during the first month of business. ?
Considering this is only the first month of business, you are off to a good…