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Acct 2301 Chap 2A excel

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Acct 2301 Chap 2A excel Powered By Docstoc
					Chap 2

                 FAVIANA ADRIANO SHIPPING

                                                December 31
                                               2007    2008

Cash                                          $64,300     $15,640
Accounts receivable                            26,240      19,390
Office supplies                                 3,160       1,960
Office equipment                               44,000      44,000
Trucks                                        148,000     157,000
Building                                            0      80,000
Land                                                0      60,000
Accounts payable                                3,500      33,500
Note payable                                        0      40,000

Cost of building and land                                $140,000
Cash paid for building and land                           100,000
Note payable signed for building and land                  40,000
Cash Adriano invested in business                          35,000
Adriano's draws per month for personal use                  3,000

Check figures:
(2) Net income                                $ 23,290



The accounting records for Faviana Adriano Shipping is given in the excel problem. The assets and liabilities for Decemb

Late in December 2008, the business purchased a small office building and land for $140,000. It paid $100,000 cash towa
The owner, Faviana Adriano, had to invest $35,000 cash in the business to enable it to pay for the $100,000 cash. The ow
1. Prepare balance sheets for the business as of December 31, 2007 and December 31, 2008. Remember that total equ
2. By comparing equity amounts from the balance sheets each year and using the additional information presented in this
3. Prepare an income statement for the year ended December 31, 2008, using the following ending balances for revenue
Shipping services Revenue: $82,000
Moving Services Revenue: $ 4,000
Rent Expense:            $28,000
Salaries Expense:        $25,710
Utilities Expense:       $ 6,400
Misc Expense:           $ 2,600
he assets and liabilities for December 31, 2007 and December 31, 2008 are given.

 40,000. It paid $100,000 cash towards the purchase and signed a $40,000 note payable for the balance.
  pay for the $100,000 cash. The owner withdrew $3,000 cash per month ($3,000 x 12) for personal use.
31, 2008. Remember that total equity equals the difference between assets and liabilities.
 itional information presented in this problem, calculate how much net income the business earned during 2008.
owing ending balances for revenues and expenses:
             Faviana Adriano Shipping
                  Balance Sheet
               December 31, 2007

Assets
Cash
A/R
Office Supplies
Trucks
Office Equipment
Total Assets

Liabilities
A/P
Owner's Equity
Total Equity
Total Liabilities and equity



             Faviana Adriano Shipping
                  Balance Sheet
               December 31, 2008

Assets
Cash
A/R
Office Supplies
Trucks
Office Equipment
Building
Land
Total Assets

Liabilities
A/P
N/P
Total Liabilities
Owner's Equity
Total Equity
Total Liabilities and Equity
           Faviana Adriano Shipping
        Computation of 2008 Net Income

Equity, 12/31/2008
Equity, 12/31/2007
Increase in equity during 2008

Deduct owner's investment
Add withdrawals by owner
Net income earned in 2008



                  Faviana Adriano Shipping
                     Income Statement
             For Year Ended December 31, 2008

Revenues
Shipping services revenue
Moving services revenue
Total Revenues

Expenses
Rent expense
Salaries expense
Utilities expense
Misc expense
Total Expenses
Net Income

				
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