Topic: 01-27 Balance Sheet
231. Prepare a balance sheet in good form at December 31, 2020 for Draydon Insurance Co. from the following items:
Prepaid insurance
$2,000
Commissions earned
37,500
Accounts payable
1,800
Accounts receivable
100
John Ace, capital
21,200
Office equipment
5,000
Advertising expense
1,100
Cash
3,100
Land
15,000
Note payable
22,000
Office supplies
300
Salaries expense
6,500
Salaries payable
600
Building
50,000
Draydon Insurance Co.
Balance Sheet
December 31, 2020
Assets
Liabilities
Cash
$3,100
Accounts payable
$1,800
Accounts receivable
100
Salaries payable
600
Office supplies
300
Note payable
22,000
Prepaid insurance
2,000
Office equipment
5,000
Total Liabilities
24,400
Land
15,000
Equity
Building
50,000
John Ace, capital
51,100
__________
Total Assets
$75,000
Total Liabilities and Equity
$75,500
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Blooms: Apply
Difficulty: Medium
Learning Objective: 01-08 Prepare financial statements reflecting business transactions.
Topic: 01-27 Balance Sheet
232. At January 1, 2020, the records of Anna Turcza's law practice showed equity at $37,200. Profit for 2020 was $18,200, and Anna withdrew $3,000 in cash during the year. Prepare the statement of changes in equity for 2020.
Anna Turcza, Law
Statement of Changes in Equity
For the Year Ended December 31, 2020
Anna Turcza, capital, Jan 1
$37,200
Add:
Profit
18,200
Total
$55,400
Less: Withdrawals by owner
3,000
Anna Turcza, capital, Dec 31
$52,400
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Blooms: Apply
Difficulty: Easy
Learning Objective: 01-08 Prepare financial statements reflecting business transactions.
Topic: 01-26 Statement of Changes in Equity
On November 1, 2020, Jill Luckovich began Jill Luckovich Interior Design Co. with an initial investment of $6,725, and on November 30 her records showed the following (alphabetically arranged) account balances:
Accounts payable
$500
Office furniture
$5,025
Accounts receivable
1,250
Jill Luckovich, Withdrawals
100
Cash
2,300
Rent expense
2,200
Fees earned
4,400
Salaries expense
1,000
Notes payable
500
Telephone expense
250
Jill Luckovich, Capital
6,725
233. From the information given in reference, prepare an income statement for November.
Jill Luckovich Interior Design Co.
Income Statement
For the Month Ended November 30, 2020
Revenue:
Fees earned
$4,400
Operating Expenses:
Rent expense
$2,200
Salaries expense
1,000
Telephone expense
250
$3,450
Profit
$950
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-08 Prepare financial statements reflecting business transactions.
Topic: 01-26 Statement of Changes in Equity
234. From the information given in reference, prepare a statement of changes in equity for November.
Jill Luckovich Interior Design Co.
Statement of Changes in Equity
For the Month Ended November 30, 2020
Jill Luckovich, Capital, Nov 1
$6,725
Add:
Profit
950
Total
$7,675
Less: Withdrawals by owner
100
Jill Luckovich, Capital, Nov 30
$7,575
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Hard
Learning Objective: 01-08 Prepare financial statements reflecting business transactions.
Topic: 01-26 Statement of Changes in Equity
235. From the information given in reference, prepare a November 30 balance sheet.
Jill Luckovich Interior Design Co.