Problem 1-2A On August 31, the balance sheet of Marigold Corp. showed Cash $12,0
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Problem 1-2A On August 31, the balance sheet of Marigold Corp. showed Cash $12,000, Accounts Receivable $4,700, Supplies $600, Equipment $6,000, Accounts Payable $6,600, Common Stock $16,050, and Retained Earnings $650. During September, the following transactions occurrad. 1 Paid $3,500 cash for accounts payable due. 2. Collected $2,050 of accounts receivable. 3. Purchased additional equipment for $2,350, paying $900 in cash and the balance on account. 4. Recognized revenue of $7,900, of which $2,550 is collected in cash and the balance is due in October 5. Declared and paid a $2,250 cash dividend. 6. Paid salaries $2,100, rent for September $1,is0, and advertising expense $100 7. Incurred utilities expense for month on account $180 8. Received $12,000 from Capital Bank on a 6-month note payable Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) Stockholders' Equity Notes AccountsCommon +Retained Cash Receivable Supplies Equipment Payable Payable Stock Earnings Revenues Expenses Dividends 1. 2. 3. 4. 5 6. Salaries and wages expense Rent expense Advertising expense 7.Explanation / Answer
Marigold Corp.
Assets
Liabilities
Shareholder's Equity
Cash+
Accounts Receivable+
Supplies+
Equipment
Notes Payable+
Accounts Payable+
Common Stock+
Retained Earnings+
Revenues-
Expenses-
Devidends
Bal.
$ 12,000.00
$ 4,700.00
$ 600.00
$ 6,000.00
$ 6,600.00
$ 16,050.00
$ 650.00
1
$ (3,500.00)
$ (3,500.00)
2
$ 2,050.00
$ (2,050.00)
3
$ (900.00)
$ 2,350.00
$ 1,450.00
4
$ 2,550.00
$ 5,350.00
$ 7,900.00
5
$ (2,250.00)
$ 2,250.00
6a
$ (2,100.00)
$ 2,100.00
Salaries
6b
$ (1,150.00)
$ 1,150.00
Rent
6c
$ (100.00)
$ 100.00
Advertisement
7
$ 180.00
$ 180.00
Utilities
8
$ 12,000.00
$ 12,000.00
Ending Balance
$ 18,600.00
$ 8,000.00
$ 600.00
$ 8,350.00
$ 12,000.00
$ 4,730.00
$ 16,050.00
$ 650.00
$ 7,900.00
$ 3,530.00
$ 2,250.00
Marigold Corp
Income Statement
For the month ended September 30th
Revenue
$ 7,900.00
Less: Operating Expenses
Salaries Expense
$ 2,100.00
Rent Expense
$ 1,150.00
Advertisement expense
$ 100.00
Utilities Expense
$ 180.00
Total Operating Expenses
$ 3,530.00
Net Income
$ 4,370.00
Marigold Corp
Retained earnings Statement
For the month ended September 30th
Retained earnings 31st august
$ 650.00
Add: Profits earned during the period
$ 4,370.00
Subtotal
$ 5,020.00
Less: Dividends Paid
$ (2,250.00)
Retained earnings 3oth September
$ 2,770.00
Marigold Corp
Balance Sheet
As at September 30th
Assets
Current Asset
Cash
$ 18,600.00
Accounts Receivable
$ 8,000.00
Supplies
$ 600.00
Total Current Assets
$ 27,200.00
Equipment
$ 8,350.00
Total Assets
$ 35,550.00
Liabilities
Notes Payable
$ 12,000.00
Accounts payable
$ 4,730.00
Total Liabilities
$ 16,730.00
Shareholder's Equity
Common Stock
$ 16,050.00
Retained earnings
$ 2,770.00
Total Shareholder's Equity
$ 18,820.00
Total Liabilities and Shareholder’s Equity
$ 35,550.00
Marigold Corp.
Assets
Liabilities
Shareholder's Equity
Cash+
Accounts Receivable+
Supplies+
Equipment
Notes Payable+
Accounts Payable+
Common Stock+
Retained Earnings+
Revenues-
Expenses-
Devidends
Bal.
$ 12,000.00
$ 4,700.00
$ 600.00
$ 6,000.00
$ 6,600.00
$ 16,050.00
$ 650.00
1
$ (3,500.00)
$ (3,500.00)
2
$ 2,050.00
$ (2,050.00)
3
$ (900.00)
$ 2,350.00
$ 1,450.00
4
$ 2,550.00
$ 5,350.00
$ 7,900.00
5
$ (2,250.00)
$ 2,250.00
6a
$ (2,100.00)
$ 2,100.00
Salaries
6b
$ (1,150.00)
$ 1,150.00
Rent
6c
$ (100.00)
$ 100.00
Advertisement
7
$ 180.00
$ 180.00
Utilities
8
$ 12,000.00
$ 12,000.00
Ending Balance
$ 18,600.00
$ 8,000.00
$ 600.00
$ 8,350.00
$ 12,000.00
$ 4,730.00
$ 16,050.00
$ 650.00
$ 7,900.00
$ 3,530.00
$ 2,250.00
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