Survey of Accounting Class 11 Packet Practice Problem #3 (Weeks #3-5 Material Li
ID: 2341333 • Letter: S
Question
Survey of Accounting Class 11 Packet Practice Problem #3 (Weeks #3-5 Material Little Lou Company was formed on September 1, 2018 and completed the following transactions during its first month of operations Acquired $5,000 cash from the issue of common stock. 2. 1. Paid $1,200 in advance for advertising for six months 3. Received $8,000 cash in advance for services to be performed in September, October November, and December 4. Purchased supplies of $2,000 on account 5. Borrowed $20,000 cash from the bank. 6. Provided services of $80,000 for cash. 7. Provided services of $60,000 on account 8. Collected $30,000 from customers on account 9. Paid for operating expenses with cash of $25,000 10. Paid $1,800 on accounts payable 11. Paid a $500 cash dividend to the stockholders Information for September adjusting entries 12. The advance payment for advertising was made on September 1 for a six-month term. 13. The cash advance for services to be provided in the future was collected on September 1 and the four-month contract started on that day 14. $150 of supplies remain on hand at the end of the month. 15. $4,200 of wages have been earned by employees but not yet paid 16. $100 of interest revenue has been earned and will be deposited in the company accounts on October1 Little Lou uses the following account titles: Accounts Payable, Accounts Receivable, Advertising Expense, Cash, Common Stock, Dividends, Interest Receivable, Interest Revenue, Notes Payable, Operating Expenses, Prepaid Advertising, Retained Earnings, Services Revenue Supplies, Supplies Expense, Unearned Revenue, Wages Expense, Wages Payable Requi 1. Add the asset, liability, and stockholders' equity accounts to the first blank line in the accounting equation provided (see separate file on Brightspace) Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table What amount of net income should Little Lou report for September? Prepare the September Statement of Changes in Stockholders' Equity for Little Lou What is the total amount of Assets, Liabilities, and Stockholders' Equity that Little Lou should report on its September 30 balance sheet? What is the total amount of cash flow that Little Lou should report related to (a) operating, (b) investing, and (c) financing activities? 2. 3. 4. 5. 6.Explanation / Answer
Journal Entries: Working:
Workiing-2: From Journal Entries:
Final Answer: From Working-2
Date Account Debit$ Credit$ 1 Cash 5000 1 Common Stock 5000 2 Prepaid Advertising 1200 2 Cash 1200 3 Cash 8000 3 Unearned Revenue 8000 4 Supplies 2000 4 Accounts Payable 2000 5 Cash 20000 5 Notes Payable 20000 6 Cash 80000 6 Services Revenue 80000 7 Accounts Receivable 60000 7 Services Revenue 60000 8 Cash 30000 8 Accounts Receivable 30000 9 Operating Expenses 25000 9 Cash 25000 10 Accounts Payable 1800 10 Cash 1800 11 Dividends 500 11 Cash 500 Adjusting: 12 Advertising Expense 200 1200/6 12 Prepaid Advertising 200 13 Unearned Revenue 2000 8000/4 13 Services Revenue 2000 14 Supplies Expense 1850 2000-150 14 Supplies 1850 15 Wages Expense 4200 15 Wages Payable 4200 16 Interest Receivable 100 16 Interest Revenue 100Related Questions
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