Assume a Carson?\'s at the University of Saskatchewan ended the month of July 20
ID: 2509554 • Letter: A
Question
Assume a Carson?'s at the University of Saskatchewan ended the month of July 2014 with these? data:
Prepare the balance sheet. Begin with the heading of the statement.? Next, complete the balance sheet.
From the drop down list:
Accounts Payable
Cash
Common Shares
Equipment
Net Income
Office Supplies
Rent Expense
Retained Earnings
Salary Expense
Service Revenue
Total Assets
Total Liabilities and Shareholders Equity
Total Shareholders Equity
Utiilties Expense
Explanation / Answer
Solution:
Balance Sheet
University of Saskatchewan
As on 31st July 2014
Assets
Amount ($)
Liabilities
Amount ($)
Equipment
30,000
Accounts Payable
3,200
Cash
7,900(WN3)
Shareholders’ Equity
Common Shares
28,897
Retained Earnings
5,803(WN2)
Total Shareholders’ Equity
34,700
Total assets
37,900
Total liabilities and shareholders’ equity
37,900
Working Notes (WN):
1. Income Statement
Particulars
Amount ($)
Service Revenue
14,400
Less: Office supplies expense
1,190
Less: Rent expense
710
Less: Salary expense
4,100
Less: Utilities expense
197
Net Income
8,203
2. Statement of Retained earning
Particulars
Amount ($)
Beginning Balance
0
Add: Net Income (WN 1)
8,203
Less: Dividend paid
2,400
Ending Balance
5,803
3. Cash Statement
Particulars
Amount ($)
Beginning Balance
0
Add: Cash receipts
28,897
Add: Adjustments to reconcile net income to cash provided by operations
3,200
Add: Net income (WN1)
8,203
Less: Cash payments
30,000
Less: Dividend paid
2,400
Ending Balance of Cash
7,900
Assets
Amount ($)
Liabilities
Amount ($)
Equipment
30,000
Accounts Payable
3,200
Cash
7,900(WN3)
Shareholders’ Equity
Common Shares
28,897
Retained Earnings
5,803(WN2)
Total Shareholders’ Equity
34,700
Total assets
37,900
Total liabilities and shareholders’ equity
37,900
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