Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

please answer all the required questions in order. thank you. During the month o

ID: 2517493 • Letter: P

Question

please answer all the required questions in order. thank you.

During the month of October of the current year, Dan's Accounting Service was opened The following transactions occurred. Oct 1 Oct 1 Dan sold $70,000 worth of stock (50 shares) to start the business Dan purchased $9,500 worth of office equipment on account from Noe's Furniture Supply Oct 1 Dan paid October's rent on the office. He wrote a check for $2,500 Oct 2 Dan purchased $400 worth of office supplies for cash Oct 4 The telephone was installed. We paid $95 (Utilities Expense) Oct 4 Dan placed an advertisement in the Anoka County Shopper. It cost S150 (cash) Oct 4 Dan started a petty cash fund with S50 for a fund balance Oct 5 We purchased (for cash) $45 worth of stamps (Miscellaneous Expense Oct 5 A three-month umbrella insurance policy was purchased for $720 (cash) Oct 7 Pola's Automotive Supply Company paid us $2,800 (cash) for setting up their Oct 9 We earned $3,200 from Esparsen's Fine Furniture Company for setting up their Oct 12 We paid a part-time employee $90 for running errands. There are no taxes to be Oct 14 Frisque's Food Service, Inc. paid us $1,700 for helping them with their taxes Oct 19 We paid our part-time employee $80 for running errands. There are no taxes to be Oct 23 We sent a check for $1,000 to Noe's Furniture Supply for the office equipment Oct 26 We earned $800 for consulting with Strodthoff s Clothing Outlet. They will pay Oct 26 We paid our part-time employee $50 for running errands. There are no taxes Oct 30 Esparsen's Fine Furniture Company paid us $900 on account for the work we did books books. They will pay us later withheld The actual bill was for $3,500. They will pay us the rest next month withheld. purchased on October Ist. us later withheld for them on October 9 Oct 30 Dan paid the stockholders $600 in dividends. Oct 31 Dan paid the electric bill which was $90 Oct 31 Dan replenished the petty cash fund. He had ised $12 for office supplies and $18 for miscellaneous expenses

Explanation / Answer

GENERAL LEDGER

CASH

DATE

DETAILS

$

DATE

DETAILS

$

STOCKS ISSUED

70000

RENT

2500

PROF FEES

2800

OFFICE SUPPLIES

400

FRISQUE - PROF FEES

1700

UTILITIES

95

ESPANIA – PROF FEES

900

ADVERTISEMENTS

150

PETTY CASH

50

POSTAGE

45

INSURANCE

720

WAGES

90

80

SUPP NOES

1000

WAGES

50

DIVIDENDS

600

ELEC

90

PETTY CASH REIMBURSED

30

BAL C/D

69500

75400

75400

PROFE FEES

CASH POLA

2800

ACC REC ESPAREN

3200

ACC REC STRODHOFF

800

ACC REC FRISQ

3500

10300

ACC REC

ESPARIN

3200

PROF FEES FRISQ

3500

CASH RECEIPT FRISQ

1700

PRO FEES STRODHOFF

800

CASH RECEIPT ESPARIN

900

BAL C/D

4900

7500

7500

WAGES

CASH

90

p/l

260

CASH

80

CASH

50

ACC PAY

40

260

ADVT

CASH

150

PL

150

PETTY CASH

CASH

50

MISC

18

CASH

30

OFFICE EXO

12

B/D

50

80

80

POSTAGE

CASH

45

PL

45

INSURANECE

CASH

720

PL

240

B/D

480

720

WAGES PAY

WAGES

40

MISC / OFFICE EXP

PETTY CASH

18

PL

30

PETTY CASH

12

30

UTILITIES

CASH

95

PL

185

ELEC

90

185

NOE SUPPLIER

CASH

1000

PURCHASE OF EQUIPMENT

9500

B/D

8500

OFFICE EQUIP

NOE SUPPLIER

9500

SHARE CAPITAL

CASH

70000

RENT

CASH

2500

DIVIDENDS

CASH

600

DEP ON OFFICE EQIP

ACC DEP

250

ACC DEP OFFICE EQUIP

DEP

250

OFFICE SUPPLIES

CASH

400

PL

150

C/D

250

POST CLOSING TRIAL BALANCE

CODE

$

$

PROFESSIONAL FEES

611

10300

RENT

835

2500

WAGES

845

260

INSURANCE

820

240

DEP EQUIP

815

250

MISC/ OFFCE EXP

825

30

UTILITIES

840

185

OFFICE SUPPLIES

830

150

POSTAGE

45

ADVT

810

150

DIVIDENDS

513

600

OFFICE EQUIPMENT

201

9500

ACC DEP

250

250

ACC REC

108

4900

PREPAYMENTS

118

730

PETTY CASH/ CASH

101/ 102

69550

EQUITY

511

70000

ACC PAY

301

8500

WAGES PAY

308

40

89090

89090

INCOME STATEMENT

$

$

PROFESSIONAL FEES

10300

LESS EXPENSES

RENT

2500

WAGES

260

INSURANCE

240

DEP EQUIP

250

MISC/ OFFCE EXP

30

UTILITIES

185

POSTAGE

45

ADVT

150

-3810

NET PROFIT

6490

LESS DIVIDENDS

-600

RETAINED EARNINGS

5890

EPS

6490/50

129.80

BALANCE SHEET AS AT 31 OCT ……

NON CURRENT ASSETS

$

$

OFFICE EQUIPMENT

COST      9500

ACC DEP -250

9250

CURRENT ASSETS

ACC REC

4900

PREPAYMENT

730

PETTY CASH/ CASH

69550

75180

TOTAL ASSETS

84430

EQUITY

70000

RETAIND EARNINGS

5890

75890

CURRENT LIABILITIES

ACC PAY

8500

WAGES PAY

40

8540

TOTAL LIABILITIES

84430

CASH

DATE

DETAILS

$

DATE

DETAILS

$

STOCKS ISSUED

70000

RENT

2500

PROF FEES

2800

OFFICE SUPPLIES

400

FRISQUE - PROF FEES

1700

UTILITIES

95

ESPANIA – PROF FEES

900

ADVERTISEMENTS

150

PETTY CASH

50

POSTAGE

45

INSURANCE

720

WAGES

90

80

SUPP NOES

1000

WAGES

50

DIVIDENDS

600

ELEC

90

PETTY CASH REIMBURSED

30

BAL C/D

69500

75400

75400