April 1 Stofford Invested $33000 cash and compuner equipment worth $25,000 in th

Question

April 1 Stofford Invested $33000 cash and compuner equipment worth $25,000 in the company 2 The compe 3 The company purchased $1300 of office supplies for cash 0 The company paid $2.300 cash for the premium on a 12-month insurance policy Coverage begins ny rented furnished office space by paying $2,100 cash for the first month's (Apritp)rent on April 11. 14 The company paid $1,500 cash for two weeks' salaries eaned by employees 24 The company collected $12.000 cash on commissions from airlines on tickets obtained for vill ex 28 The company paid $1.500 cash for two weeks' salaries earned by employees. 29 The company paid $300 cash for minor repairs to the company's computer 30 The company paid $1,500 cash for this month's telephone bil 30 Stafford withdrew $2,500 cash from the company for personal use. The company's chart of accounts follows 101 Cash 106 Accounts Recelvable 124 Office Supplies 128 Prepald Insurance 167 Computer Equipment 168 Accumulated Depreclation-Computer Equip. 209 Salarles Payable 301 J. Stafford, Capital 302 J. Stafford. Withdrawals 405 Commissions Earned 612 Depreclation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Use the following Information; a. Two-thirds of one month's insurance coverage has expired b. At the end of the month, $700 of office supplies are still available. C. This month's depreciation on the computer equipment is $300 d. Employees earned $470 of unpaid and unrecorded salarles as at month-end. e. The company earned $1,800 of commissions that are not yet billed at month-end

Explanation / Answer

Statement of Changes in Equity for the month ended 30th April 2015 Particulars Amount Amount J. Stafford Capital, April 1, 2015 $0 Add: Investment by owner - Cash $33,000 - Computer Equipment $25,000 $58,000 Add: Net Profit $5,402 (As computed below) Less: Withdrawl by owner -$2,500 J. Stafford Capital, April 30, 2015 $60,902 Statement of Financial Position as at 30th April 2015 Particulars Amount Amount Assets : Computer Equipment $25,000 less: Accumulated Depreciation - Computer Equipments -$300 $24,700 Office Supplies $700 Cash $32,000 Prepaid Insurance $2,172 ($2,300 - $128) Accounts receivable $1,800 Total $61,372 Liabilities : Salary Payable $470 J. Stafford Capital, April 30, 2015 $60,902 Total $61,372 Working Note - Cash book Date Receipts Amount Date Payments Amount 01-Apr Opening Balance $0 01-Apr To J Stafford Capital $33,000 02-Apr By Rent Expense $2,100 24-Apr To Commissions Earned $12,000 03-Apr By Office Supplies $1,300 10-Apr By Insurance Expense $2,300 14-Apr By Salaries Expense $1,500 28-Apr By Salaries Expense $1,500 29-Apr By Repairs Expense $300 30-Apr By Telephone Expense $1,500 30-Apr By J Stafford withdrawls $2,500 By Balance c/d $32,000 (Closing Balance) $45,000 $45,000 Income statement for the month of April 2015 Particulars Amount Amount Income Commission Earned - Billed $12,000 - Unbilled $1,800 $13,800 Total Income $13,800 Expenses: Salaries Expenses - Paid $3,000 - Un - Paid $470 $3,470 Office Supplies Expenses - Total purchases $1,300 Less: Stock available -$700 $600 Rent Expense $2,100 Repairs Expense $300 Insurance Expense $128 ($2,300 / 12 X 2/3) Telephone Expense $1,500 Depreciation Expense - computer Equipment $300 Total Expenses $8,398 Income Summary $5,402

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.