a. I need help caluclating a balance sheet, income sheet as well as a accounting

Question

a.

I need help caluclating a balance sheet, income sheet as well as a accounting equation

Articles of incorporation are filed with the state, and 60,000 shares of capital stock are issued. Cash of $120,000 is received from the new owners for the shares.

A total of $1,000 in dividends is paid to the owners.

a.

I need help caluclating a balance sheet, income sheet as well as a accounting equation

Articles of incorporation are filed with the state, and 60,000 shares of capital stock are issued. Cash of $120,000 is received from the new owners for the shares.

A five-year promissory note is signed at the local bank. The cash received from the loan is $360,000. c. An existing car wash is purchased for $450,000 in cash. The values assigned to the land, building, and equipment are $90,000, $225,000, and $135,000, respectively. d. Cleaning supplies are purchased on account for $2,600 from a distributor. None of the supplies are used in the first month. e. During the first month, $1,400 is paid to the distributor for the cleaning supplies. The remaining $1,200 will be paid next month. f. Gross receipts from car washes during the first month of operations amount to $7,000. g. Wages and salaries paid in the first month amount to $2,100. h. The utility bill of $700 for the month is paid. i.

A total of $1,000 in dividends is paid to the owners.

Explanation / Answer

Ans S.no. = LIABILITIES + EQUITY Income Statement Stock holder's Equity Cash Cleaning Supplies Fixed Assets Accounts Payable Long Term Note Payable Common Stock Retained Earnings Revenue- Expenses= Net Income a) $                                       1,20,000.00 $      1,20,000.00 b) $                                       3,60,000.00 $                      3,60,000.00 c ) $                                     (4,50,000.00) $   4,50,000.00 d) $                       2,600.00 $                2,600.00 e) $                                           (1,400.00) $              (1,400.00) f) $                                             7,000.00 $    7,000.00 $       7,000.00 g) $                                           (2,100.00) $       2,100.00 $     (2,100.00) h) $                                              (700.00) $          700.00 $        (700.00) i) $                                           (1,000.00) $              (1,000.00) $                                           31,800.00 $                       2,600.00 $   4,50,000.00 $                1,200.00 $      1,20,000.00 $                 3,200.00 $    7,000.00 $       2,800.00 $       4,200.00 Income Statement Gross Receipts $                       7,000.00 Less: Expenses Wages & Salaries $                       2,100.00 Utility Expenses $                          700.00 Net Income $                       4,200.00 Less: Dividend $                     -1,000.00 Retained Earnings $                       3,200.00 Balance Sheet Current Assets Cash $                    31,800.00 Cleaning Supplies $                       2,600.00 Fixed Assets Land $                    90,000.00 Building $                 2,25,000.00 Equipment $                 1,35,000.00 Total Assets $                 4,84,400.00 Current Liabilities Accounts Payable $                       1,200.00 Long Term Note Payable $                 3,60,000.00 Common Stock $                 1,20,000.00 Retained Earnings $                       3,200.00 Total Liabilities & Equity $                 4,84,400.00

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