Mini-case Acme Corp. was formed on July 1 of the current year. The following occurred during the year: t Common stock is issued for $50,000. t $200/month.
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Presentation on theme: "Mini-case Acme Corp. was formed on July 1 of the current year. The following occurred during the year: t Common stock is issued for $50,000. t $200/month."— Presentation transcript:
Mini-case Acme Corp. was formed on July 1 of the current year. The following occurred during the year: t Common stock is issued for $50,000. t $200/month rent is paid for 1 year in advance on July 1. t Wages are paid in cash during the period totaling $8,000. Accrued wages at year-end are $1,200. t Fees earned during the period are billed to clients totaling $35,000. t Supplies are purchased on account for $2,000. Assume that all of the supplies were used up at the end of year. t $22,000 is collected from clients previously billed. t Suppliers are paid $1,800 on account. t $500 in dividends are declared and paid. t $250 in utilities are paid during the year. Required: Journalize these transactions, post them to T-accounts, prepare the adjusted trial balance, prepare all four financial statements, prepare closing entries, and prepare the post-closing trial balance.
Amer Company Income Statement For the Year Ended December 31 Revenue Sales$35000 Expenses Rent Expense $ 1200 Rent Expense $ 1200 Utility Expense 250 Utility Expense 250 Salary Expense 9200 Salary Expense 9200 Supplies expenses 2000 12650 Supplies expenses 2000 12650 Net income $ 22350
t Amer Coporation For the Year Ended December 31 Beginning contributed capital -0- Contributions during the year 50000 Ending contributed capital 50000 Beginning retained earning -0- Net Income for the year 22350 Dividends (500) Ending Retained earning $21,850 Total shareholder’s equity $71850
Tom’s Wear Balance Sheet As of 2/28/01 Assets Liabilities + Shareholder’s Equity Assets Liabilities + Shareholder’s Equity Cash$59,050 Accounts payable 200 Prepaid Rent 1200 Salaries Payables 1200 A/R 13,000 Common Stock 50,000 Retained earnings 21850 Retained earnings 21850 Total assets$ 73,250 Total liabilities + Equity $ 73,250
Amer. Statement of Cash Flows For the Year ended December 31 Cash from operating activities Cash from customers$ 22000 Cash paid for rent (2400) Cash paid for Salaries (8000) Cash paid for supplies (1800) Cash paid for supplies (1800) Cash paid for Utility (250) Total cash from operations$9550 Cash from investing activities -0- Cash from financing activities Cash from Owner’s Contribution 50000 Cash from Owner’s Contribution 50000 Dividends (500) Total Cash from Financing49500 Net Increase in Cash $ 59050 Net Increase in Cash $ 59050 Cash, Beginning Balance 0 Cash, ending Balance59050