Assignment 1

CHAPTER 1
Course Code: ACT 301
Course Title: Financial and Managerial Accounting

Aysha Akmal(183-15-11959)
Section: B

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 CHAPTER 1(P1-1B) (a)
Vinnie’s Travel Agency
Apr Cash Accounts Supplies Equipment Accounts Capital Revenue Expense Drawings
il Receivable Payable

1 15000 15000

2 -600 -600

3 -3000 3000

4 700 -700

5 -800 800

6 3000 8000 11000

7 -500 -500

8 -700 -700

9 -2200 -2200

10 4000 -4000

14200 4000 800 3000 0 15000 11000 3500 -500

Asset = 22000 Liabilities Owners’ equity = 22000

= 0

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 CHAPTER 1(P1-1B) (b)
Income statement

Revenue--------------------- 11000
Expense--------------------- (3500)
Net income 7500

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 CHAPTER 1(P1-2B) (a)
Jenny Brown LAW Office
Jul Cash Accounts Supplies Equipment Note Accounts Capital Revenue Expense Drawings
y Receivable payable Payable

5000 1500 500 6000 4200 8800

1 1200 -1200

2 -2800 -2800

3 3000 5000 8000

4 -400 2000 1600

5 -2500 -2500
-900 -900
-400 -400
6 -700 -700

7 1500 1500 -700

8 220 -220

Asset = 16800 Liabilities + Owners’ equity = 4720 + 12080

= 16800

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 CHAPTER 1(P1-2B) (b)
Jenny Brown LAW Office
Income Statement
For the Month Ended August 31, 2010
Revenue--------------------- 8000
Expense--------------------- (4020)

Net income 3980

Jenny Brown LAW Office
Owner’s Equity Statement
For the Month Ended August 31, 2010

Capital...................................................... 8,800
Net income............................................... 3980
12780
Drawings ........................................... (750)
Capital, August 31 12080

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 Jenny Brown LAW Office
Balance Sheet
For the Month Ended August 31, 2010

Assets
Cash ....................................................................3000
Accounts receivable ..........................................5300
Supplies ..............................................................500
Office equipment.................................................8000
Total assets 16800

Liabilities and Owner’s Equity

Liabilities
Notes payable..............................................................1500
Accounts payable .......................................................3220
Total liabilities 4720

Owner’s equity

Capital..................................................12080
Total liabilities................................... 4720
Total liabilities and owner’s equity 16800

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 CHAPTER 1(P1-3B) (a)
DIVINE COSMETICS CO.
Income statement
For the Month Ended June 30, 2010

Expense
Advertising Expense…………………... 400
Supplies Expense……………………... 1,600
Gas and Oil Expense…………………… 200
Utilities Expense …………………………150
Total expenses 2350
Service Revenue……………………. 7,000
Total expenses……………………………. (2350)

Net income 4650

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 DIVINE COSMETICS CO.
Owner’s Equity Statement
For the Month Ended June 30, 2010

Investments.......................................................15200
Net income.........................................................4650
19850
Drawings ............................................................(1300)
Capital, June 30 18550

DIVINE COSMETICS CO.

Balance Sheet
For the Month Ended June 30, 2010
Assets
Cash.......................................................................................13750
Accounts receivable.............................................................3000
Craftsupplies......................................................................... 2,000
Equipment..............................................................................10000
Total assets 28750

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 Liabilities and Owner’s Equity
Liabilities
Notes payable...............................................................................9000
Accounts payable ....................................................................... 1,200
Total liabilities 10200

Owner’s equity
Capital, June 30 .......................................................... 18550
Total liabilities ............................................................ 10200
Total liabilities and owner’s equity 28750

CHAPTER 1(P1-3B) (b)

DIVINE COSMETICS CO.
Income statement
For the Month Ended June 30, 2010
Expenses
Supplies expense................................................1,600
Gas and oil expense (200 + 150) .........................350
Advertising expense .......................................... 400
Utilities expense.................................................. 150
Total expense 2500
Revenues
Service revenue (7000+ 900) .................... 7900
Total expense ………………………………2500
Net income 5400

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 DIVINE COSMETICS CO.
Owner’s Equity Statement
For the Month Ended June 30, 2010
Initial Capital............................…………...0
Investments ......................................................15200
Net income ........................................................5400
20600
Drawings..............................................................1300
Capital, June 30 19300

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 CHAPTER 1(P1-4B) (a)
Rodriguez Consulting
Ma Cash Accounts Supplies Equipment Note Accounts Capital Revenue Expense Drawings
y Receivable payable Payable

1 7000 7000

2 -900 -900

3 600 600

5 -125 -125

9 4000 4000

12 -1000 -1000

15 6400 6400

17 -2500 -2500

20 -600 -600

23 4000 -4000

26 5000 5000

29 3100 3100

30 -175 -175

Asset = 20800 Liabilities + Owners’ equity = 8100 + 12700

= 20800

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 CHAPTER 1(P1-4B) (b)
Rodriguez Consulting
Income Statement
May 1, 2010

Revenue--------------------- 10400
Expense--------------------- (3700)

Net income 6700

Rodriguez Consulting
balance sheet
May 31, 2010
Assets
Cash .............................................................................................14700
Accounts receivable ....................................................................2400
Supplies ........................................................................................600
Office equipment..........................................................................3100
Total assets 20800
Liabilities and Owner’s Equity
Liabilities
Notes payable............................................................................... 3100
Accounts payable ....................................................................... 5000
Total liabilities 8100

Owner’s equity
Investments.......................................................7000
Net income.........................................................6700
13700
Drawings ............................................................ (1000)
Capital, May 31 12700

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Total liabilities……………………………………… 8100
Capital, May 31……………………………………….12700
Total liabilities and owner’s equity 20800

CHAPTER 1(P1-5B) (a)

Donatello Company
(a) Assets =Liabilities + Beginning Owner’s equity
Assets – Liabilities=Beginning Owner’s equity
80,000 – 48,000 =32000

(b) Assets =Liabilities + Owner’s equity

=60,000 + 40,000
= 100000
(c)
Ending Owner’s equity = Beginning Owner’s equity + Additional investment+ Total
revenues - Total expenses- Drawings

40,000 = 32000+ C+ 350,000 - 333,000 - 15,000

40,000 =34000 + C
C = 6000
Raphael Company

(d) Assets =Liabilities + Owner’s equity

Liabilities = 90,000 - 40,000 = 50000

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(e) Assets =Liabilities + Owner’s equity
Owner’s equity = 112,000- 72,000 = 40000

(f)
Ending Owner’s equity = Beginning Owner’s equity + Additional investment+ Total
revenues - Total expenses- Drawings

40,000 = 40000+ 8000+ 410,000- 385,000 - F

40,000 =73000 - F
F = 33000

Michelangelo Company

(g) Assets =Liabilities + Owner’s equity

=80,000 + 49,000
= 129000
(h) Assets =Liabilities + Owner’s equity
Liabilities = 180,000- 70,000= 110000
(i)
Ending Owner’s equity = Beginning Owner’s equity + Additional investment+ Total
revenues - Total expenses- Drawings

70,000 = 49000+ 10000+ I- 350,000- 12000

70,000 = I - 303000
I = 373000

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 Leonardo Company
(j) Assets =Liabilities + Owner’s equity
Liabilities = 150,000- 90,000= 60000

(k) Assets =Liabilities + Owner’s equity

=100,000 + 145,000
= 245000
(l)
Ending Owner’s equity = Beginning Owner’s equity + Additional investment+ Total
revenues - Total expenses- Drawings

145,000 = 90000+ 15,000+ 500,000- L - 10,000

145,000 = 595000 - L
L = 450000

CHAPTER 1(P1-5B) (b)

Donatello Company
Revenue--------------------- 350,000
Expense--------------------- (333,000)

Net income 17000

Owner’s equity
Owner’s equity (January 1, 2010) ……………………32000
Investments.......................................................6000
Net income......................................................... 17000
65000
Drawings ............................................................ (15000)
December 31, 2010 40000

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The End

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