Accounting notes

On January 1, 2013, Dr. Marcie Cousins established Health-Wise Medical, a medical practice organized as a proprietorship. The following conversation occurred the following August between Dr. Cousins and a former medical school classmate, Dr. Avi Abu, at an American Medical Association convention in Seattle. Dr. Abu: Marcie, good to see you again. Why didn’t you call when you were in Miami? We could have had dinner together. Dr. Cousins: Actually, I never made it to Miami this year. My husband ...

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2014, is shown below. Cash receipts: Cash received from customers $637,500 Cash received from additional investment of owner 62,500 Cash payments: Cash paid for operating expenses 475,000 Cash paid for land 90,000 Cash paid to owner for personal use 17,500 The cash balance as of June 1, 2013, was $58,000. Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2014.

PR 1-6B Missing amounts from financial statements OBJ. 5 The financial statements at the end of Atlas Realty’s first month of operations are shown below. Atlas Realty Income Statement For the Month Ended May 31, 2014 Fees earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000 Expenses: Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (a) Rent expense . . . ....

a. A vacant lot acquired for $180,000 is sold for $440,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity? b. Assume that the seller owes $69,000 on a loan for the land. After receiving the $440,000 cash in (a), the seller pays the $69,000 owed. What is the effect of the payment on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity? c. Is it true that a transaction always af...

PE 1-3A Transactions OBJ. 4 Arrowhead Delivery Service is owned and operated by Gates Deeter. The following selected transactions were completed by Arrowhead Delivery Service during August: 1. Received cash from owner as additional investment, $25,000. 2. Paid creditors on account, $3,750. 3. Billed customers for delivery services on account, $22,400. 4. Received cash from customers on account, $11,300. 5. Paid cash to owner for personal use, $6,000. Indicate the effect of each transaction on th...

Using the following data for Sunset Travel Service as well as the statement of owner’s equity shown in Practice Exercise 1-5A, prepare a balance sheet as of April 30, 2014. Accounts payable $ 61,000 Accounts receivable 124,000 Cash 274,000 Land 450,000 Supplies 13,000 PE 1-6B Balance sheet OBJ. 5 Using the following data for Sentinel Travel Service as well as the statement of owner’s equity shown in Practice Exercise 1-5B, prepare a balance sheet as of August 31, 2014. Accounts payable $ 44,...

From the following list of selected items taken from the records of Hoosier Appliance Service as of a specific date, identify those that would appear on the balance sheet: 1. Accounts Receivable 2. Cash 3. Fees Earned 4. Land 5. Ming Hu, Capital 6. Supplies 7. Supplies Expense 8. Utilities Expense 9. Wages Expense 10. Wages Payable

PE 1-8A Ratio of liabilities to owner’s equity OBJ. 6 The following data were taken from Mesa Company’s balance sheet: Dec. 31, 2014 Dec. 31, 2013 Total liabilities $547,800 $518,000 Total owner’s equity 415,000 370,000 a. Compute the ratio of liabilities to owner’s equity. b. Has the creditor’s risk increased or decreased from December 31, 2013, to December 31, 2014? PE 1-8B Ratio of liabilities to owner’s equity OBJ. 6 The following data were taken from Alvarado Company’s balance...

PR 1-3B Financial statements OBJ. 5 Jose Loder established Bronco Consulting on August 1, 2014. The effect of each transaction and the balances after each transaction for August are shown below. Assets 5Liabilities 1 Owner’s Equity Cash Accounts Receivable Supplies = Accounts Payable Jose Loder, Capital − Jose Loder, Drawing Fees Earned − Salaries Expense − Rent Expense − Auto Expense − Supplies Expense − Misc. Expense a. 75,000 75,000 b. 9,000 9,000 Bal. 75,000 9,000 9...

PR 1-4B Transactions; financial statements OBJ. 4, 5 On April 1, 2014, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: b. Paid rent on office and equipment for the month, $3,600. c. Paid automobile expenses (including rental charge) for month, $1,350, and miscellaneous expenses, $600. d. Purchased office supplies on account, $1,200. e. Earned sales commissions, receiving cash, $19,800. f. Paid creditor on account, $750. g. Paid office ...