1 Colfax dry cleaners Prob. 1–5A 1. Assets
Cash
Accounts + Receivable
34,200 +
40,000
Prob Prob.. 1–5 1–5A A 2.
=
+ Supplies
+ Land
+
+
5,000
=
Liabilities
50,000 =
16,400
+ Maria Acosta, Capital
129,200
=
16,400
+ Maria Acosta, Capital
112,800
=
Maria Acosta, Capital
Cont Contin inue ued d
Cash 34,200 + 35,000 69,200 – 30,000 39,200 – 4,500 34,700
–
Owner’s Equity
Accounts Payable + Maria Acosta, Capital
Assets
Bal. a. Bal. b. Bal. c. Bal. d. Bal. e.
+
34,700 9,000
Accounts + Receivable
+
= Liabilities +
Supplies
+
Land
=
Owner’s Equity
Maria Maria Accounts Acosta, Acosta, Payable + Capital – Drawing
40,000
5,000
50,000
16,400
40,000
5,000
16,400
40,000
5,000
50,000 + 30,000 80,000
112,800 + 35,000 147,800
16,400
147,800
40,000 + 18,250 58,250
5,000
80,000
16,400
147,800
5,000
80,000
16,400 9,000
147,800
–
2 Bal. f. Bal. g. Bal. h. Bal. i. Bal. j. Bal. k. Bal. l. Bal.
25,700 25,700 + 31,750 57,450 + 27,800 85,250 85,250 – 12,500 72,750 72,750 – 10,000 62,750
58,250
5,000 + 2,800 7,800
80,000
147,800
80,000
7,400 2,800 10,200
58,250 – 27,800 30,450
7,800
80,000
10,200
147,800
7,800
80,000
147,800
30,450
7,800
80,000
10,200 + 14,800 25,000
30,450
80,000
25,000
147,800
30,450
7,800 – 4,250 3,550
80,000
25,000
147,800
30,450
3,550
80,000
25,000
– 10,000 147,800 – 10,000
58,250
+
147,800
147,800
3 Prob. 1–5A Continued Owner’s Equity (Continued) Dry Dry Cleaning Cleaning Wages + Revenue – Exp. – Exp. – Bal. a. Bal. b. Bal. c. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. Bal. k. Bal. l. Bal.
Rent Exp.
– –
4,500 4,500
+ 18,250 18,250
–
4,500
18,250
–
4,500
18,250 + 31,750 50,000
–
4,500
–
4,500
50,000
–
4,500
– 50,000 –
14,800 14,800
50,000 –
14,800 –
– 4,500 – 8,200 8,200 – 4,500
50,000 –
14,800 –
8,200 –
4,500
50,000 –
14,800 –
8,200 –
4,500
j.
Supplies Exp. –
–
Truck Exp.
Utilities Exp. –
–
Misc. Exp.
–
– 1,875
1,875 – – 1,575
1,575 – – 850
– –
4,250 4,250 –
1,875
–
1,575
–
850
–
4,250
1,875
–
1,575
–
850
–
850
4 Prob. 1–5A
Continued
3. COLFAX DRY CLEANERS Income Statement For the Month Ended November 30, 2010 Dry cleaning revenue.................................................................. .. .. .. .. .. Expenses: Dry cleaning expense................................................................... Wages expense............................................................................. Rent expense................................................................................ Supplies expense......................................................................... Truck expense............................................................................... Utilities expense........................................................................... Miscellaneous expense................................................................ Total expenses.................................................. .. .. .. .. .. .. .. .. .. .. .. . Net income.............................................................................................
$50,000 $ 14,800 8,200 4,500 4,250 1,875 1,575 850 36,050 $ 13,950
COLFAX DRY CLEANERS Statement of Owner’s Equity For the Month Ended November 30, 2010 Maria Acosta, capital, November 1, 2010...................... Additional investment by Maria Acosta........................ Net income for November.............................................. Less withdrawals................................................ .. .. .. .. ... . Increase in owner’s equity............................................. Maria Acosta, capital, November 30, 2010....................
$ 112,800 $35,000 13,950
$ 48,950 10,000 38,950 $151,750
5 COLFAX DRY CLEANERS Balance Sheet November 30, 2010 Assets Cash....................... .. .. .. .. ... .. .. .. .. Accounts receivable................ Supplies.................................... Land.......................................... Total a ssets..............................
$
62,750 30,450 3,550 80,000 $176,750
Liabilities Accounts payable........... .. .. .. .. Owner’s Equity Maria Acosta, capital.............. Total liabilities and owner’s e quity....................
$
25,000
151,750 $176,750
4. (Optional) COLFAX DRY CLEANERS Statement of Cash Flows For the Month Ended November 30, 2010
Cash flows from operating activities: Cash received from customers................................................... Deduct cash payments for expenses and payments to creditors....................................................... Net cash flow from operating activities......................................
$ 59,550* 26,000** $ 33,550
Cash flows from investing activities: Purchase of land..................................................................... .. .. .. Cash flows from financing activities: Cash received as owner’s investment........................................ Deduct cash withdrawal by owner.............................................. Net cash flow from financing activities...................................... Increase in cash................................................................ .. .. .. .. .. .. .. .. .. .. Cash balance, November 1, 2010..................................................... .. .. Cash balance, November 30, 2010................................................... .. .. *$31,750 + $27,800 **$4,500 + $9,000 + $12,500
(30,000) $ 35,000 10,000 25,000 $ 28,550 34,200 $ 62,750
6 Rhea Quade Prob. 1–1B 1. Owner’s
Cash a.
+
+
Assets
= Liabilities +
Accts.
Accts.
Rec.
+
c.
+
d. Bal. e. Bal.
2.
Rent –
Exp.
–
Sal.
Supp.
Exp. –
Exp.
30,000
1,750
1,750
30,000
1,750
1,750 –
1,750
28,100
Misc. –
Exp.
30,000
3,600
– 1,300
3,600
– 1,300
500 1,250
30,000
+ 4,800
4,800
1,750
1,250
30,000
8,400
– 1,300
4,800
1,750
1,250
30,000
8,400
– 1,300
4,800
1,750
1,250
30,000
8,400
– 1,300
– 500
– 200
– 500
– 200
– 500
– 200
– 1, 000 –
30,100
Exp.
– 1,300
1, 000 30,100
Auto –
3,600
700
j. Bal.
1,750
500
31,100 –
Earned
1, 300
31,800 –
Fees +
+ 3,600
i. Bal.
Drawing
+ 4,800
Bal. Bal.
1,750
31,800
Bal.
h.
–
3, 600
f. g.
Capital + 30,000
32,300 –
+
Rhea Quade,
+ 1,750
33,600 –
Payable
Rhea Quade,
+ 1,750 30,000
Bal.
=
30,000
b. Bal.
Supplies
Equity
4,800 –
950 800
– 950 1,250
30,000
8,400
2,000
4,800
– 1,000
– 1,300
– 1,000
– 950
– 500
– 200
– 1,300
– 1,000
– 950
– 500
– 200
– 2,000 800
1,250
30,000
– 2,000
8,400
Owner’s equity is the right of owners to the assets of the business. These rights are increased by owner’s investments and revenues and decreased by owner’s withdrawals and expenses.
7
Ashley Rhymer
Prob. 1–3B 1. FAIR PLAY FINANCIAL SERVICES Income Statement For the Month Ended January 31, 2010 Fees earned........................................................................................... Expenses: Salaries expense........................................................................... Rent expense................................................................................ Auto expense................................................................................ Supplies expense......................................................................... Miscellaneous expense................................................................ Total expenses.................................................. .. .. .. .. .. .. .. .. .. .. .. . Net income.............................................................................................
$39,500 $ 16,000 7,500 4,500 1,500 1,200 30,700 $ 8,800
2. FAIR PLAY FINANCIAL SERVICES Statement of Owner’s Equity For the Month Ended January 31, 2010 Ashley Rhymer, January 1, 2010......................................................... Investment on January 1, 2010............................................................ Net income for January........................................................................ Less withdrawals.................................................................................. Increase in owner’s equity............................................ ... .. .. .. .. .. .. .. .. .. .. Ashley Rhymer, capital, January 31, 2010..........................................
$
0
$15,000 8,800 $23,800 5,000 18,800 $18,800
8
3. FAIR PLAY FINANCIAL SERVICES Balance Sheet January 31, 2010 Assets Cash.......................................... Accounts receivable................ Supplies....................................
Total assets..............................
$
8,200 11,500 680
$ 20,380
Liabilities Accounts payable................... Owner’s Equity Ashley Rhymer, capital.......... Total liabilities and owner’s equity....................
$
1,580
18,800 $ 20,380
4. (Optional) FAIR PLAY FINANCIAL SERVICES Statement of Cash Flows For the Month Ended January 31, 2010 Cash flows from operating activities: Cash received from customers................................................... Deduct cash payments for expenses and payments to creditors....................................................... Net cash flow used for operating activities ...............................
$ 28,000 29,800* $ (1,800)
Cash flows from investing activities................................................... Cash flows from financing activities: Cash received as owner’s investment........................................ Deduct cash withdrawal by owner.............................................. Net cash flow from financing activities...................................... Net cash flow and January 31, 2010, cash balance............................ *$600 + $7,500 + $5,700 + $16,000
0 $ 15,000 5,000 10,000 $ 8 ,200
9
Swan Dry Cleaners Prob. 1–5B 1. Assets
Cash
Accounts + Receivable
17,000 +
31,000
Prob. 1–5B
= Liabilities
+
Accounts Payable
Owner’s Equity
+ Supplies
+ Land
=
+
+ 36,000
=
10,400
+ Peyton Keyes, Capital
87,200
=
10,400
+ Peyton Keyes, Capital
76,800
=
3,200
+ Peyton Keyes, Capital
Peyton Keyes, Capital
Continued
2. Assets
Cash Bal. a. Bal. b. Bal. c. Bal.
17,000 + 25,000 42,000 – 24,000 18,000 + 19,500 37,500
Accounts + Receivable
+
= Liabilities +
Supplies
+
Land
=
Owner’s Equity
Peyton Peyton Accounts Keyes, Keyes, Payable + Capital – Drawing
31,000
3,200
36,000
10,400
31,000
3,200
10,400
31,000
3,200
36,000 + 24,000 60,000
76,800 + 25,000 101,800
10,400
101,800
31,000
3,200
60,000
10,400
101,800
10 d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. j. Bal. k. Bal. l. Bal.
–
–
3,000 34,500
31,000
34,500 5,100 29,400
29,400 8,050 21,350 + 26,750 48,100
48,100 – 18,000 30,100
Prob. 1–5B
60,000
31,000 + 24,750 55,750
4,750
60,000
4,750
60,000
55,750
4,750
55,750 – 26,750 29,000
31,000
29,400
–
3,200 + 1,550 4,750
60,000
10,400 + 1,550 11,950 – 5,100 6,850
101,800 101,800 101,800 101,800
60,000
6,850 + 8,200 15,050
4,750
60,000
15,050
101,800
60,000
15,050
101,800
29,000
4,750 – 2,950 1,800
60,000
15,050
101,800
29,000
1,800
60,000
15,050
– 18,000 101,800 – 18,000
101,800
Continued
Owner’s Equity (Continued) Dry Dry Cleaning Cleaning Wages + Revenue – Exp. – Exp. – Bal. a. Bal. b.
Rent Exp.
–
Supplies Exp. –
Truck Exp.
–
Utilities Exp. –
Misc. Exp.
11 Bal. c. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. j. Bal. k. Bal. l. Bal.
+ 19,500 19,500 19,500
– –
3,000 3,000
19,500
–
3,000
19,500 + 24,750 44,250
–
3,000
–
3,000 3,000
3,000
44,250
– –
8,200 8,200
44,250
–
– – 5,100 8,200 – 5,100 –
44,250
–
8,200 – 5,100 –
3,000
44,250
–
8,200 – 5,100 –
3,000
– –
44,250
–
8,200 – 5,100 –
3,000
–
– –
1,200 1,200
– –
800 800
– –
950 950
– 2,950 2,950 –
1,200
–
800
–
950
1,200
–
800
–
950
2,950 –
1,200
–
800
–
950
12 Prob. 1–5B Continued 3. SWAN DRY CLEANERS Income Statement For the Month Ended July 31, 2010 Dry cleaning revenue.................................................................. .. .. .. .. .. Expenses: Dry cleaning expense................................................................... Wages expense............................................................................. Rent expense................................................................................ Supplies expense......................................................................... Truck expense............................................................................... Utilities expense........................................................................... Miscellaneous expense................................................................ Total expenses.................................................. .. .. .. .. .. .. .. .. .. .. .. . Net income.............................................................................................
$ 44,250 $8,200 5,100 3,000 2,950 1,200 800 950 22,200 $ 22,050
SWAN DRY CLEANERS Statement of Owner’s Equity For the Month Ended July 31, 2010 Peyton Keyes, capital, July 1, 2010............................... Additional investment by Peyton Keyes....................... Net income for July........................................................ Less withdrawals............................................................ Increase in owner’s equity............................................. Peyton Keyes, capital, July 31, 2010.............................
$ $ 25,000 22,050
76,800
$ 47,050 18,000 29,050 $ 105,850
SWAN DRY CLEANERS
13 Balance Sheet July 31, 2010 Assets Cash.......................................... Accounts receivable................ Supplies.................................... Land..........................................
$ 30,100 29,000 1,800 60,000
Total assets........ .. .. .. .. .. .. .. .. ... .. .
$120,900
Liabilities Accounts payable...................
$
Owner’s Equity Peyton Keyes, capital............. Total liabilities and owner’s equity....................
15,050
105,850 $120,900
4. (Optional) SWAN DRY CLEANERS Statement of Cash Flows For the Month Ended July 31, 2010 Cash flows from operating activities: Cash received from customers................................................... Deduct cash payments for expenses and payments to creditors....................................................... Net cash flow from operating activities......................................
$46,250* 16,150** $
Cash flows from investing activities: Purchase of land..................................................................... .. .. .. Cash flows from financing activities: Cash received as owner’s investment........................................ Deduct cash withdrawal by owner.............................................. Net cash flow from financing activities...................................... Increase in cash................................................................ .. .. .. .. .. .. .. .. .. .. Cash balance, July 1, 2010....................................................... .. .. .. .. .. .. Cash balance, July 31, 2010................................................................. *$19,500 + $26,750 **$3,000 + $5,100 + $8,050
30,100 (24,000)
$25,000 18,000 $ $
7,000 13,100 17,000 30,100