|
Below
are the restated amounts of net income and retained earnings for
Volunteers Inc. and Raiders Inc. for the period 2006–2015. Volunteers
began operations in 2007.
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| Required: |
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Calculate the balance of retained earnings each year for each company. Neither company paid dividends during this time. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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The December 31, 2015, unadjusted trial balance for Demon Deacons Corporation is presented below.
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| Accounts | Debit | Credit | ||||
| Cash | $ | 8,000 | ||||
| Accounts Receivable | 13,000 | |||||
| Prepaid Rent | 4,800 | |||||
| Supplies | 2,000 | |||||
| Unearned Revenue | $ | 1,000 | ||||
| Common Stock | 12,000 | |||||
| Retained Earnings | 4,000 | |||||
| Service Revenue | 35,800 | |||||
| Salaries Expense | 25,000 | |||||
| | | | | | | |
| $ | 52,800 | $ | 52,800 | |||
| | | | | | | |
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| At year-end, the following additional information is available: |
| a. |
The balance of Prepaid Rent, $4,800, represents payment on October 31, 2015, for rent from November 1, 2015, to April 30, 2016.
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| b. |
The balance of Unearned Revenue, $1,000, represents payment in advance from a customer. By the end of the year, $250 of the services have been provided.
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| c. |
An additional $500 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2016.
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| d. |
The balance of Supplies, $2,000, represents the amount of office supplies on hand at the beginning of the year of $700 plus an additional $1,300 purchased throughout 2015. By the end of 2015, only $600 of supplies remains.
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| Bearcat Construction begins operations in March and has the following transactions. |
| March 1 | Issue common stock for $18,000. |
| March 5 | Obtain $8,400 loan from the bank by signing a note. |
| March 10 | Purchase construction equipment for $22,000 cash. |
| March 15 | Purchase advertising for the current month for $1,100 cash. |
| March 22 | Provide construction services for $17,400 on account. |
| March 27 | Receive $12,400 cash on account from March 22 services. |
| March 28 | Pay salaries for the current month of $5,400. |
| Required: |
|
Record
each transaction. Bearcat uses the following accounts: Cash, Accounts
Receivable, Equipment, Notes Payable, Common Stock, Service Revenue,
Advertising Expense, and Salaries Expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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| Sun Devil Hair Design has the following transactions during the month of February. |
| February 2 | Pay $630 for radio advertising for February. |
| February 7 | Purchase beauty supplies of $1,230 on account. |
| February 14 | Provide beauty services of $2,550 to customers and receive cash. |
| February 15 | Pay employee salaries for the current month of $830. |
| February 25 | Provide beauty services of $930 to customers on account. |
| February 28 | Pay utility bill for the current month of $230. |
| Required: |
|
Record each transaction. Sun Devil uses the following accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Service Revenue, Advertising Expense, Salaries Expense, and Utilities Expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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| Terapin Company engages in the following external transactions for November. |
| 1. | Purchase equipment in exchange for cash of $21,300. |
| 2. | Provide services to customers and receive cash of $6,100. |
| 3. | Pay the current month's rent of $900. |
| 4. | Purchase office supplies on account for $1,500. |
| 5. | Pay employees' salaries of $1,300 for the current month. |
| Required: |
|
Record the transactions. Terapin uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
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| Below is a list of common accounts. |
| Required: |
Select whether the normal balance of each account is a debit or a credit. |
| Below are the external transactions for Shockers Incorporated. |
| 1. | Issue common stock in exchange for cash. |
| 2. | Purchase equipment by signing a note payable. |
| 3. | Provide services to customers on account. |
| 4. | Pay rent for the current month. |
| 5. | Pay insurance for the current month. |
| 6. | Collect cash from customers on account. |
| Required: | |
|
Analyze each transaction. Under each category in the accounting equation, select whether the transaction increases, decreases, or has no effect. The first item is provided as an example.
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