Preparing financial statements and evaluating business performance

P1-44B

Preparing financial statements and evaluating business performance.

Accent Photography works weddings and prom-type parties. The balance of capital was $20,000 at December 31, 2010. At December 31, 2011, the business’ accounting records show these balances:

Insurance expense $8,000

Cash $31,000

Accounts payable $6,000

Advertising Expense $1,000

Service revenue $81,000

Owner withdrawal $15,000

Accounts receivable $10,000

Note payable $12,000

Owner equity?

Salary expense $27,000

Equipment $60,000

Owner Investment $33,000

Prepare the following statements for Accent Photography for the year end December 31, 2011:

Income statement

Statement of owner’s equity

Balance sheet

P2-46B

Analyzing and journalizing transactions, posting, and preparing trial balance.

Warren Smith practices medicine under the business title Warren Smith, M.D. During April, the medical practice completed the following transactions:

Apr 1 Smith deposited $78,000 cash in the business bank account. The business gave capital to Smith.

Apr 5 Paid monthly rent on medical equipment, $780.

Apr 9 Paid $18,000 cash to purchase land for an office site.

Apr 10 Purchased supplies on account, $1,200.

Apr 19 Borrowed $20,000 from the bank for business use. Smith signed a note to the bank in the name of the business.

Apr 22 Paid $800 on the account.

Apr 30 Revenue earned during the month included $5,900 cash and $4,900 on account.

Apr 30 Paid employees’ salaries $2,000, office rent$1,800, and utilities $420. Make a single compound entry.

Apr 30 Owner withdrew $9,000.

The business uses the following accounts:

Cash; Accounts receivable; supplies; Land; Accounts payable; Notes payable; Warren Smith, capital; Warren Smith, withdrawals; Service revenue; Salary expense; rent expense; Utility expense.

1. Journalize each transaction, as shown for April. Explanations are not required.

April 1 Cash $78,000

Warren Smith, Capital $78,000

1. Post the transactions to the T-accounts, using transaction dates as posting reference in the ledger accounts. Label the balance of each account balance as shown in chapter

2. Prepare the trial balance of Warren Smith, M.D., at April 30, 2010.

Assignment 4: Excel Problems

At the end of each module, you will apply the module’s concepts by completing a comprehensive assignment from the textbook.

Complete these problems from your text book: (P1-44B page 47& P2-46B page 111) related to transaction analysis, journal entries for typical business transactions, adjusting entries and preparation of the trial balance and adjusted trial balance.

Present your analysis of the assigned problems in Excel format. Enter non-numerical responses in the same worksheet using textboxes.

By Wednesday, June 24, 2015 deliver your assignment to the M1: Assignment 4 Dropbox.

Create the file with the following name: LastnameFirstInitial_M1A4.Excel.xls. .