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    P1 4a

    Uploaded by

    Usman Alam
    problem set and solution for accounting

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    P1 4a

    Uploaded by

    Usman Alam
    4 views3 pages
    problem set and solution for accounting

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    P1-4A

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    problem set and solution for accounting

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4 views3 pages

    P1 4a

    Uploaded by

    Usman Alam
    problem set and solution for accounting

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    (a) STINER DELIVERIES LTD.

    Assets = Liabilities + Equity


    Accounts Notes Accounts Share Retained Earnings
    Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital + Revenues – Expenses – Dividends

    June 1 £10,000 +£10,000


    June 2 + –2,000 +£14,000 +£12,000
    8,000 + 14,000 = 12,000 + 10,000
    June 3 + –500 –£ 500 (a)
    + 7,500 + +14,000 = 12,000 + 10,000 –500
    June 5 +£4,800 + £4,800 (b)

    PROBLEM 1-4A
    + 7,500 + 4,800 + +0014,000 = 12,000 + 10,000 + 4,800 –500
    June 9 + –300 –£300 (c)
    7,2000+ 4,800 + +050 + 14,000 = 12,000 + 10,000 + 4,800 – –500 – –300
    June 12 +£150 +£150
    – 7,200 + 4,800 + 150 + 14,000 = 12,000 + + 150 + 10,000 + 4,800 – –500 – –300
    June 15 + +1,250 –1,250 +00
    8,450 + 3,550 + 150 + 14,000 = 12,000 + + 150 + 10,000 + 4,800 – –500 – –300
    June 17 +100 –100 (d)
    + 8,450 + 3,550 + 150 + 14,000 = 12,000 + + 250 + 10,000 + 4,800 – –600 – –300
    June 20 + +1,500 + 1,500 (e)
    9,950 + 3,550 + 150 + +14,000 = 12,000 + + 250 + 10,000 + 6,300 – –600 – –300
    June 23 –500 –500
    + 9,450 + 3,550 + 150 + 14,000 = 11,500 + +0250 + 10,000 + 6,300 – –600 – –300
    June 26 –250 +0 –250 (f)
    9,200 + 3,550 + 150 + 14,000 = 11,500 + +0250 + 10,000 + 6,300 – –850 – –300
    June 29 –100 –100
    9,100 + 3,550 + 150 + 14,000 = 11,500 + 150 + 10,000 + 6,300 – –850 – –300
    June 30 –1,000 – –1,000 (g)
    £ 8,100 + £3,550 + £150 + £14,000 = £ 11,500 + £150 + £10,000 + £6,300 – £1,850 – £300

    £25,800 £25,800
    LO: 1.8
    Difficulty: Hard
    BLOOMCODE: Application
    AACSB: Analytic

    PROBLEM 1-4A (Continued)


    Key to Retained Earnings Column
    (a) Rent expense (e) Service revenue
    (b) Service revenue (f) Utilities expense
    (c) Dividends (g) Salaries and wages expense
    (d) Gasoline expense

    (b) STINER DELIVERIES LTD.


    Income Statement
    For the Month Ended June 30, 2017

    Revenues
    Service revenue (£4,800 + £1,500) ..................... £6,300
    Expenses
    Salaries and wages expense.............................. £1,000
    Rent expense ....................................................... 500
    Utilities expense .................................................. 250
    Gasoline expense................................................ 100
    Total expenses ............................................ 1,850
    Net income .................................................................. £4,450

    (c) STINER DELIVERIES LTD.


    Statement of Financial Position
    June 30, 2017
    Assets
    Equipment ................................................................... £14,000
    Supplies ....................................................................... 150
    Accounts receivable ................................................... 3,550
    Cash ............................................................................. 8,100
    Total assets ......................................................... £25,800
    Equity and Liabilities
    Equity
    Share capital—ordinary ...................................... £10,000
    Retained earnings (£4,450 – £300)..................... 4,150
    Total equity .................................................. £14,150
    Liabilities
    Notes payable ...................................................... 11,500
    Accounts payable ................................................ 150
    Total liabilities .............................................. 11,650
    Total equity and liabilities ....................................................... £25,800

    LO: 1.6, 1.7, 1.8


    Difficulty: Hard
    BLOOMCODE: Application
    AACSB: Analytic

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