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3 years ago

On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month:

Business

1 answer:

Bezzdna [24]3 years ago

6 0

Answer:

Affordable Realty

1. Journal Entries:

Oct. 1 Debit Cash $30,600

Credit Common Stock $30,600

To record the capital contribution of Jay Crowley.

Oct. 2 Debit Rent Expense $2,750

Credit Cash $2,750

To record the payment for monthly rent.

Oct. 3 Debit Supplies $2,350

Credit Accounts Payable $2,350

To record the purchase of supplies on account.

Oct. 4 Debit Accounts Payable $890

Credit Cash $890

To record the payment on account.

Oct. 5 Debit Cash $15,800

Credit Service Revenue $15,800

To record the receipt of sales commission for cash.

Oct. 6 Debit Automobile expenses $1,600

Debit Miscellaneous expenses, $680

Credit Cash $2,280

To record the payment of expenses.

Oct. 7 Debit Office salaries expenses $2,000

Credit Cash $2,000

To record the payment of office salaries for the month.

Oct. 8 Debit Supplies Expense $1,150

Credit Supplies $1,150

To record the supplies expenses for the month.

Oct. 9 Debit Cash Dividends, $2,800

Credit Cash $2,800

To record the payment of dividends.

2. T-accounts:

Cash

Date Account Titles Debit Credit

Oct. 1 Common Stock $30,600

Oct. 2 Rent Expense $2,750

Oct. 4 Accounts Payable 890

Oct. 5 Service Revenue 15,800

Oct. 6 Automobile expenses 1,600

Oct. 6 Miscellaneous expenses 680

Oct. 7 Office salaries expense 2,000

Oct. 9 Cash Dividends 2,800

Oct. 31 Balance $35,680

Common Stock

Date Account Titles Debit Credit

Oct. 1 Cash $30,600

Supplies

Date Account Titles Debit Credit

Oct. 3 Accounts Payable $2,350

Oct. 8 Supplies Expense $1,150

Oct. 31 Balance $1,200

Accounts Payable

Date Account Titles Debit Credit

Oct. 3 Supplies $2,350

Oct. 4 Cash $890

Oct. 31 Balance $1,460

Service Revenue

Date Account Titles Debit Credit

Oct. 5 Cash $15,800

Rent Expense

Date Account Titles Debit Credit

Oct. 2 Cash $2,750

Supplies Expense

Date Account Titles Debit Credit

Oct. 8 Supplies $1,150

Automobile Expense

Date Account Titles Debit Credit

Oct. 6 Cash $1,600

Miscellaneous Expense

Date Account Titles Debit Credit

Oct. 6 Cash $680

Office Salaries Expense

Date Account Titles Debit Credit

Oct. 7 Cash $2,000

Cash Dividends

Date Account Titles Debit Credit

Oct. 9 Cash $2,800

3. Unadjusted Trial Balance as of October 31, 20Y6

Account Titles Debit Credit

Cash $35,680

Supplies 1,200

Common stock $30,600

Accounts payable 1,460

Service revenue 15,800

Rent expense 2,750

Supplies expense 1,150

Automobile expense 1,600

Miscellaneous expense 680

Office salaries expense 2,000

Cash dividends 2,800

Total $47,860 $47,860

4. a. Amount of total revenue recorded in the ledger = $15,800

b. Amount of total expenses = $10,980

c. Amount of net income for October = $4,820 ($15,800 - $10,980)

5. Increase in retained earnings for October = $2,020 ($4,820 - $2,800)

Explanation:

a) Data and Analysis:

Oct. 1 Cash $30,600 Common Stock $30,600

Oct. 2 Rent Expense $2,750 Cash $2,750

Oct. 3 Supplies $2,350 Accounts Payable $2,350

Oct. 4 Accounts Payable $890 Cash $890

Oct. 5 Cash $15,800 Service Revenue $15,800

Oct. 6 Automobile expenses $1,600 Miscellaneous expenses, $680 Cash $2,280

Oct. 7 Office salaries expense, $2,000 Cash $2,000

Oct. 8 Supplies Expense $1,150 Supplies $1,150

Oct. 9 Cash Dividends, $2,800 Cash $2,800

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Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold ev

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Answer:

The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

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3 years ago

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Andrej [43]

Answer:

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b) 16.8 months

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a) To find the monthly cash expenses, we have:

Monthly cash expenses = negative cash flow from operations / 12

= 23018 / 12

= $1,918.17

b) To find the ratio of cash to monthly cash expenses, we have:

Ratio of cash to monthly cash expenses = Year end cash / monthly cash expenses

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