1. The document provides details of transactions for Weida Surveying, Inc. during September. It asks the student to analyze the effects of each transaction on the income statement and balance sheet, journalize each transaction, and describe situations where a cash payment would not involve recognizing an expense.
2. The document outlines transactions for Dr. Schekter's veterinary clinic during May 2015. It asks the student to analyze the effects of each transaction, prepare journal entries, post to ledger accounts, prepare a trial balance, and calculate totals from the trial balance to determine if May was a profitable month.
1. The document provides details of transactions for Weida Surveying, Inc. during September. It asks the student to analyze the effects of each transaction on the income statement and balance sheet, journalize each transaction, and describe situations where a cash payment would not involve recognizing an expense.
2. The document outlines transactions for Dr. Schekter's veterinary clinic during May 2015. It asks the student to analyze the effects of each transaction, prepare journal entries, post to ledger accounts, prepare a trial balance, and calculate totals from the trial balance to determine if May was a profitable month.
1. The document provides details of transactions for Weida Surveying, Inc. during September. It asks the student to analyze the effects of each transaction on the income statement and balance sheet, journalize each transaction, and describe situations where a cash payment would not involve recognizing an expense.
2. The document outlines transactions for Dr. Schekter's veterinary clinic during May 2015. It asks the student to analyze the effects of each transaction, prepare journal entries, post to ledger accounts, prepare a trial balance, and calculate totals from the trial balance to determine if May was a profitable month.
1. The document provides details of transactions for Weida Surveying, Inc. during September. It asks the student to analyze the effects of each transaction on the income statement and balance sheet, journalize each transaction, and describe situations where a cash payment would not involve recognizing an expense.
2. The document outlines transactions for Dr. Schekter's veterinary clinic during May 2015. It asks the student to analyze the effects of each transaction, prepare journal entries, post to ledger accounts, prepare a trial balance, and calculate totals from the trial balance to determine if May was a profitable month.
Weida Surveying, Inc., provides land surveying services. During September, its transactions included the following:
Sept. Paid rent for the month of September, $4,400.
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Sept. Billed Fine Line Homes $5,620 for surveying services. The entire amount is due 3 on or before September 28. (Weida uses an account entitled Surveying Revenue when billing clients.)
Sept. Provided surveying services to Sunset Ridge Developments for $2,830. The entire 9 amount was collected on this date.
Sept. Placed a newspaper advertisement in the Daily Item to be published in the
14 September 20 issue. The cost of the advertisement was $165. Payment is due in 30 days.
Sept. Received a check for $5,620 from Fine Line Homes for the amount billed on 25 September 3.
Sept. Provided surveying services to Thompson Excavating Company for $1,890.
26 Weida collected $400 cash, with the balance due in 30 days.
Sept. Sent a check to the Daily Item in full payment of the liability incurred on 29 September 14.
Sept. Declared and paid a $7,600 cash dividend to the companys stockholders. 30
Page 129 Instructions a. Analyze the effects that each of these transactions will have on the following six components of the companys financial statements for the month of September. Organize your answer in tabular form, using the column headings shown. Use I for increase, D for decrease, and NE for no effect. The September 1 transaction is provided for you: Income Statement Balance sheet Revenue Expense Net Assets Transaction Liabilities + Owners' Equity + = Income + Sept 1 NE I D D NE D
b. Prepare a journal entry (including explanation) for each of the above transactions.
c. Three of Septembers transactions involve cash payments, yet only one of these transactions is recorded as an expense. Describe three situations in which a cash payment would not involve recognition of an expense.
2. The Accounting Cycle: Journalizing, Posting, and Preparing a Trial Balance Dr. Schekter, DVM, opened a veterinary clinic on May 1, 2015. The business transactions for May are shown below:
May Dr. Schekter invested $400,000 cash in the business in exchange for 5,000 shares 1 of capital stock.
May Land and a building were purchased for $250,000. Of this amount, $70,000 4 applied to the land, and $180,000 to the building. A cash payment of $100,000 was made at the time of the purchase, and a note payable was issued for the remaining balance.
May Medical instruments were purchased for $130,000 cash.
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May Office fixtures and equipment were purchased for $50,000. Dr. Schekter paid 16 $20,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days.
May Office supplies expected to last several months were purchased for $5,000 cash. 21
May Dr. Schekter billed clients $2,200 for services rendered. Of this amount, $1,900 24 was received in cash, and $300 was billed on account (due in 30 days).
May A $400 invoice was received for several radio advertisements aired in May. The 27 entire amount is due on June 5.
May Received a $100 payment on the $300 account receivable recorded May 24. 28
May Paid employees $2,800 for salaries earned in May.
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A partial list of account titles used by Dr. Schekter includes:
Cash Notes Payable
Accounts Receivable Accounts Payable Office Supplies Capital Stock Medical Instruments Veterinary Service Revenue Office Fixtures and Advertising Expense Equipment Land Salary Expense Building
Instructions a. Analyze the effects that each of these transactions will have on the following six components of the companys financial statements for the month of May. Organize your answer in tabular form, using the column headings shown below. Use I for increase, D for decrease, and NE for no effect. The May 1 transaction is provided for you:
Income Statement Balance sheet
Transaction Revenue + Expense = Net Income Assets = Liabilities + Owners' Equity May 1 NE NE NE I NE I
b. Prepare journal entries (including explanations) for each transaction.
c. Post each transaction to the appropriate ledger accounts d. Prepare a trial balance dated May 31, 2015. e. Using figures from the trial balance prepared in part d, compute total assets, total liabilities, and owners equity. Did May appear to be a profitable month?
