Gb518 unit 1 | Accounting homework help

GB 518 UNIT 01 P1-1A P1-8A P2-3A P1-1A Identify how each of the following separate transactions affects financial statements. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. 1 Owner invests cash in exchange for stock2 Incurs legal costs on credit3 Pays cash for employee wages4 Borrows cash by signing long-term note payable5 Receives cash for services provided6 Buys land by signing note payable7 Buys office equipment for cash8 Provides services on credit9 Collects cash on receivable from transaction (8)10 Owner withdraws cash P1-8A J. D. Simpson started The Simpson Co., a new business that began operations on May 1. The Simpson Co. completed the following transactions during its first month of operations. May 1 J. D.Simpson invested $60,000 cash in the company in exchange for common stock. 1 The company rented a furnished office and paid $3,200 cash for May’s rent.3 The company purchased $1,680 of office equipment on credit.5 The company paid $800 cash for this month’s cleaning services.8 The company provided consulting services for a client and immediately collected $4,600 cash.12 The company provided $3,000 of consulting services for a client on credit.15 The company paid $850 cash for an assistant’s salary for the first half of this month.20 The company received $3,000 cash payment for the services provided on May 12.22 The company provided $2,800 of consulting services on credit.25 The company received $2,800 cash payment for the services provided on May 22.26 The company paid $1,680 cash for the office equipment purchased on May 3.27 The company purchased $60 of advertising in this month’s (May) local paper on credit; cash payment is due June 1.28 The company paid $850 cash for an assistant’s salary for the second half of this month.30 The company paid $200 cash for this month’s telephone bill.30 The company paid $480 cash for this month’s utilities.31 The company paid $1,200 cash for dividends. Required1. Arrange the following asset, liability, and equity titles in a table like Exhibit 1.9: Cash; Accounts Receivable; Office Equipment; Accounts Payable; Common Stock; Dividends; Revenues; and Expenses. 2. Show effects of the transactions on the accounts of the accounting equation by recording increase and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance. 3. Prepare an income statement for May, a statement of retained earnings for May, a May 31 balance sheet, and a statement of cash flows for May. P2-3A The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31 2010 2011Cash . . . . . . . . . . . . . . . . . . . . $ 52,500 $ 18,750Accounts receivable . . . . . . . . 28,500 22,350Office supplies . . . . . . . . . . . . . 4,500 3,300Office equipment . . . . . . . . . . 138,000 147,000Trucks . . . . . . . . . . . . . . . . . . . 54,000 54,000Building . . . . . . . . . . . . . . . . . . 0 180,000Land . . . . . . . . . . . . . . . . . . . . . 0 45,000Accounts payable . . . . . . . . . . 7,500 37,500Note payable . . . . . . . . . . . . . . 0 105,000 Late in December 2011, the business purchased a small office building and land for $225,000. It paid $120,000 cash toward the purchase and a $105,000 note payable was signed for the balance. Mr. Fabiano had to invest $35,000 cash in the business (in exchange for stock) to enable it to pay the $120,000 cash. The business also pays $3,000 cash per month for dividends. Required1. Prepare balance sheets for the business as of December 31, 2010 and 2011. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.)2. By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2011. 3. Compute the 2011 year-end debt ratio for the business