Connect Financial audit Chapter 1 Assignment

Q1. Identify how each the the complying with separate transactions 1 with 10 affect financial statements. For increases, ar a “+” and the dollar amount in the obelisk or columns. Because that decreases, ar a “−” and the dollar amount in the obelisk or columns. Part cells might contain both rise (+) and also a decrease (−) along with dollar amounts. The very first transaction is completed as an example.

You are watching: Sanyu sony started a new business and completed these transactions during december.

For the balance sheet, identify how each transaction affects complete assets, total liabilities, and also total equity. For the revenue statement, identify exactly how each transaction affects net income.For the declare of cash flows, identify how each transaction affect cash operation from operating activities, cash operation from investing activities, and also cash flows from gaue won activities.

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Q2. Gabi Gram began The Gram Co., a brand-new business that started operations on might 1. The Gram Co. Perfect the following transactions throughout its very first month of operations.

May 1 G. Gram invested $43,500 cash in the firm in exchange because that its typical stock.May 1 The firm rented a furnished office and paid $2,200 cash because that May’s rent.May 3 The company purchased $1,940 that office devices on credit.May 5 The company paid $770 cash for this month’s clean services.May 8 The company provided consulting solutions for a customer and immediately accumulated $5,600 cash.May 12 The company listed $2,500 that consulting services for a client on credit.May 15 The firm paid $730 cash for an assistant’s salary because that the very first half that this month.May 20 The firm received $2,500 cash payment for the services detailed on may 12May 22 The company noted $3,800 the consulting services on credit.May 25 The agency received $3,800 cash payment for the services noted on might 22.May 26 The company paid $1,940 cash because that the office tools purchased on may 3.May 27 The company purchased $90 of office equipment on credit.May 28 The agency paid $730 cash because that an assistant’s salary because that the second half of this month.May 30 The company paid $350 cash because that this month’s call bill.May 30 The agency paid $260 cash because that this month’s utilities.May 31 The agency paid $1,400 cash in dividends to the owner (sole shareholder).

Enter the amount of each transaction on individual items that the accountancy equation. Perform not determine brand-new account balances after every transaction. (Enter the transactions in the provided order. Go into reductions to account balances through a minus sign. Choose “NA” if the transaction does not incorporate an expense.)

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Q3. Gabi Gram began The Gram Co., a brand-new business that began operations on may 1. The Gram Co. Perfect the following transactions throughout its very first month the operations.

May 1 G. Gram invest $43,500 cash in the firm in exchange for its typical stock.May 1 The agency rented a furnished office and also paid $2,200 cash because that May’s rent.May 3 The firm purchased $1,940 the office equipment on credit.May 5 The company paid $770 cash for this month’s cleaning services.May 8 The company provided consulting services for a customer and immediately built up $5,600 cash.May 12 The company noted $2,500 that consulting solutions for a customer on credit.May 15 The firm paid $730 cash because that an assistant’s salary because that the very first half the this month.May 20 The firm received $2,500 cash payment because that the services detailed on may 12May 22 The company detailed $3,800 the consulting services on credit.May 25 The agency received $3,800 cash payment because that the services detailed on might 22.May 26 The agency paid $1,940 cash for the office tools purchased on may 3.May 27 The agency purchased $90 that office devices on credit.May 28 The agency paid $730 cash because that an assistant’s salary for the second half of this month.May 30 The firm paid $350 cash because that this month’s telephone bill.May 30 The agency paid $260 cash for this month’s utilities.May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder).

Prepare income statement for May.

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Prepare statement of retained earnings for May.

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Prepare balance sheet for may 31.

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Prepare explain of cash flows because that May.

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Q4. Sanyu Sony began a new business and completed these transactions during December.

Dec.1Sanyu Sony transferred $66,400 cash native a personal savings account to a check account in the name of Sony electric in exchange for its typical stock.
2The company rented office room and paid $1,200 cash for the December rent.
3The firm purchased $14,900 of electric equipment by payment $6,700 cash and also agreeing to pay the $8,200 balance in 30 days.
5The agency purchased office supplies by paying $800 cash.
6The company completed electric work and also immediately collected $1,300 cash because that these services.
8The agency purchased $2,760 the office tools on credit.
15The firm completed electric work on credit in the lot of $6,000.
18The company purchased $410 of office gives on credit.
20The firm paid $2,760 cash because that the office equipment purchased ~ above December 8.
24The agency billed a client $900 for electric work completed; the balance is due in 30 days.
28The firm received $6,000 cash for the work completed on December 15.
29The agency paid the assistant’s value of $1,500 cash for this month.
30The company paid $530 cash for this month’s utility bill.
31The firm paid $970 cash in dividends to the owner (sole shareholder).

Enter the quantity of each transaction on separation, personal, instance items that the bookkeeping equation. (Enter reductions to account balances with a minus sign.)

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Q5. Sanyu Sony started a new business and also completed these transactions throughout December.

Dec.1Sanyu Sony transferred $66,400 cash indigenous a personal savings account to a check account in the name of Sony electric in exchange for its common stock.
2The company rented office an are and paid $1,200 cash because that the December rent.
3The agency purchased $14,900 of electrical equipment by payment $6,700 cash and also agreeing to salary the $8,200 balance in 30 days.
5The agency purchased office provides by paying $800 cash.
6The firm completed electric work and also immediately built up $1,300 cash for these services.
8The firm purchased $2,760 the office devices on credit.
15The agency completed electric work on credit in the amount of $6,000.
18The firm purchased $410 that office provides on credit.
20The company paid $2,760 cash because that the office equipment purchased top top December 8.
24The company billed a customer $900 for electrical work completed; the balance is due in 30 days.
28The firm received $6,000 cash for the work-related completed ~ above December 15.
29The firm paid the assistant’s value of $1,500 cash for this month.
30The firm paid $530 cash for this month’s utility bill.
31The firm paid $970 cash in dividends to the owner (sole shareholder).

Prepare an earnings statement for the current month.

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Prepare a declare of retained revenue for the present month.

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Prepare a balance sheet together of the finish of the month.

Prepare a explain of cash flows for the current month.

Q6. If equity is $30,000 and liabilities room $19,000, climate assets have to equal:

$11,000$19,000$49,000$30,000

Q7. During its an initial year that operations, Mario Lupo developed Lupo firm as a corporation and also personally invest $15,000 in the company in exchange for common stock. Lupo firm also paid dividends of $2,000. The company earned $35,000 the revenues and also incurred $23,000 that expenses. In ~ the end of the year, the company’s same totaled:

$13,000$15,000$25,000$75,000

Q8. Return on assets measures a company’s capacity to generate an enough return top top its investment in:

common stockprofitabilityrevenuesassets

Q9. The return ~ above assets because that your small business was 11.2% last year and 12.6% this year. Your return on assets:

ImprovedWorsenedStayed about the same

Q10. Rosalind firm reported revenues of $111,500, costs of $92,545, and also net earnings of $18,955 for the year. Legacy totaled $200,000 in ~ the start of the year and also $246,000 in ~ the finish of the year. The company’s return ~ above assets for the year (round the percent to one decimal) is:

8.5%5.0%9.5%11.8%

Q11. Share the adhering to business activities using the drop-down list.

Happenings that impact the bookkeeping equation – EventsExchanges that value in between two reality – External TransactionsExchanges within an reality – Internal Transactions

Q12. The business pays $2,000 in cash to the landlord because that office room rent

Expenses alleviate by $2,000Equity stays unchangedEquity reduce by $2,000Assets increase by $2,000Liabilities minimize by $2,000

Q13. ~ above January 31, Jean Consulting company receives a invoice for that month’s utilities in the quantity of $500. Jean sets the aside due to the fact that she go not arrangement to salary the bill until its due date of February 15. What effect, if any, walk this event have ~ above the company’s bookkeeping equation as of January 31?

The service must document this event, which would certainly decrease cash and also decrease same on January 31.The business must record this event, which would certainly decrease cash and increase equity on January 31.The service must record this event, which would increase liabilities and decrease same on January 31.Because the invoice is set aside for payment in February, there would certainly be no effect on the accountancy equation as of January 31.

Q14. The four basic financial explanation are:

Income Statement, sheet of preserved earnings, Balance statement, and also Statement of cash flows.Income Statement, statement of earnings, Balance statement, and Statement of cash flows.Income sheet, declare of preserved earnings, Balance sheet, and also Statement of cash flows.Income Statement, statement of kept earnings, Balance sheet, and also Statement the cash flows.

Q15. Recognize which item belong ~ above the earnings statement.

Accounts receivable, net income, and dividendsRevenue, expenses and also net incomeCash, accounts receivable, and common stockDividends, start retained earnings, finishing retained earnings

Q16. Identify which items belong ~ above the statement of retained earnings.

Accounts receivable, network income, and also dividendsRevenue, expenses and also net incomeCash, accounts receivable, and common stockDividends, beginning retained earnings, ending retained earnings

Q17. Recognize which item belong ~ above the balance sheet.

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Accounts receivable, net income, and dividendsRevenue, expenses and net incomeCash, accounts receivable, and also common stockDividends, beginning retained earnings, finishing retained earnings

Q18. Determine which items belong top top the declare of cash flows.

Accounts receivable, net income, and also dividendsCash operation from investing, operating and financing activitiesCash, account receivable, and also common stockDividends, start retained earnings, ending retained earnings