Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Prepaid rent on balance sheet

08/11/2021 Client: muhammad11 Deadline: 2 Day

Exercise 2-15 A Prepaid Items On Financial Statements

Exercise 2-15A

Prepaid items on financial statements

Life, Inc., experienced the following events in 2016, its first year of operation:

1. Performed counseling services for $36,000 cash.

2. On February 1, 2016, paid $18,000 cash to rent office space for the coming year.

3. Adjusted the accounts to reflect the amount of rent used during the year.

Required

Based on this information alone:

a. Record the events under an accounting equation.

TABLE PROVIDED BELOW

EXERCISE 2-15A

a.

Life, Inc.

Effect of Events on the Accounting Equation

Assets

=

Stockholders’ Equity

Event

Cash

Prepaid Rent

=

Retained Earnings

1. Performed Services

36,000

36,000

2. Prepaid Rent

(18,000)

18,000

NA

3. Used Rent

(18,000)

(18,000)

Totals

18,000

0

=

18,000

*

b. Prepare an income statement, balance sheet, and statement of cash flows for the 2016 accounting period.

Life, Inc.

Income Statement

For the Year Ended December 31, 2016

Revenue

36,000

Expense

18,000

Net Income

18,000

Life, Inc.

Balance Sheet

As of December 31, 2016

Assets

Cash

36,000

Prepaid Rent

18,000

Total Assets

54,000

Liabilities

(18,000)

Stockholders’ Equity

Retained Earnings

Total Stockholders’ Equity

Total Liab. and Stockholders’ Equity

EXERCISE 2-15A b. (cont.)

Life, Inc.

Statement of Cash Flows

For the Year Ended December 31, 2016

Cash Flows From Operating Activities:

Cash Receipt from Revenue

Cash Payment for Rent

Net Cash Flow from Operating Activities

Cash Flows From Investing Activities

Cash Flows From Financing Activities:

Net Change in Cash

Plus: Beginning Cash Balance

Ending Cash Balance

c. Ignoring all other future events, what is the amount of rent expense that would be recognized

in 2017?

EXERCISE 2-19A

Exercise 2-19A on page 111

Exercise 2-19A Supplies, unearned revenue, and the financial statements model

Hart, Attorney at Law, experienced the following transactions in 2016, the first year of

operations:

1. Accepted $36,000 on April 1, 2016, as a retainer for services to be performed evenly over the

next 12 months.

2. Performed legal services for cash of $54,000.

3. Purchased $2,800 of office supplies on account.

4. Paid $2,400 of the amount due on accounts payable.

5. Paid a cash dividend to the stockholders of $5,000.

6. Paid cash for operating expenses of $31,000.

7. Determined that at the end of the accounting period $200 of office supplies remained on

hand.

8. On December 31, 2016, recognized the revenue that had been earned for services performed

in accordance with Transaction 1.

Required

Show the effects of the events on the financial statements using a horizontal statements model

like the following one. In the Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA

to indicate accounts not affected by the event. The first event has been recorded as an example.

Event

Assets 5 Liabilities 1 Stk. Equity

No. Cash 1 Supplies 5 Accts. Pay 1 Unearn. Rev. 1 Ret. Earn. Rev. 2 Exp. 5 Net Inc. Cash Flow

1. 36,000 1 NA 5 NA 1 36,000 1 NA NA 2 NA 5 NA 36,000 OA

TABLE PROVIDED BELOW

Hart Attorney At Law

Effect of Transactions on the Financial Statements for 2016

Balance Sheet

Income Statement

Statement of

Assets

=

Liabilities

+

S. Equity

Rev

-

Exp.

=

Net Inc.

Cash Flows

No.

Cash

+

Supplies

=

Accts. Payable

+

Unearn. Rev.

+

Retained

Earnings

1.

+

=

+

+

-

=

2.

+

=

+

+

-

=

3.

+

=

+

+

-

=

4.

+

=

+

+

-

=

5.

+

=

+

+

-

=

6.

+

=

+

+

-

=

7.

+

=

+

+

-

=

8.

+

=

+

+

-

=

Totals

51,600

+

200

=

400

+

9,000

+

42,400

81,000

-

33,600

=

47,400

51,600 NC

EXERCISE 2-27A

Exercise 2-27A Effect of accounting events on the income statement and statement

of cash flows

Required

Explain how each of the following events or series of events and the related adjusting entry will

affect the amount of net income and the amount of cash flow from operating activities reported

on the year-end financial statements. Identify the direction of change (increase, decrease, or NA)

and the amount of the change. Organize your answers according to the following table. The first

event is recorded as an example. If an event does not have a related adjusting entry, record only

Cash Flows from

Net Income Operating Activities

Event/ Direction of Amount of Direction of Amount of

Adjustment Change Change Change Change

a NA NA Decrease $9,000

Adj Decrease $2,250 NA NA

a. Paid $9,000 cash on October 1 to purchase a one-year insurance policy.

b. Purchased $2,000 of supplies on account. Paid $500 cash on accounts payable. The ending

balance in the Supplies account, after adjustment, was $300.

c. Provided services for $10,000 cash.

d. Collected $2,400 in advance for services to be performed in the future. The contract called for

services to start on May 1 and to continue for one year.

e. Accrued salaries amounting to $5,600.

f. Sold land that cost $3,000 for $3,000 cash.

g. Acquired $15,000 cash from the issue of common stock.

h. Earned $12,000 of revenue on account. Collected $8,000 cash from accounts receivable.

i. Paid cash operating expenses of $4,500.

e. Paid cash for rent expense.

f. Performed services for cash.

g. Performed services for clients on account.

h. Collected cash from accounts receivable.

i. Received cash for services to be performed in the future.

j. Purchased land with cash.

TABLE PROVIDED BELOW

Net Income

Cash Flow from

Operating Activities

Event/Adj.

Direction of Change

Amount of Change

Direction of Change

Amount of Change

a. Event

Adj.

b. Event

Adj.

b. Event

No adj.

d. Event

Adj.

e. Event

No adj.

f. Event

No adj.

f. Event

No adj.

g. Event

No adj.

h. Event

No adj.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Phd Writer
Chartered Accountant
Top Academic Guru
Supreme Essay Writer
Homework Tutor
Accounting Homework Help
Writer Writer Name Offer Chat
Phd Writer

ONLINE

Phd Writer

This project is my strength and I can fulfill your requirements properly within your given deadline. I always give plagiarism-free work to my clients at very competitive prices.

$22 Chat With Writer
Chartered Accountant

ONLINE

Chartered Accountant

I am an experienced researcher here with master education. After reading your posting, I feel, you need an expert research writer to complete your project.Thank You

$17 Chat With Writer
Top Academic Guru

ONLINE

Top Academic Guru

I am a PhD writer with 10 years of experience. I will be delivering high-quality, plagiarism-free work to you in the minimum amount of time. Waiting for your message.

$45 Chat With Writer
Supreme Essay Writer

ONLINE

Supreme Essay Writer

I have written research reports, assignments, thesis, research proposals, and dissertations for different level students and on different subjects.

$45 Chat With Writer
Homework Tutor

ONLINE

Homework Tutor

This project is my strength and I can fulfill your requirements properly within your given deadline. I always give plagiarism-free work to my clients at very competitive prices.

$42 Chat With Writer
Accounting Homework Help

ONLINE

Accounting Homework Help

I am a PhD writer with 10 years of experience. I will be delivering high-quality, plagiarism-free work to you in the minimum amount of time. Waiting for your message.

$38 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Linda albert cooperative discipline quotes - Any good tutor in Accounting & finance field - New hardware - Linuxzoo net tutorials - Profissional writing help - Costume design body outline - Two Paragraphs - Due in 1 hour - For heidi with blue hair analysis - Numerical coefficient and literal coefficient examples - Four types of market structure - Clyde hart 800m training - English techniques in macbeth - Algebra with pizzazz objective 5 e answers - How to calculate nursing staffing needs - Equilibrium and lechatelier's principle lab answers - Cow eye pupil shape - Designspark mechanical user manual pdf - Toms shoes revenue 2014 - University physics with modern physics 12e young - Data structure and Algorithm Analysis - Building a smarter planet - Week 5 Discussion - Balata golf balls wiki - International business 2 - Legal,Ethical & Social Environment - The book of ruth offers a ray of hope - Loanhead primary school website - Velocity describes both speed and - Icd 10 code for cholecystectomy with intraoperative cholangiogram - Ballarat base hospital outpatients - What does 0.2 fte mean - Micom relay price list - Excel 2016 capstone project ex 1 - Cr 36 compressor capacity - Five points on impacts of IT to society - Pick one of the following terms for your research - No son of mine succeeding - Moderate frame black picture style - Vce units 3 and 4 english - 12$$ - 700 word discussion: Complexity is increasing as new technologies are emerging every day. This complexity impacts human experiences. Organizations are turning to digitally enabled solutions to assist with the emergence of digitalization. - Shadow health focused exam chest pain brian foster - Mortgage loan data table xlsx - Training at keller globe case study - Example of a character sketch bible study - Writing - English 365 - Inappropriate footwear centre of gravity - Erosion no 2 mother earth laid bare - Analysis of copper in a brass sample - Managing organizational change a multiple perspectives approach ppt - Using Assessment for Succession Planning (Paper) - Isol 531 - WALMART MARKING PLAN - Barbell hip thrust athlean x - Ontario french immersion curriculum - Creative Solutions - Blog - Eagle arduino mega 2560 - Cisco small business srp500 - Statistics 3 - Mass effect 1 feros water valves - Blast and fasta in bioinformatics - Week 7 n 500 - Why scandinavian prisons are superior thesis statement - Wmu math tutor lab - How to use color in film pdf - Birthday cake method for prime factorization - A cost that should be ignored when evaluating a project - Where is rome located - Electron dot structure of c2h5oh - Is an exposition a persuasive text - Animal farm chapter 8 summary sparknotes - 4 pages work - PL W2 - Week 4 Part 2 - Writing about a tv show in an essay - Double pole double throw relay schematic - Uq my si net - Adt stands for in data structure - 4 figure grid reference example - What was marie curie's childhood like - What is a threat abatement plan - Ashdown ingram regency park - Hills district farm equipment - Fill in the blanks of the primate tree - Final Paper - Average heart rate of daphnia - Read Carefully - 972 849 0341 - Current density of copper wire - Never let me go miss lucy tells the truth - Assessment Plan - Vce japanese listening practice - Flipped classroom book pdf - Sample sop for masters in marketing - Mountain view realty excel assignment answers - If ssw = 126, n = 28, k = 4, then what is the value of sw2 - Famous people in psychology - Amyr name of the wind