240.The records of Roadmaster Auto Rentals, Inc. show the following information as of December 31. The owner, Rob Fletcher, the sole stockholder, received a dividend of $52,000 during the year. Prepare a December income statement, a December statement of retained earnings, and a December 30 balance sheet.
Accounts payable$36,000Wages expense$75,000
Insurance expense2,000Advertising expense22,000
Accounts receivable24,000Cash11,000
Retained earnings,January 1150,000Office Furniture15,000
Airplanes150,000Maintenance expense39,000
Notes payable47,000Revenues217,000
Hangar60,000
AssetsLiabilities
Cash$11,000Accounts payable$36,000
Accounts receivable24,000Notes payable47,000
Airplanes150,000Total liabilities$83,000
Hangar60,000Stockholders’ Equity
Office furniture15,000Common stock + Retained earnings177,000
Total assets$260,000Total liabilities and equity$260,000
241.Verity Siding Company, Inc., owned by S. Verity, began operations in May and completed the following transactions during that first month of operations. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns in the table below. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.
May1S. Verity invested $90,000 cash in the company.
2The company purchased $25,000 in office equipment. It paid $10,000 in cash and signed a note payable promising to pay the $15,000 over the next three years.
2The company rented office space and paid $3,000 for the May rent.
6The company installed new vinyl siding for a customer and immediately collected $5,000.
7The company paid a supplier $2,000 for siding materials used on the May 6 job.
8The company purchased a $2,500 copy machine for office use on credit.
9The company completed work for additional customers on credit in the amount of $16,000.
15The company paid its employees’ salaries $2,300 for the first half of the month.
17The company installed new siding for a customer and immediately collected $2,400.
20The company received $10,000 in payments from the customers billed on May 9.
28The company paid $1,500 on the copy machine purchased on May 8. It will pay the remaining balance in June.
31The company paid its employees’ salaries $2,400 for the second half of the month.
31The company paid a supplier $5,300 for siding materials used on the remaining jobs completed during May.
31The company paid $450 for this month’s utility bill.
VERITY SIDING CO.
DateAssets =Liabilities +Equity
MayCashAccounts ReceivableEquipmentAccounts PayableNotes Payable Common stock Dividends Revenues Expenses
1
2
3
4
5
6
7
8
9
15
17
20
28
31
31
31
$-$-$-$-$-$-$-$-$-