Accounting

Both the question and the sheet to fill out the answers are attached

ANSWERS

Problem #1: (20 points)

BI LOI, ACCURPUNCTURIST

Income Statement

For the Month Ended

September 30, 2009

————————————————————————————————————

Revenues

$___________

Expenses (list below)

____________________________________ $______________

____________________________________ ______________

__________________________________ ______________

____________________________________ ______________

Total expenses $___________

Net income $

BI LOI, ACCURPUNCTURIST

Owner’s Equity Statement

For the Month Ended September 30, 2009

—

———————————————————————————————————

Bi Loi, Capital, September 1 $___________

Add: ________________________ _____________

Subtotal $____________

Less: ________________________ ____________

Bi Loi, Capital, September 30 $

Problem #1 (continued))

BI LOI, ACCURPUNCTURIST

Balance Sheet

September 30, 2009
———————————————————————————————————

Assets (list all down below)

$

Total assets

$

Liabilities

and Owner’s Equity

Liabilities
$

Owner’s Equity $

Total liabilities and owner’s equity $

Problem #2: ANSWERS (30 points)

Entry #	Account.3.1.mjm	Debit	Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Problem #1:
(20 points) Prepare an income statement, an owner’s equity statement, and a balance sheet for the accupuncture practice of Bi Loi, from the items listed below for the month of September. Use the format on the answer sheet to insert your answers!!

Bi Loi, Capital, September 1 $42,000

Accounts payable 7,000

Equipment 30,000

Service revenue 25,000

Bi Loi, Drawings 6,000

Dental supplies expense 3,500

Cash 6,000

Utilities expense 700

Dental supplies 2,800

Salaries expense 9,000

Accounts receivable 14,000

Rent expense 2,000

Problem #2: (30 points)

Journalize the following business transactions in general journal form. Use the journal provided on the answer sheet. Identify each transaction by number. You may omit explanations of the transactions.

1. The owner, Athena Lu, invests $35,000 in cash in starting a real estate office operating as a sole proprietorship.

2. Purchased $400 of office supplies on credit.

3. Purchased office equipment for $8,000, paying $2,000 in cash and signed a 30-day, $6,000, note payable.

4. Real estate commissions billed to clients amount to $4,000.

5. Paid $700 in cash for the current month’s rent.

6. Paid $200 cash on account for office supplies purchased in transaction 2.

7. Received a bill for $600 for advertising for the current month.

8. Paid $2,200 cash for office salaries.

9. Lu withdrew $1,200 from the business for living expenses.

10. Received a check for $3,000 from a client in payment on account for commissions billed in transaction 4.