BradBradCarterCarterstarted a mobile DJ business namedParty Wh.pdf
BradBrad CarterCarter started a mobile DJ business named Party WheelsParty Wheels?, ?Inc., on AprilApril ?1, 20162016. In the month of AprilApril?, prior to providing services to? customers, the business incurred six transactions which have been posted to the accounts as?follows: LOADING... ?(Click the icon to view the? accounts.)Read the requirements LOADING... . Requirement 1. Based on the? accounts, create the journal entries that resulted from the six transactions. Include explanations with each journal entry. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.) Journal Entry Date Accounts and Explanations Debit Credit (1) Journal Entry Date Accounts and Explanations Debit Credit (2) Journal Entry Date Accounts and Explanations Debit Credit (3) Journal Entry Date Accounts and Explanations Debit Credit (4) Journal Entry Date Accounts and Explanations Debit Credit (5) Journal Entry Date Accounts and Explanations Debit Credit (6) Requirement 2. Calculate the ending balance in each account. Enter the? amount, along with a? \"Bal\" reference on the appropriate side of each? T-account. Cash Supplies Equipment Building (1) 30,000 (4) 2,000 (2) 1,200 (4) 2,000 (3) 120,000 (5) 2,000 (6) 400 Accounts payable Notes payable Common stock (6) 400 (2) 1,200 (5) 2,000 (3) 120,000 (1) 30,000 Requirement 3. Prepare the trial balance for Party WheelsParty Wheels?, ?Inc., at AprilApril ?30, 20162016. Party Wheels, Inc. Trial Balance April 30, 2016 Account Debit Credit Total Requirement 4. Prepare a balance sheet for Party WheelsParty Wheels?, ?Inc., as of AprilApril ?30, 20162016. First complete the asset portion of the? statement, and then complete the liabilities and? stockholders\' equity sections of the statement. ?(If a box is not used in the? statement, leave the box? empty; do not select a label or enter a? zero.) Party Wheels, Inc. Balance Sheet April 30, 2016 Assets Total assets Liabilities Total liabilities Stockholders\' Equity Total liabilities and stockholders\' equity Journal Entry Date Accounts and Explanations Debit Credit (1) Solution Answers Journal Entry Date Accounts and Explanations Debit Credit 1 Cash $ 30,000.00 Common Stock $ 30,000.00 (common stock issued and acash received) Journal Entry Date Accounts and Explanations Debit Credit 2 Supplies $ 1,200.00 Accounts Payable $ 1,200.00 (Supplies purchased on account) Journal Entry Date Accounts and Explanations Debit Credit 3 Building $ 120,000.00 Notes Payable $ 120,000.00 (Building purchased and notes payable issued against purchase) Journal Entry Date Accounts and Explanations Debit Credit 4 Equipment $ 2,000.00 Cash $ 2,000.00 (Equipment purchased for cash) Journal Entry Date Accounts and Explanations Debit Credit 5 Notes Payable $ 2,000.00 Cash $ 2,000.00 (Notes payable paid in cash) Journal Entry Date Accounts and Explanations Debit Credit 6 Accounts Payable $ 400.00 Cash $ 400.00 (Cash paid to accounts payable) Cash Supplies Eq.
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BradBradCarterCarterstarted a mobile DJ business namedParty Wh.pdf
- 1. BradBrad CarterCarter started a mobile DJ business named Party WheelsParty Wheels?, ?Inc., on AprilApril ?1, 20162016. In the month of AprilApril?, prior to providing services to? customers, the business incurred six transactions which have been posted to the accounts as?follows: LOADING... ?(Click the icon to view the? accounts.)Read the requirements LOADING... . Requirement 1. Based on the? accounts, create the journal entries that resulted from the six transactions. Include explanations with each journal entry. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.) Journal Entry Date Accounts and Explanations Debit Credit (1) Journal Entry Date Accounts and Explanations Debit Credit (2) Journal Entry Date Accounts and Explanations Debit
- 2. Credit (3) Journal Entry Date Accounts and Explanations Debit Credit (4) Journal Entry Date Accounts and Explanations Debit Credit (5) Journal Entry Date Accounts and Explanations Debit Credit (6) Requirement 2. Calculate the ending balance in each account. Enter the? amount, along with a? "Bal" reference on the appropriate side of each? T-account. Cash Supplies Equipment Building (1) 30,000 (4) 2,000 (2) 1,200 (4) 2,000 (3) 120,000
- 3. (5) 2,000 (6) 400 Accounts payable Notes payable Common stock (6) 400 (2) 1,200 (5) 2,000 (3) 120,000 (1) 30,000 Requirement 3. Prepare the trial balance for Party WheelsParty Wheels?, ?Inc., at AprilApril ?30, 20162016. Party Wheels, Inc. Trial Balance April 30, 2016 Account Debit Credit Total Requirement 4. Prepare a balance sheet for Party WheelsParty Wheels?, ?Inc., as of AprilApril ?30, 20162016.
- 4. First complete the asset portion of the? statement, and then complete the liabilities and? stockholders' equity sections of the statement. ?(If a box is not used in the? statement, leave the box? empty; do not select a label or enter a? zero.) Party Wheels, Inc. Balance Sheet April 30, 2016 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total liabilities and stockholders' equity Journal Entry Date Accounts and Explanations Debit Credit (1) Solution Answers Journal Entry Date Accounts and Explanations Debit Credit 1 Cash $ 30,000.00 Common Stock $ 30,000.00 (common stock issued and acash received) Journal Entry Date Accounts and Explanations
- 5. Debit Credit 2 Supplies $ 1,200.00 Accounts Payable $ 1,200.00 (Supplies purchased on account) Journal Entry Date Accounts and Explanations Debit Credit 3 Building $ 120,000.00 Notes Payable $ 120,000.00 (Building purchased and notes payable issued against purchase) Journal Entry Date Accounts and Explanations Debit Credit 4 Equipment $ 2,000.00 Cash $ 2,000.00 (Equipment purchased for cash) Journal Entry Date Accounts and Explanations Debit Credit 5
- 6. Notes Payable $ 2,000.00 Cash $ 2,000.00 (Notes payable paid in cash) Journal Entry Date Accounts and Explanations Debit Credit 6 Accounts Payable $ 400.00 Cash $ 400.00 (Cash paid to accounts payable) Cash Supplies Equipment Building 1 $ 30,000.00 4 $ 2,000.00 2 $ 1,200.00 Bal $ 1,200.00 4 $ 2,000.00 Bal $ 2,000.00 3 $ 120,000.00 Bal
- 7. $ 120,000.00 5 $ 2,000.00 6 $ 400.00 Bal $ 25,600.00 Total $ 30,000.00 Total $ 30,000.00 Total $ 1,200.00 Total $ 1,200.00 Total $ 2,000.00 Total $ 2,000.00 Total $ 120,000.00 Total $ 120,000.00 Accounts payable Notes payable Common stock 6 $ 400.00 2 $ 1,200.00 5 $ 2,000.00 3 $ 120,000.00 Bal
- 8. $ 30,000.00 1 $ 30,000.00 Bal $ 800.00 Bal $ 118,000.00 TOtal $ 1,200.00 TOtal $ 1,200.00 TOtal $ 120,000.00 TOtal $ 120,000.00 TOtal $ 30,000.00 TOtal $ 30,000.00 Party Wheels, Inc. Trial Balance April 30, 2016 Account Debit Credit Cash $ 25,600.00 Supplies $ 1,200.00 Equipment $ 2,000.00 Building $ 120,000.00 Accounts payable $ 800.00
- 9. Notes payable $ 118,000.00 Common stock $ 30,000.00 Total $ 148,800.00 $ 148,800.00 Party Wheels, Inc. Balance Sheet April 30, 2016 Assets Cash $ 25,600.00 Supplies $ 1,200.00 Equipment $ 2,000.00 Building $ 120,000.00 Total assets $ 148,800.00 Liabilities Accounts payable $ 800.00 Notes payable $ 118,000.00 Total liabilities $ 118,800.00 Stockholders' Equity Common stock $ 30,000.00 Total liabilities and stockholders' equity $ 148,800.00 Journal Entry
- 10. Date Accounts and Explanations Debit Credit 1 Cash $ 30,000.00 Common Stock $ 30,000.00 (common stock issued and acash received) Journal Entry Date Accounts and Explanations Debit Credit 2 Supplies $ 1,200.00 Accounts Payable $ 1,200.00 (Supplies purchased on account) Journal Entry Date Accounts and Explanations Debit Credit 3 Building $ 120,000.00 Notes Payable $ 120,000.00 (Building purchased and notes payable issued against purchase) Journal Entry Date Accounts and Explanations Debit
- 11. Credit 4 Equipment $ 2,000.00 Cash $ 2,000.00 (Equipment purchased for cash) Journal Entry Date Accounts and Explanations Debit Credit 5 Notes Payable $ 2,000.00 Cash $ 2,000.00 (Notes payable paid in cash) Journal Entry Date Accounts and Explanations Debit Credit 6 Accounts Payable $ 400.00 Cash $ 400.00 (Cash paid to accounts payable)