Principles of accounting

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Principles of accounting

  1. 1. Transaction Analysis (problem 2.1) Hemphill Enterprise, Inc. Month of x, 200y ASSETS LIABILITIES OWNERS EQUITY = + Office Office Accounts Accounts Notes Common RetainedCash Building Supplies Equipment Receivable Payable Payable Stock Earning
  2. 2. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000Transaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000
  3. 3. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 )Transaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000
  4. 4. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c ) (4000) 4000Transaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash
  5. 5. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c ) (4000) 4000 d 36000 36000Transaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit
  6. 6. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 RevenueTransaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit e. Completed a project on credit and billed the clients 4000
  7. 7. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 Revenue f (1000) (1000) ExpenseTransaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit e. Completed a project on credit and billed the clients f. Advertisement expense 1000 4000
  8. 8. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 Revenue f (1000) (1000) Expense g 18000 18000 RevenueTransaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit e. Completed a project on credit and billed the clients f. Advertisement expense 1000 4000 g. Completed a projected and collected 18000 cash
  9. 9. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 Revenue f (1000) (1000) Expense g 18000 18000 Revenue h (2000) (2000)Transaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit e. Completed a project on credit and billed the clients f. Advertisement expense 1000 4000 g. Completed a projected and collected 18000 cash h. Paid 2000 against transaction d
  10. 10. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 Revenue f (1000) (1000) Expense g 18000 18000 Revenue h (2000) (2000) i 3000 (3000)Transaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit e. Completed a project on credit and billed the clients f. Advertisement expense 1000 4000 g. Completed a projected and collected 18000 cash h. Paid 2000 against transaction d i. Receive 3000 against transaction e
  11. 11. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 Revenue f (1000) (1000) Expense g 18000 18000 Revenue h (2000) (2000) i 3000 (3000) j (2500) (2500) ExpenseTransaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit j. Wages paid cash 2500 e. Completed a project on credit and billed the clients f. Advertisement expense 1000 4000 g. Completed a projected and collected 18000 cash h. Paid 2000 against transaction d i. Receive 3000 against transaction e
  12. 12. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 Revenue f (1000) (1000) Expense g 18000 18000 Revenue h (2000) (2000) i 3000 (3000) j (2500) (2500) Expense k. (1800) (1800) DividendTransaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit j. Wages paid cash 2500 e. Completed a project on credit and billed the clients f. Advertisement expense 1000 k. Declared and paid a 1800 cash dividend 4000 g. Completed a projected and collected 18000 cash h. Paid 2000 against transaction d i. Receive 3000 against transaction e
  13. 13. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earning a 60000 30000 90000 b (50000 300000 250000 c (4000) ) 4000 d 36000 36000 e 4000 4000 Revenue f (1000) (1000) Expense g 18000 18000 Revenue h (2000) (2000) i 3000 (3000) j (2500) (2500) Expense k. (1800) (1800) Dividend 19700 300000 4000 66000 1000 34000 250000 90000 16700 390700 390700 EqualTransaction : a.. Sold 9000 share of TK 10 par value common stock in exchange tk 60000 cash and office equipment tk 30000 b. Purchase a small building for tk 300000 in which 50000 cash & signed a note payable for 250000 c. Purchase 4000 of office supplies for cash d. Purchase 36000 of office equipment on credit j. Wages paid cash 2500 e. Completed a project on credit and billed the clients f. Advertisement expense 1000 k. Declared and paid a 1800 cash dividend 4000 g. Completed a projected and collected 18000 cash h. Paid 2000 against transaction d i. Receive 3000 against transaction e
  14. 14. Transaction Analysis Hemphill Enterprise, Inc. Month of x, 200y ASSETS = LIABILITIES + OWNERS EQUITY Office Office Accounts Accounts Notes Common Retained Cash Building Supplies Equipment Receivable Payable Payable Stock Earninga 60000 30000 90000b (5000 300000 25000c 0) 0d (4000) 4000 Income Statement 36000 36000e 4000 4000 Revenuef (1000) (1000) Expenseg 18000 18000 Revenueh (2000) (2000) Hemphill Enterprise, Inc.i 3000 (3000) Income Statementj (2500) (2500) Expense For the month ending x 31, 200yk. (1800) (1800) Dividend 19700 300000 1000 66000 4000 34000 250000 90000 16700 Revenues: 390700 390700 Service Revenue 22,000 Less Expenses: Advertisement 1000 secretary wages 2500 Total Expenses 3,500 Net Income 18,500 Notice that Dividends Declared are not included in the Income Statement
  15. 15. Income StatementHemphill Enterprise, Inc.Income StatementFor the month ending x 31, 200yRevenues: Service Revenue 22,000Less Expenses: Advertisement 1000 secretary wages 2500Total Expenses 3,500Net Income 18,500
  16. 16. Return On Equity: OWNERS EQUITY Common Retained Stock Earning 90000 Net Income 4000 (1000)Beginning Stockholder’s 18000equity (2500) (1800) 18500 = 90000= 20.56% Income Statement Hemphill Enterprise, Inc. Income Statement For the month ending x 31, 200y Revenues: Service Revenue 22,000 Less Expenses: Advertisement 1000 secretary wages 2500 Total Expenses 3,500 Net Income 18,500
  17. 17. This organization has a good return (20.56%) comparatively alternate investment’s return (12%) for the sameperiod. So, The business use the investors’ money successfully.
  18. 18. TTTTTthank youBy:Mrinal Kanti DasRoll: 114452Department of accounting & information systemJagannath University , dhaka

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