Chapter 2 HW

An organization that has two or more owners who are legally responsible for the debts and taxes of the business is a:

partnership

TRANSACTIONS Paid $2,100 for utilities. Performed services for $10,500 on account. Received $6,500 from charge account customers. Paid salaries of $4,500 to employees. Paid $8,000 to a creditor on account. Owner invested $90,000 in the business. Purchased $26,700 of supplies on account. Purchased equipment for $21,000 cash. Paid $6,000 for rent (in advance). Performed services for $7,800 cash. Indicate the impact of each of the transactions on the fundamental accounting equation (Assets = Liabil

585

Just before Ward Laboratories opened for business, Pamela Ward, the owner, had the following assets and liabilities. Cash $40,700 Laboratory equipment $75,800 Laboratory supplies $7,000 Loan payable $15,300 Accounts payable $9,925 Determine the totals that would appear in the firm's fundamental accounting equation (Assets = Liabilities + Owner's Equity).

Assets $ 123,500 Liabilities $25,225 Owner's equity $ 98,275

Technology Mart had the following revenue and expenses during the month ended July 31. Fees for computer repairs$ 46,800Advertising expense8,100Salaries expense20,500Telephone expense1,080Fees for printer repairs6,730Utilities expense1,710 Did the firm earn a net income or incur a net loss for the period? What was the amount?

Net Income = $22,140

On December 1, Vincent Nguyen opened a speech and hearing clinic. During December, his firm had the following transactions involving revenue and expenses. Paid $3,100 for advertising. Provided services for $10,400 in cash. Paid $960 for telephone service. Paid salaries of $2,600 to employees. Provided services for $3,000 on credit. Paid $900 for office cleaning service. Did the firm earn a net income or incur a net loss for the period? What was the amount?

Net incomes = $5,840