Homework

Samantha Murphy

Homework 3

Exercise 3-2

1. E

2. E

3. NR

4. R

5. I

6. NR

7. E

8. I

Exercise 3-3

Assets = Liabilities + Stockholders' Equity

1. NE NE NE

2. I NE I

3. I NE I

4. D D NE

5. NE NE NE

6. I I NE

7. D NE D

8. D NE D

9. I NE I

Problem 3-2

1. Just Rolling Along Inc. Transactions for the month of May 2014

Assets = Liabilities + Stockholders’ Equity

Accounts Accounts Capital Retained

Date Cash Receivable Equipment Supplies Payable Stock Earnings

5/1 $ 18,000 $18,000

5/1 $ 3,000 $ 3,000

Bal. $ 18,000 $ 3,000 $ 3,000 $ 18,000

5/5 –15 $ –15

Bal. $ 17,985 $ 3,000 $ 3,000 $ 18,000 $ (15)

5/9 –4,400 4,400

Bal. $ 13,585 $ 7,400 $ 3,000 $ 18,000 $ (15)

5/10 $ 100 100

Bal. $ 13,585 $ 7,400 $ 100 $ 3,100 $ 18,000 $ (15)

5/15 –125 –125

Bal. $ 13,460 $ 7,400 $ 100 $ 3,100 $ 18,000 $ (140)

5/17 1,800 1,800

Bal. $ 15,260 $ 7,400 $ 100 $ 3,100 $ 18,000 $ 1,660

5/24 $ 1,200 1,200

Bal. $ 15,260 $ 1,200 $ 7,400 $ 100 $ 3,100 $ 18,000 $ 2,860

5/29 600 –600

Bal. $ 15,860 $ 600 $ 7,400 $ 100 $ 3,100 $ 18,000 $ 2,860

5/30 3,000 3,000

Bal. $ 18,860 $ 600 $ 7,400 $ 100 $ 3,100 $ 18,000 $ 5,860

5/30 –160 –160

Bal. $ 18,700 $ 600 $ 7,400 $ 100 $ 3,100 $ 18,000 $ 5,700

5/31 –3,000 –3,000

Bal. $ 15,700 $ 600 $ 7,400 $ 100 $ 100 $ 18,000 $ 5,700

Total Assets: $23,800 Total assets and

Stockholders Equity: $23,800

2 .

Just Rolling Along Inc.

Income Statement

For the month ended May 31, 2014

Revenues:

Rental fees* $ 4,800

Lessons 1,200 $ 6,000

Expenses:...