46PGA_2a Annette Pachelo recently opened ... [FREE SOLUTION]

Annette Pachelo recently opened her own law office on March 1, which she operates as a corporation. The name of the new entity is Annette Pachelo, Attorney. Pachelo experienced the following events during the organizing phase of the new business and its first month of operation, March 2018. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business. Mar. 1 Sold personal investment in Amazon stock, which she had owned for several years, receiving $35,000 cash. 2 Deposited the $35,000 cash from the sale of the Amazon stock in her personal bank account. 3 Deposited $73,000 cash in a new business bank account titled Annette Pachelo, Attorney. The business issued common stock to Pachelo. 5 Paid $700 cash for ink cartridges for the printer. 7 Purchased computer for the law office, agreeing to pay the account, $5,000, within three months. 9 Received $2,800 cash from customers for services rendered. 15 Received bill from The Lawyer for magazine subscription, $400. (Use Miscellaneous Expense account.) 23 Finished court hearings on behalf of a client and submitted a bill for legal services, $10,000, on account. 28 Paid bill from The Lawyer. 30 Paid utilities, $1,200. 31 Received $3,300 cash from clients billed on March 23. 31 Cash dividends of $5,500 were paid to stockholders. Requirements 2. Prepare the following financial statements: d. Statement of cash flows

Centerpiece Arrangements has just completed operations for the year ended December 31, 2018. This is the third year of operations for the company. The following data have been assembled for the business: Insurance Expense $ 4,500 Salaries Expense $ 46,000 Service Revenue 70,000 Accounts Payable 17,600 Utilities Expense 1,400 Office Supplies 1,700 Rent Expense 16,000 Dividends 4,800 Common Stock 9,000 Accounts Receivable 8,000 Cash 7,200 Equipment 12,100 Retained Earnings, January 1, 2018 5,100

Preparing the balance sheet

Prepare the balance sheet of Centerpiece Arrangements as of December 31, 2018.

Which concept states that accounting information should be complete, neutral, and free from material error?

Using the information provided, analyze the effects of Lawlor Lawn Service’s transactions on the accounting equation. May 1 Received $1,700 and issued common stock. May 3 Purchased a mower on account, $1,440. May 5 Performed lawn services for client on account, $200. May 17 Paid $60 cash for gas used in mower. May 28 Paid cash dividends of $300.

Presented here are the accounts of Pembroke Bookkeeping Company for the year ended December 31, 2018: Land $ 10,000 Common Stock $ 29,000 Notes Payable 31,000 Accounts Payable 7,000 Property Tax Expense 3,100 Accounts Receivable 1,200 Dividends 28,000 Advertising Expense 12,000 Rent Expense 7,000 Building 147,400 Salaries Expense 64,000 Cash 2,800 Salaries Payable 800 Equipment 15,000 Service Revenue 192,000 Insurance Expense 1,700 Office Supplies 12,000 Interest Expense 6,600 Retained Earnings, Dec. 31, 2017 51,000 Requirements 1. Prepare Pembroke Bookkeeping Company’s income statement. 2. Prepare the statement of retained earnings. 3. Prepare the balance sheet

Annette Pachelo, Attorney
Income Statement
Month Ended March 31, 2018
Revenues
Service Revenue		$12,800
Expenses
Miscellaneous Expense	400
Utilities Expense	1,200
Total Expenses		(1,600)
Net Income		$11,200

Short Answer

Step by step solution

Calculation of net income

Explanation of net income

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Introduction to Business

Business Case Studies

Organizational Behavior

Managerial Economics

Corporate Finance

Managers

Study anywhere. Anytime. Across all devices.