Student Name: Class: Problem 01-07A GRAHAM COMPANY

Date May 1 1 3 5 8 12 15 20 22 25 26 27 28 30 30 31 $

Cash $40,000 5,100

Assets = Accounts Receivable

Office Equipment 1,890

Liabilities Accounts Payable 1,890

+ H. Graham Capital 40,000

Equity H. Graham Withdrawals Revenues Expenses

2,500 (750) (750) 2,500 3,200 (1,890) (80) (750) (300) (280) (1,400) (2,200) 42,780 $
Correct!

5,400 2,500 (750) (750)

(2,500) 3,200 (3,200) (1,890) 80

3,200

(80) (750) (300) (280) 1,400 (2,200) (5,110)

Correct!

Correct!

1,890
Correct!

$
Correct!

80

40,000
Correct!

(1,400) $
Correct!

11,100
Correct!

GRAHAM COMPANY Income Statement For Month Ended May 31 Revenues Consulting services revenue Expenses Rent expense Salaries expense Cleaning expense Telephone expense Utilities expense Advertising expense Total expenses Net income

$ 2,200 1,500 750 300 280 80 $

11,100

(5,110) 5,990
Correct!

GRAHAM COMPANY Statement of Owner's Equity For the Month Ended May 31 H. Graham, Capital, May 1 Add: Investment by Owner Net income Less: Withdrawals by owner H. Graham, Capital, May 31

40,000 5,990 $45,990 (1,400) $44,590

Correct!

Student Name: Class: Problem 01-07A GRAHAM COMPANY Balance Sheet May 31 Assets Cash Office equipment $ 42,780 1,890 Accounts payable Owner's Equity H. Graham, Capital Total liabilities and equity Liabilities $ 80

Total assets

44,670
Correct!

44,590 $44,670
Correct!

GRAHAM COMPANY Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash received from customers Cash paid for rent Cash paid for cleaning Cash paid for telephone Cash paid for utilities Cash paid to employees Net cash provided by operating activities Cash flows from investing activities Purchase of equipment Net cash used by investing activities Cash flows from financing activities Investments by owner Withdrawals by owner Net cash provided by financing activities Net increase in cash Cash balance, May 1 Cash balance, May 31

11,100 (2,200) (750) (300) (280) (1,500) $ 6,070

- Correct!

(1,890) (1,890)
- Correct!

40,000 (1,400) 38,600 $ $ 42,780 42,780

Correct! - Correct!

Given Data P01-07A: THE GRAHAM CO. Transactions May 1 1 3 5 8 12 15 20 22 25 26 27 28 30 30 31

Cash invested in company Cash paid for May rent Office equipment purchased on credit Cash paid for May cleaning services Cash collected for services provided Provided services on credit Cash paid for assistant's salary (1st half of May) Cash received for services provided May 12 Provided services on credit Cash received for services provided May 22 Cash paid for office equipment purchased May 3 Purchased May advertising, payment due June 1 Cash paid for assistant's salary (2nd half of May) Cash paid for May telephone bill Cash paid for May utilities Owner withdrew cash for personal use

$ 40,000 2,200 1,890 750 5,400 2,500 750 2,500 3,200 3,200 1,890 80 750 300 280 1,400

Check figures: (2) Ending balances Cash Expenses (3) Net income Total assets

$ 42,780 $ 5,110 $ 5,990 $ 44,670

Student Name: Class: Problem 01-08A

ANDER ELECTRIC Assets Accounts Date Dec. 1 $ 2 Bal. 3 Bal. 5 Bal. 6 Bal. 8 Bal. 15 Bal. 18 Bal. 20 Bal. 24 Bal. 28 Bal. 29 Bal. 30 Bal. 31 Bal. $ Correct! 57,070 5,000 62,070 (1,400) 60,670 (540) 60,130 (950) 59,180 $ Correct! 900 $ 1,150 Correct! $ 2,530 Correct! $ 13,000 Correct! $ 8,550 Correct! $ 65,000 Correct! $ Correct! (950) $ 7,100 Correct! $ (2,940) Correct! 900 1,150 900 1,150 59,600 (2,530) 57,070 5,000 900 5,900 (5,000) 900 1,150 1,150 1,150 5,000 59,600 59,600 $ 5,000 5,000 800 350 1,150 800 Cash 65,000 (1,000) 64,000 (4,800) 59,200 (800) 58,400 1,200 59,600 800 $ 800 800 Receivable Office Supplies Office Equip. Elect. Equip. = Liabilities Accounts Payable H. Ander Capital + Equity H. Ander Withdrawals Revenues Expenses

Student Name: Class: Problem 01-08A ANDER ELECTRIC Income Statement For the Month Ended December 31 Revenues Electrical fees earned Expenses Rent expense Salaries expense Utilities expense Total expenses Net income

$ $ (1,000) (1,400) (540) $

7,100

(2,940) 4,160
Correct!

ANDER ELECTRIC Statement of Owner's Equity For the Month Ended December 31 H. Ander, Capital, December 1 Plus: Owner investments Net income Total Less: Withdrawals by owner H. Ander, Capital, December 31

65,000 4,160 69,160 (950) 68,210

Correct!

ANDER ELECTRIC Balance Sheet December 31 Assets Cash Accounts receivable Office supplies Office equipment Electrical equipment Total assets Liabilities Accounts payable

$59,180 900 1,150 2,530 13,000 $76,760

Correct!

8,550

Owner's Equity H. Ander, Capital Total liabilities and equity

68,210 76,760
Correct!

Student Name: Class: Problem 01-08A ANDER ELECTRIC Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers Cash paid for rent Cash paid for supplies Cash paid for utilities Cash paid to employees Net cash provided by operating activities Cash flows from investing activities Purchase of office equipment Purchase of electrical equipment Net cash used by investing activities Cash flows from financing activities Investments by owner Withdrawals by owner Net cash provided by financing activities Net increase in cash Cash balance, December 1 Cash balance, December 31 $ $ 59,180 59,180
Correct!

- Try again!

(2,530) (4,800) (7,330) - Correct!

- Try again!

Part 4:

Assume that the owner investment transaction on December 1 was $49,000 cash instead of $65,000 and that Ander Electric obtained another $16,000 in cash by borrowing it from the bank. Explain the effect of this change on total assets, total liabilities, and total equity.

Given Data P01-08A: ANDER ELECTRIC Transactions May 1 Transferred into business account 2 Cash paid for month's rent 3 Total paid for electrical equipment Cash paid at time of purchase 5 Cash paid for office supplies 6 Amount collected for work completed 8 Office equipment purchased on credit 15 Completed work on credit 18 Office supplies purchased on credit 20 Cash paid for office equipment purchased December 8 24 Billed client for work completed 28 Received for December 15th work 29 Paid assistant's salary 30 Paid monthly utility bill 31 Withdrew for personal use Check figures: (2) Ending balances Cash Accounts Payable (3) Net income Total assets

$ 65,000 1,000 13,000 4,800 800 1,200 2,530 5,000 350 2,530 900 5,000 1,400 540 950

$ 59,180 $ 8,550 $ 4,160 $ 76,760