Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 2, Problem 2PA
Tom West is a land surveyor who operates a small surveying company, performing surveys for both residential and commercial clients. He has a staff of surveyors and engineers who are employed by the firm. For the year ending December 31, 2017, he reported these income and expenses. Using this information, construct an income statement to reflect his net income for 2017.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Tom West is a land surveyor who operates a small surveying company, performing surveys for both residential and commercial clients. He has a staff of surveyors and engineers who are employed by the firm. For the year ending December 31, 2017, he reported the following income and expenses.
Service Revenue
$840,000
Surveyor Salary
124,000
Supplies and Materials
32,000
Utilities
15,000
Office Rent
23,000
Administrative Expenses
105,000
Using this information, construct an income statement to reflect his net income for 2017.
Tom West
Income Statement
For Year Ending 2017
Service Revenue
$fill in the blank 2
$fill in the blank 4
fill in the blank 6
fill in the blank 8
fill in the blank 10
fill in the blank 12
fill in the blank 14
$fill in the blank 16
during 2017, Regina, a sole proprietor, had the following income and expenses from herhome jewelry business. Regina is also employed as an office assistant at a local business.
W-2 wages from employer$28,000
Proceeds from jewelry sales15,000
Supplies for jewelry5,000
Travel for jewelry1,400
Charitable contributions to church3,000
a.What income or loss should be reported on Schedule C?
b.What is Regina's AGI?
How would i compute if she had a net income or net loss?
Connie Young , an architect, opened a office on October 1, 2019. During the month, she completed the following transactions connected with her personal practice:
a. Transferred cash from a personal bank account to an account to be used for the business, $36,000.
b. Paid October rent for the office and workroom, $2,400.
c. Purchased used automobile for $32,800 and, paying $7,800 cash and giving a note payable for the remainder.
d. Purchased office and computer equipment on account, $9,000.
e. Paid cash for supplies, $2,150.
f. Paid cash for annual insurance policies, $4,000.
g. Received cash from client for plans delivered, $12,200.
h. Paid cash for miscellaneous expenses, $815.
i. Paid cash to creditors on account, $4,500/
j. Paid $5,000 on note payable.
k. Received invoice for blueprint services, due in Novembre, $2,890.
l. Recorded fees earned on plans delivered, payment to be received in November, $18,300.
m. Paid salary of…
Chapter 2 Solutions
Principles of Accounting Volume 2
Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Conversion costs include all of the following...Ch. 2 - Which of the following is not considered a product...Ch. 2 - Fixed costs are expenses that...Ch. 2 - Variable costs are expenses that...
Ch. 2 - Total costs for ABC Distributing are $250,000 when...Ch. 2 - Which of the following would not be classified as...Ch. 2 - Which of the following are prime costs? A....Ch. 2 - Which of the following statements is true...Ch. 2 - The high-low method and least-squares regression...Ch. 2 - Which of the following methods of cost estimation...Ch. 2 - In the cost equation Y=a+bx, Y represents which of...Ch. 2 - A scatter graph is used to test the assumption...Ch. 2 - Identify the three primary classifications of...Ch. 2 - Explain how the income statement of a...Ch. 2 - Walsh & Coggins, a professional accounting firm,...Ch. 2 - Lizzys is a retail clothing store, specializing in...Ch. 2 - Identify and describe the three types of product...Ch. 2 - Explain the difference between a period cost and a...Ch. 2 - Explain the concept of relevant range and how it...Ch. 2 - Explain the differences among fixed costs,...Ch. 2 - Explain the difference between prime costs and...Ch. 2 - Explain how a scatter graph is used to identify...Ch. 2 - Explain the components of the total cost equation...Ch. 2 - Explain how the high-low method is used for cost...Ch. 2 - Magio Company manufactures kitchen equipment used...Ch. 2 - Park and West, LLC, provides consulting services...Ch. 2 - Canine Couture is a specialty dog clothing...Ch. 2 - Hicks Contracting collects and analyzes cost data...Ch. 2 - Rose Company has a relevant range of production...Ch. 2 - Carr Company provides human resource consulting...Ch. 2 - Western Trucking operates a fleet of delivery...Ch. 2 - Suppose that a company has fixed costs of $18 per...Ch. 2 - The cost data for Evencoat Paint for the year 2019...Ch. 2 - This cost data from Hickory Furniture is for the...Ch. 2 - Markson and Sons leases a copy machine with terms...Ch. 2 - Markson and Sons leases a copy machine with terms...Ch. 2 - Winterfell Products manufactures electrical...Ch. 2 - CPK ** Associates is a mid-size legal firm,...Ch. 2 - Flip or Flop is a retail shop selling a wide...Ch. 2 - Roper Furniture manufactures office furniture and...Ch. 2 - Baxter Company has a relevant range of production...Ch. 2 - Sanchez & Vukmin, LLP, is a full-service...Ch. 2 - Case Airlines provides charter airline services....Ch. 2 - Suppose that a company has fixed costs of $11 per...Ch. 2 - The cost data for BC Billing Solutions for the...Ch. 2 - This cost data from Hickory Furniture is for the...Ch. 2 - Able Transport operates a tour bus that they lease...Ch. 2 - Able Transport operates a tour bus that they lease...Ch. 2 - Ballentine Manufacturing produces and sells...Ch. 2 - Tom West is a land surveyor who operates a small...Ch. 2 - Just Beachy is a retail business located on the...Ch. 2 - Listed as follows are various costs found in...Ch. 2 - Wachowski Company reported these cost data for the...Ch. 2 - Carolina Yachts builds custom yachts in its...Ch. 2 - Hicks Products produces and sells patio furniture...Ch. 2 - Conner ** Scheer, Attorneys at Law, provide a wide...Ch. 2 - Puzzles, Pranks ** Games is a retail business...Ch. 2 - Pocket Umbrella, Inc. is considering producing a...Ch. 2 - Using the costs listed in the previous problem,...Ch. 2 - Gadell Farms produces venison sausage that is...Ch. 2 - In a team of two or three students, interview the...Ch. 2 - This list contains costs that various...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Horizontal analysis(Learning Objective 2)15-20 min. What were the dollar and percentage changes in Fesslers Fin...
Financial Accounting, Student Value Edition (5th Edition)
Trade Notes Payables. On February 1, Seville Sales, Inc. purchased Inventory costing 450,000 using a 6-month tr...
Intermediate Accounting (2nd Edition)
What is an internai change order and how is it used?
Construction Accounting And Financial Management (4th Edition)
Small Business Analysis Purpose: To help you understand the importance of cash flows in the operation of a smal...
Financial Accounting, Student Value Edition (4th Edition)
the relationship between the net income and the average common equity that are invested in the company. Use the...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of 560...
Financial Accounting (11th Edition)
Knowledge Booster
Similar questions
- On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from his personal bank account to a new account to start a new business, $40,000. Paid rent on office for the month, $6,000. Purchased supplies on account, $3,200. Paid creditor on account, $1,750. Earned fees, receiving cash, $18,250. Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420. Paid office salaries, $5,000. Determined that the cost of supplies used was $1,400. Withdrew cash for personal use, $2,000. Instructions Journalize entries for transactions (1) through (9), using the following account titles: Cash; Supplies; Accounts Payable; Capital; Drawing; Fees revenues; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. (Explanations may be omitted). Prepare T accounts, using the account titles in (1). Post the journal…arrow_forwardOn August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month: Investment from owner in exchange for common stock, $30,000. Paid rent on office and equipment for the month, $3,250. Purchased supplies on account, $2,150. Paid creditor on account, $875. Earned sales commissions, receiving cash, $14,440. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650. Paid office salaries, $3,000. Determined that the cost of supplies used was $1,300. Paid Cash Dividends, $2,500. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Common Stock; Dividends; Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing…arrow_forward2. Jasper is a lawyer who requires that his clients pay him in advance of legal services being rendered. Jasper routinely credits Legal Service Revenue when his clients pay him in advance. During the month of June 2015, Jasper collected P288,000 in advance fees and completed 75% of the work related to these fees. At what amount should the Legal Service Revenue be presented in the June 2014 income statement of Jasper?arrow_forward
- On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $18,000. Paid rent on office and equipment for the month, $3,370. Purchased supplies on account, $990. Paid creditor on account, $370 Earned fees, receiving cash, $15,300. Paid automobile expenses (including rental charge) for month, $930, and miscellaneous expenses, $630. Paid office salaries, $1,960. Determined that the cost of supplies used was $550. Withdrew cash for personal use, $900\ 4. As a result of the January transactions (a-i), determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for January. 5. Determine the total increase or decrease in owner's equity for January.arrow_forwardFauzana owns a business that makes and sells pets During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. a. Clay for making the pets toys. b. Wages of sales staff c. Purchase of potters wheel for use in the business d. Installation costs for the potters wheel e. Wages of staff operating the potters wheel f. Redecoration of store room g. Payment of extra wages to own staff for fitting the alarm and cctv h. Payment of architect fees for designing the proposed new shop i. Purchase of new telephone system for the businessarrow_forwardOn January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $40,000. Paid rent on office and equipment for the month, $6,000. Purchased supplies on account, $3,200. Paid creditor on account, $1,750. Earned fees, receiving cash, $18,250. Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420. Paid office salaries, $5,000. Determined that the cost of supplies used was $1,400. Withdrew cash for personal use, $2,000. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Sharon Matthews, Capital; Sharon Matthews, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted. Prepare T…arrow_forward
- Ray Agustin, the owner of a massage spa, has the following account balances as of January 1, 2019 as well as transactions and expenses for January. Salaries payable – P12,300 Agustin, Capital – P127,300 Investments – P292,294 Supplies expense – P3,750 Building – P325,250 Transportation – P7,200 Service Income – P53,676 Utilities Expense – P4,300 Equipment – P72,500 Office Supplies – P61,300 Taxes payable – P10,210 Licenses – P7,100 Withdrawals – P17,000 Accounts payable – P9,320 Cash – P6,700 What is the total amount of Ray’s total assets? How much is Ray’s capital for February 1, 2019? What is the total amount of Vince’s expenses? How much is the revenue generated by Ray?arrow_forwardOn January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $20,000. Paid rent on office and equipment for the month, $3,700. Purchased supplies on account, $1,090. Paid creditor on account, $400. Earned fees, receiving cash, $16,800. Paid automobile expenses (including rental charge) for month, $1,020, and miscellaneous expenses, $690. Paid office salaries, $2,150. Determined that the cost of supplies used was $600. Withdrew cash for personal use, $990. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances (when required), after all posting is complete, for all accounts having two or more debits or credits. 3. Prepare an unadjusted trial balance…arrow_forwardAmara is a sole proprietor who operates her business using the cash method of accounting and a calendar year. Based on the following list, how much income will be reported on her 2023 Schedule C? $10,000 check received January 4, 2024, for a job completed December 20, 2021. $15,000 check received December 29, 2023, for a job completed December 28, 2022, deposited January 5, 2024. $9,500 balance due for work that Amara performed in June 2023. Amara took her client to small claims court in December 2023, but did not receive any satisfaction. 1) $9.500 2) $15,000 3) $19,500 4) $25,000arrow_forward
- Conner ** Scheer, Attorneys at Law, provide a wide range of legal services for their clients. They employ several paralegal and administrative support staff in order to provide high-quality legal services at competitive prices. For the year ending December 31, 2017, the firm reported these income and expenses. Using this information, construct an income statement to reflect the firm’s net income for 2017.arrow_forwardMike purchased furniture for $8,400 and received an invoice dated February 5, 2017, with terms 2.5/10, n/30. He made a partial payment of $3,600 on February 10, 2017, and the balance on February 20, 2017. What was the balance?arrow_forwardOn August 1, 2019, Rafael Masey established Planet Realty, which completed the following transactions during the month: Rafael Masey transferred cash from a personal bank account to an account to be used for the business, $17,500. Purchased supplies on account, $2,300. Earned fees, receiving cash, $13,300. Paid rent on office and equipment for the month, $3,000. Paid creditor on account, $1,150. Withdrew cash for personal use, $1,800. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400. Paid office salaries, $2,800. Determined that the cost of supplies used was $1,050. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Rafael Masey, Capital; Rafael Masey, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Journal entry explanations may be omitted. Prepare T…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College