For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of 1 July 2020, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: July 1. The following assets were received from Jolene Upton: cash, RM19,000; accounts receivable, RM22,300; supplies, RM3,800; and office equipment, RM8,900. There were no liabilities received. 1. Paid three months' rent on a lease rental contract, RM6,000. 2. Paid the premiums on property and casualty insurance policies, RM4,500. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, RM8,000. 5. Purchased additional office equipment on account from Office Necessities Co., RM5,100. 6. Received cash from clients on account, RM12,750. 10. Paid cash for a newspaper advertisement, RM500. 12. Paid Office Necessities Co. for part of the debt incurred on July 5, RM3,000. 12. Provided services on account for the period July 1–12, RM14,200. 14. Paid receptionist for two weeks' salary, RM1,500. 17. Received cash from cash clients for fees earned during the period July 1–17, RM10,400. 18. Paid cash for supplies, RM1,000. 20. Provided services on account for the period July 13–20, RM9,000. 24. Received cash from cash clients for fees earned for the period July 17–24, RM8,500. 26. Received cash from clients on account, RM12,000. 27. Paid receptionist for two weeks' salary, RM1,500. 29. Paid telephone bill for July, RM325. 31. Paid electricity bill for July, RM675. 31. Received cash from cash clients for fees earned for the period July 25–31, RM7,100. 31. Provided services on account for the remainder of July, RM5,500. 31. Jolene withdrew RM20,000 for personal use. Additional information: At the end of July, the following adjustment data were assembled: Insurance expired during July is RM375. Supplies on hand on July 31 are RM2,850. Depreciation of office equipment for July is RM400. Accrued receptionist salary on July 31 is RM140. Rent expired during July is RM2,000. Unearned fees on July 31 are RM3,000. 1.Prepare an income statement, a statement of owner's equity, and a balance sheet

For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of 1 July 2020, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: July 1. The following assets were received from Jolene Upton: cash, RM19,000; accounts receivable, RM22,300; supplies, RM3,800; and office equipment, RM8,900. There were no liabilities received. 1. Paid three months' rent on a lease rental contract, RM6,000. 2. Paid the premiums on property and casualty insurance policies, RM4,500. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, RM8,000. 5. Purchased additional office equipment on account from Office Necessities Co., RM5,100. 6. Received cash from clients on account, RM12,750. 10. Paid cash for a newspaper advertisement, RM500. 12. Paid Office Necessities Co. for part of the debt incurred on July 5, RM3,000. 12. Provided services on account for the period July 1–12, RM14,200. 14. Paid receptionist for two weeks' salary, RM1,500. 17. Received cash from cash clients for fees earned during the period July 1–17, RM10,400. 18. Paid cash for supplies, RM1,000. 20. Provided services on account for the period July 13–20, RM9,000. 24. Received cash from cash clients for fees earned for the period July 17–24, RM8,500. 26. Received cash from clients on account, RM12,000. 27. Paid receptionist for two weeks' salary, RM1,500. 29. Paid telephone bill for July, RM325. 31. Paid electricity bill for July, RM675. 31. Received cash from cash clients for fees earned for the period July 25–31, RM7,100. 31. Provided services on account for the remainder of July, RM5,500. 31. Jolene withdrew RM20,000 for personal use. Additional information: At the end of July, the following adjustment data were assembled: Insurance expired during July is RM375. Supplies on hand on July 31 are RM2,850. Depreciation of office equipment for July is RM400. Accrued receptionist salary on July 31 is RM140. Rent expired during July is RM2,000. Unearned fees on July 31 are RM3,000. 1.Prepare an income statement, a statement of owner's equity, and a balance sheet

Name: For the past several years, Jolene Upton has operated a part-time cons
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of 1 July 2020, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

100%

July 1.		The following assets were received from Jolene Upton: cash, RM19,000; accounts receivable, RM22,300; supplies, RM3,800; and office equipment, RM8,900. There were no liabilities received.
1.		Paid three months' rent on a lease rental contract, RM6,000.
2.		Paid the premiums on property and casualty insurance policies, RM4,500.
4.		Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, RM8,000.
5.		Purchased additional office equipment on account from Office Necessities Co., RM5,100.
6.		Received cash from clients on account, RM12,750.
10.		Paid cash for a newspaper advertisement, RM500.
12.		Paid Office Necessities Co. for part of the debt incurred on July 5, RM3,000.
12.		Provided services on account for the period July 1–12, RM14,200.
14.		Paid receptionist for two weeks' salary, RM1,500.
17.		Received cash from cash clients for fees earned during the period July 1–17, RM10,400.
18.		Paid cash for supplies, RM1,000.
20.		Provided services on account for the period July 13–20, RM9,000.
24.		Received cash from cash clients for fees earned for the period July 17–24, RM8,500.
26.		Received cash from clients on account, RM12,000.
27.		Paid receptionist for two weeks' salary, RM1,500.
29.		Paid telephone bill for July, RM325.
31.		Paid electricity bill for July, RM675.
31.		Received cash from cash clients for fees earned for the period July 25–31, RM7,100.
31.		Provided services on account for the remainder of July, RM5,500.
31.		Jolene withdrew RM20,000 for personal use.

Additional information:

At the end of July, the following adjustment data were assembled:

Insurance expired during July is RM375.
Supplies on hand on July 31 are RM2,850.
Depreciation of office equipment for July is RM400.
Accrued receptionist salary on July 31 is RM140.
Rent expired during July is RM2,000.
Unearned fees on July 31 are RM3,000.

1.Prepare an income statement, a statement of owner's equity, and a balance sheet .

Expert Solution

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.