Page 59 - Accounting Principles (A Business Perspective)

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30 Miscellaneous expenses incurred in operating the business from June 13 to date were USD 3,825 and were
paid in cash.
30 An order (contract) was received from a customer for repair services to be performed tomorrow, which will

be billed at USD 3,000.
a. Prepare a summary of transactions (see Part A of Exhibit 4). Include money columns for Cash, Accounts
Receivable, Trucks, Notes Payable, Capital Stock, and Retained Earnings. Determine balances after each
transaction to show that the basic accounting equation balances.
b. Prepare a balance sheet as of 2010 June 30.
Alternate problem C Following are summarized transaction data for Luxury Apartments, Inc., for the year
ending 2010 June 30. The company owns and operates an apartment building.

Rent revenue from building owned USD 150,000

Building repairs 2870

Building cleaning, labor cost 3185

Property taxes on the building 4000

Insurance on the building 1225

Commissions paid to rental agent 5000

Legal and accounting fees (for preparation of tenant 1260
leases)

Utilities expense 8225
Cost of new awnings (installed on June 30, will last 5000

10 years)

Of the USD 150,000 rent revenue, USD 5,000 was not collected in cash until 2010 July 5.
Prepare an income statement for the year ended 2010 June 30.
Alternate problem D The following data are for Central District Parking Corporation:
CENTRAL DISTRICT PARKING CORPORATION
Balance Sheet
2010 October 1
Assets
$
Cash
344,000
Accounts Receivable 18,000
$
Total assets
362,000
Liabilities and Stockholders' Equity
$
Accounts payable
94,000
Capital stock 232,000
Retained earnings 36,000
$
Total liabilities and stockholders' equity
362,000
The summarized transactions for October 2010 are as follows:
Oct.1 The accounts payable owed as of September 30 (USD 94,000) were paid.

Accounting Principles: A Business Perspective 60 A Global Text