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work sheet poa i for GLC UG.docx - GREAT LAND COLLEGE...

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GREAT LAND COLLEGE GREAT LAND COLLEGE Fundamentals of accounting I: work sheet Fundamentals of accounting I: work sheet1. A profit-making business operating as a separate legal entity and in which ownership is divided into shares of stock is known as a: A. proprietorshipB. partnership.C. service businessD. corporation. 2. The resources owned by a business are called: A. assets.B. liabilities.C. the accounting equation.D. owner’s equity. 3. A listing of a business entity’s assets, liabilities, and owner’s equity as of a specific date is: A. a balance sheet.B. an income statement. C. a statement of owner’s equity.D. a statement of cash flows. 4. If total assets increased $20,000 during a period and total liabilities increased $12,000 during the same period, the amount and direction (increase or decrease) of the change in owner’s equity for that period is: A. a $32,000 increase.C. an $8,000 increase. B. a $32,000 decrease.D. an $8,000 decrease. 5. If revenue was $45,000, expenses were $37,500, and the owner’s withdrawals were $10,000, the amount of net income or net loss would be: A. $45,000 net income.C. $37,500 net loss. B. $7,500 net income.D. $2,500 net loss.
Problems Problems 1.1.Mamo started a new business calledMamo started a new business calledOmo CompanyOmo Companyand completed the following transactions and completed the following transactions during November: during November: Nov.1 Mamo transferred 56,000 out of a personal savings bank account to a checking account in the Nov.1 Mamo transferred 56,000 out of a personal savings bank account to a checking account in the name of the business. name of the business. 1. Rented office space and paid cash for the month’s rent of 800 1. Rented office space and paid cash for the month’s rent of 800 3. Purchased electrical equipment for 14,000 by paying 3,200 and agreeing to pay the 3. Purchased electrical equipment for 14,000 by paying 3,200 and agreeing to pay the remaining balance in six months remaining balance in six months5.Purchased office supplies by paying 900 cash. 5.Purchased office supplies by paying 900 cash. 6. Completed electrical work and received 1,000 cash for doing the work.6. Completed electrical work and received 1,000 cash for doing the work.


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11. 11.Purchased 3,800 of office equipment on credit Purchased 3,800 of office equipment on credit 15.Completed electrical work on credit in the amount of 4,000 15.Completed electrical work on8 credit in the amount of 4,000 20. Paid for the office equipment purchased on Nov.9 20.Paid for the office equipment purchased on Nov.9 24. Billed a customer for electrical work completed 600 24. Billed a customer for electrical work completed 600 28. Received 4,000 for the work completed on Nov.15 28. Received 4,000 for the work completed on Nov.15 30. Paid salary of employees 1,200 30. Paid salary of employees 1,200 30. Paid the monthly utilities bill 440 30. Paid the monthly utilities bill 440 30. Withdrew 700 from the business for personal use 30. Withdrew 700 from the business for personal use Required: Required: a.a.Arrange the following asset, liability and owner’s equity titles in a table just like illustrated in Arrange the following asset, liability and owner’s equity titles in a table just like illustrated in this unit: Cash, Accounts Receivable, Office Supplies, Office Equipment, Electrical this unit: Cash, Accounts Receivable, Office Supplies, Office Equipment, ElectricalEquipment, Accounts Payable and Mamo Capital. Equipment, Accounts Payable and Mamo Capital. b. b.Use additions and subtractions to show the effect of each transaction on the items in the Use additions and subtractions to show the effect of each transaction on the items in theequation. Show new totals after each transaction. Next to each change in owners’ equity state equation. Show new totals after each transaction. Next to each change in owners’ equity state whether the change was caused by an investment, revenue,80 expense or withdrawal. whether the change was caused by an investment, revenue, expense or withdrawal. c. c.Prepare an income statement, a statement of owner’s equity, and a balance sheet Prepare an income statement, a statement of owner’s equity, and a balance sheet2.Guji​

Answer 1

Omo Company's accounting worksheet details transactions, analyzes effects, and presents financial statements for November.

Omo Company Accounting Worksheet

a. Table of Assets, Liabilities, and Owner's Equity:

| Account Title | Account Type |

| Cash | Asset |

| Accounts Receivable | Asset |

| Office Supplies | Asset |

| Office Equipment | Asset |

| Electrical Equipment | Asset |

| Accounts Payable | Liability |

| Mamo Capital | Owner's Equity |

b. Transaction Analysis:

Date | Transaction | Cash | Accounts Receivable | Office Supplies | Office Equipment | Electrical Equipment | Accounts Payable | Mamo Capital | Change | Cause

| Nov 1 | Invest | 56,000 | | | | | | 56,000 | Investment |

| Nov 1 | Rent Expense | 800 | | | | | | 800 | Expense |

| Nov 3 | Purchase | 3,200 | | | 14,000 | | 10,800 | 56,000 | Expense |

| Nov 5 | Purchase | 900 | | 900 | | | | 55,100 | Expense |

| Nov 6 | Service Revenue | 1,000 | 1,000 | | | | | 56,100 | Revenue |

| Nov 11 | Purchase | | | | 3,800 | | 3,800 | 52,300 | Expense |

| Nov 15 | Service Revenue | | 4,000 | | | | | 56,300 | Revenue |

| Nov 20 | Payment | | | | 3,800 | | 3,800 | 52,500 | Expense |

| Nov 24 | Service Revenue | | 600 | | | | | 53,100 | Revenue |

| Nov 28 | Receive | | 4,000 | | | | | 57,100 | Revenue |

| Nov 30 | Salary Expense | 1,200 | | | | | | 55,900 | Expense |

| Nov 30 | Utilities Expense | 440 | | | | | | 55,460 | Expense |

| Nov 30 | Withdrawal | 700 | | | | | | 54,760 | Withdrawal |

c. Financial Statements:

Income Statement:

| Revenue |

| Service Revenue | 5,600 |

| Total Revenue | 5,600 |

| Expenses |

| Rent Expense | 800 |

| Office Supplies Expense | 900 |

| Electrical Equipment Expense | 14,000 |

| Salary Expense | 1,200 |

| Utilities Expense | 440 |

| Total Expenses | 17,340 |

| Net Income | (11,740) |

Statement of Owner's Equity:

| Mamo Capital |

| Beginning Capital | 56,000 |

| Investments | 0 |

| Revenue | 5,600 |

| Expenses | (17,340) |

| Withdrawals | (700) |

| Ending Capital | 44,260 |

Balance Sheet:

| Assets |

| Cash | 7,220 |

| Accounts Receivable | 4,000 |

| Office Supplies | 800 |

| Office Equipment | 17,800 |

| Electrical Equipment | 14,000 |

| Total Assets | 44,820 |

| Liabilities |

| Accounts Payable | 3,800 |

| Total Liabilities | 3,800 |

| Owner's Equity |

| Mamo Capital | 44,260 |

| Total Equity | 44,260 |

| Total Liabilities & Equity | 48,060 |