Question

Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows Cash $10,000 Accounts Receivable $20,000 Supplies on Hand $15,000 Prepaid Insurance $5,000 Notes Payable $10,000 Accounts Payable $10,000 Capital Stock $25,000 Retained Earnings $5,000 During August the following transactions occurred: Aug. 6 Rendered services for various clients on account for $10,890. Aug. 13 Received $2,500 on account from clients. Aug. 18 Paid $4,080 on accounts payable. Aug. 18 Paid miscellaneous expenses, $1,200. Aug. 31 Determined that $4,080 insurance premiums expired during August Aug. 31 Determined that supplies on hand at August 31 amounted to $10,890 Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $ Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $ Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ 1500 Required 4: If these were all the transactions, what is the amount of total assets at the end of the period? $ Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? $ 15920 Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $ 31500 4110 920

          Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows
Cash
$10,000
Accounts Receivable
$20,000
Supplies on Hand
$15,000
Prepaid Insurance
$5,000
Notes Payable
$10,000
Accounts Payable
$10,000
Capital Stock
$25,000
Retained Earnings
$5,000
During August the following transactions occurred:
Aug. 6 Rendered services for various clients on account for $10,890.
Aug. 13 Received $2,500 on account from clients.
Aug. 18 Paid $4,080 on accounts payable.
Aug. 18 Paid miscellaneous expenses, $1,200.
Aug. 31 Determined that $4,080 insurance premiums expired during August
Aug. 31 Determined that supplies on hand at August 31 amounted to $10,890
Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? $
Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet? $
Required 3: If these were all the transactions, what is the Net Income (loss) for the period? $ 1500
Required 4: If these were all the transactions, what is the amount of total assets at the end of the period? $
Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? $ 15920
Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? $ 31500
4110
920

Fargo Company operates a pet grooming service. On August 1 of the current year, the firm's account balances were as follows
Cash
10,000
Accounts Receivable20,000
Supplies on Hand
15,000
Prepaid Insurance5,000
Notes Payable
10,000
Accounts Payable10,000
Capital Stock
25,000
Retained Earnings5,000
During August the following transactions occurred:
Aug. 6 Rendered services for various clients on account for 10,890.
Aug. 13 Received2,500 on account from clients.
Aug. 18 Paid 4,080 on accounts payable.
Aug. 18 Paid miscellaneous expenses,1,200.
Aug. 31 Determined that 4,080 insurance premiums expired during August
Aug. 31 Determined that supplies on hand at August 31 amounted to10,890
Required 1: What is the proper balance of Supplies Expense showing on August 31st income statement? Required 2: What is the proper amount of Prepaid Insurance showing on August 31st balance sheet?
Required 3: If these were all the transactions, what is the Net Income (loss) for the period? 1500
Required 4: If these were all the transactions, what is the amount of total assets at the end of the period?
Required 5: If these were all the transactions, what is the amount of total liabilities at the end of the period? 15920
Required 6: If these were all the transactions, what is the amount of total owner's equity at the end of the period? 31500
4110
920

Added by Cynthia F.

Question

Please give Ace some feedback