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 John Davidson started her practice as a registered intenor designer on February 3 of the current year

Accounting Dec 03, 2020

 John Davidson started her practice as a registered intenor designer on February 3 of the current year. During the first month of operations, the business completed the following transactions -Feb 3 Davidson contributed $81000 cash and office furniture with a fair market value of S 5500 from her personal bank account to a business account titled John Davidson Dietician Feb 7 Purchased supplies on account, 5750 -Feb 11 Performed services for a hospital 52100 received 5000 immediately in cash and submitted a bill for the rest of the amount 51200 -Feb 15 Paid secretary's salary, 5800 -Feb 20 Received partial collection from client on account 5000 (issued on Feb 11) -Feb 22 Davidson purchased a computer for himself at a cost of $2,000 paid cash from personal funds - Feb The Business received $ 1500 for interior services to be performed next month -Feb 25 Borrowed $14000 from the bank for business use 1) Refer to case 1 After all of the transactions. How much is the Debitor Credit balance in the trial balance? write your result in to the answer box below! 2) Refette case 1 After all of the transactions, how much is the Total Assets? write your result in to the answer box below) Answer 3) Retar to case 1After all of the transactions, How much is the AP balance in the trial balance? write your result in to the answer box below) Answer: L + Refer to case 1A er all of the transactions. How much is the cash balance at the end of the period? write your into the answer box below) Anne 5) Refer to case 1After all of the transactions. How much is the Revenue balance? ee your rent into the answer box below) Answer D Refer to case 1er all of the transactions, How much is the Net Income? Det your return to the answer box below) Reler to case 1ter all of the transactions, How much is the Total Liabilities? fente your other box below

Expert Solution

Question Number Answer Working
1)    230,100  
2)    228,550 (5500+222450+600)
3)        1,500  
4)    222,450  
5)        2,100  
6)            550 (2100-750-800)
7)    141,500 (1500+140000)

Working Notes/Supportings.

  Trial Balance
Nature Particulars Debit ($) Credit($)
Capital Capital        86,500
Asset Furniture                             5,500  
Asset Cash                        222,450  
Expense Supplies                                750  
Expense Salary                                800  
Income Revenue          2,100
Asset Debtors                                600  
Liability Accounts payable          1,500
Liability Loan/Borrowings   140,000
  TOTAL                        230,100 230,100

For understanding Trial Balance understand the below supporting.

Transaction effecting ledgers are shown in tabular format for proper understanding

Example on 3rd Feb- Furniture Dr. 5500

Cash Dr. 81000

To Capital 86500

  Equity Asset Asset Expense Expense Income Asset Liability Liability
  Cr Dr Dr Dr Dr Cr Dr Cr Cr
  Capital Furniture Cash Supplies Salary Revenue Debtors Accounts Payable Loan
3-Feb 86500 5500 81000            
7-Feb     -750 750          
11-Feb     900     2100 1200    
15-Feb     -800   800        
20-Feb     600       -600    
22-Feb                  
23-Feb     1500         1500  
25-Feb     140000           140000
TOTAL 86500 5500 222450 750 800 2100 600 1500 140000

 

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