Financial accounting Homework exam with workings

P1.1A (LO 4), AP Fredonia Repair Inc. was started on May 1. A summary of May transactions is presented as follows. Stockholders invested $10,000 cash in the business in exchange for common stock. Purchased equipment for $5,000 cash. Paid $400 cash for May office rent. Paid $300 cash for supplies. Incurred $250 of advertising costs in the Beacon News on account. Received $4,700 in cash from customers for repair service. Declared and paid a $700 cash dividend. Paid part-time employee salaries $1,000. Paid utility bills $140. Performed repair services worth $1,100 on account. Collected cash of $120 for services billed in transaction (10). Hint: b. Net income $4,010 Exam Question: P1-1A What is the amount of Total Assets of Fredonia Repair Inc.? A $12,540 B $13,560 – my answer C $13,670 D $16,930 My scratch work: P1- 1A FREDONIA REPAIR INC. Cash Accounts Receivable Supplie s Equipmen t Accounts Payable Common Stock Revenue s Expenses Dividends 1 10,000 10,000 2 (5,000) 5,000 3 (400) (400) 4 (300) 300 5 250 (250) 6 4,700 4,700 7 (700) (700) 8 (1,000) (1,000) 9 (140) (140) 10 1,100 1,100 11 120 (120) $ 7,280 $ 980 $ 300 $ 5,000 $ 250 $ 10,000 $ 5,800 $ (1,790) $ (700) Total Assets Total L&E Income Statement $ 13,560 $ 13,560 Revenue $ 5,800 Expenses $ (1,790) Net Income $ 4,010 P1.2A (LO 4, 5), AP On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred. Paid $2,900 cash for accounts payable due. Collected $1,300 of accounts receivable. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October. Declared and paid a $400 cash dividend. Paid salaries $1,700, rent for September $900, and advertising expense $200. Incurred utilities expense for month on account $170. Received $10,000 from Capital Bank on a 6-month note payable. Hint: a. Ending cash $15,900 b. Net income $4,330 Total assets $29,800 Exam Question: P1-2A What is the ending Retained Earnings for La Brava Veterinary Clinic? A $4,630 B $4,740 C $4,825 D $4,950 My scratch work: P1-2A LA BRAVA VETERINARY CLINIC Cash Accounts Receivabl e Supplies Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Revenues Expense s Dividends Bal. $ 9,000 $ 1,700 $ 600 $ 6,000 $ 3,600 $ 13,000 $ 700 1 (2,900) (2,900) 2 1,300 (1,300) 3 (800) 2,100 1,300 4 2,500 4,800 7,300 5 (400) (400) 6 (2,800) (2,800) 7 170 (170) 8 10,000 10,000 Total $ 15,900 $ 5,200 $ 600 $ 8,100 $ 10,000 $ 2,170 $ 13,000 $ 700 $ 7,300 $ (2,970) $ (400) Balance Sheet Retained Earnings Statement Income Statement Assets Beginning Retained Earnings $ 700 Revenues $ 7,300 Cash $ 15,900 Add: Net Income 4,330 Expenses (2,970) Accounts Receivable 5,200 Less: Dividends (400) Net Income $ 4,330 Supplies 600 Ending Retained Earnings $ 4,630 Equipment 8,100 Total Assets $ 29,800 Liabilities & Equity Notes Payable $ 10,000 Accounts Payable 2,170 Common Stock 13,000 Retained Earnings 4,630 Total Liabilities & Equity $ 29,800