2-A-2.^† Daniel Peavy owns and operates an architectural firm called Peavy Design. Table P2-A-2 summarizes the financial position of his business on April 30, 2015.

During May 2015, the following events occurred:

 

          Peavy received $12,000 as a gift and deposited the cash in the business bank account.

 

           He paid off the beginning balance of accounts payable.

 

          He performed services for a client and received cash of $1,100.

           He collected cash from a customer on account, $750.

          Peavy purchased supplies on account, $720.

 

         He consulted on the interior design of a major office building and billed the client for services rendered, $5,000.

 

          He invested personal cash of $1,700 in the business.

 

           He recorded the following business expenses for the month:

 

          Paid office rent, $1,200.

          Paid advertising, $660.

 

         Peavy sold supplies to another interior designer for $80 cash, which was the cost of the supplies.

         He withdrew cash of $4,000 for personal use.

 

Required

 

             Analyze the effects of the preceding transactions on the accounting equation of Peavy Design. Adapt the format of Figure 2-A-1.

 

 

 

ABLE P2-A-2     Data for Problem 2-A-2

 

=          Prepare the income statement of Peavy Design for the month ended May 31, 2015. List expenses in decreasing order by amount.

 

=         Prepare the balance sheet of Peavy Design at May 31, 2015.

 

Alpha Geek

(8)

Status NEW Posted 19 Jun 2017 06:06 PM My Price 14.00

-----------

Attachments

1497896225-1382356_1_636330914127659704_s1.jpg

1497896229-1382356_2_636330914127659704_s2.jpg

1497896234-1382356_3_636330914127659704_s3.jpg

1497896238-1382356_4_636330914127659704_s4.jpg

1497896243-1382356_5_636330914127659704_s5.jpg

Not Rated(0)

• Buy Answer