Accounting problem...please help me out!!!?

Question

1. Invested $10.000 cash
2. Purchased equipment for $5000 cash
3. Paid $400 for rent
4. paid $500 cash for supplies
5. Incurred $250 of adv. costs on account
6. received $5100 in cash from customers for repair service
7. Withdrew $1000 cash for personal use
8. paid part time employee salaries $2000
9. paid utility bills $140
10. provided repair service on account to customers $750
11. collected cash of $120 for services billed in transaction (10)

a) wht is the ending capital??! how to calculate??
b) wht is the net income??? how to calculate??

i dont know how calculate~~please helpppp me

nonono....the ending capital is $12.060 and the net income is $3.060, but the problem is i dont know how to get this answer!!

Answer 1

a) wht is the ending capital?
Ending capital :
Initial investment 10,000
Withdrew for personal use (1,000)
Net income 3,060 (see below)
Ending capital : $12,060

b) wht is the net income?
Net income:
Revenues
repair service $5100
repair service $750
Less -
Expenses
rent $400
adv. costs $250
part time employee salaries $2000
utility bills $140
Net income : $3,060

Answer 2

This involves setting up accounts for these transactions, and doing an income statement. Assets=Liabilities+Proprietorship. Assets- Cash, Equipment, Supplies, Pre-paid advertising, acct receiveable. Liabilities- Act Payable-adv., Rent Expense, Salaries Expense, Utilities Expense, Repair Service income, Have you been listening in class?

Answer 3

Don't think too much. Most of the information there are to confuse you.

Capital is equipment or #2 or $5000
Net Income is # 10 or $750

Now, I am not 100% sure on net income. I believe # 6 ($5100) and #11 ($120) are considered cash flow. If you provided the services even before collecting the cash, you can considered them as income. The uncollected portion is under collectible.

Answer 4

first prepare cash book showing opening balance and receipts datewise on the receipt side (Debit) and payments on right side (Credit). then post transactions in cash book to ledger accounts (giving each type of expense or income a different name). total all ledger accounts. profit and loss account can be constructed by listing expense items on the left and income on the right. the difference will be either profit or loss.
capital means all assets (including debtors) minus liabilities. end capital is arrived at by adding to the initial capital the profit or deducting loss therefrom. net income is the difference between income and expenses.
in accrued accounting system, you have to take care that only the income and expenses pertaining to the year are considered and those pertaining to next year or excluded.

Answer 5

DebitCredit
Cash10,000.00
Equity10,000.00

Equip5,000.00
Cash5,000.00

Cash400.00
Rent Expense400.00


Supplies-asset500.00
Cash500.00

Acct Payable250.00
Advertising250.00

Cash5100
Sales5,100.00

Equity1000
Cash1,000.00

Salary Expense2000
Cash2,000.00

Utility Expense140
Cash140.00

A/R750
Repair Income750.00

Cash120
A/R120.00

Cash6,180.00Debit
AR630.00Debit
Equip5,000.00Debit
Supply500.00Debit
AP250Credit
Equity9000Credit
Profit3060Credit
Income
Repair750Credit
Sales5100Credit

Expenses
Salaries2,000.00Debit
Rent400.00Debit
Utility140.00Debit
Advertising250.00Debit

Profit is 3060 and equity is 12060

Answer 6

ending capital
assets = liabilities + capital
capital = assets - liabilities