Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Fred Klein began his own business recently. He starts by depositing $5,000 of his own money (equity) in a business account.  Once he had done that his balance sheet was as shown:

Assets Liabilities and Equity

Cash $5,000 Equity $5,000

Total Assets $5,000 Total L&E $5,000

Throughout the next month, his first month of business, he completed the given transactions:  (All payments were made with checks out of the bank account.)

a) Purchased $2,500 worth of inventory, paying $1,500 down and owing the vendor the remainder.

b) Utilized $500 of the inventory in making product.

c) Paid employee's wages on the last day of the month of $1,100. 

d) Sold the entire product made in the first month on credit for $3,000. 

Paid rent of $1,200.

1. Prepare a balance sheet for Fred's business at the end of its first month.

2. Prepare Fred's income statement.

3. Prepare Fred's statement of cash flows for the month.

4. Is Fred's business profitable in an accounting sense? Is a cash flow sense?

5. Can the business fail as making a profit? How might that occur in the next month or so?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M915856

Have any Question? 


Related Questions in Financial Accounting

Todays workforce is increasingly made up of part-time or

Today's workforce is increasingly made up of part-time or contingent employees. Is organizational culture important if the workforce is comprised of mostly temporaries

Benoit company produces three products a b and c data

Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Demand for the company's products is very strong, with far more orders each month than the company can produce wi ...

Appendix a in the textbook details criteria for designing

Appendix A in the textbook details criteria for Designing or Evaluating a Long-Term Care System. Research a long-term care facility in your area and prepare a PowerPoint slide presentation detailing how this specific fac ...

Bad debt expense calculationsone of my classes a few terms

Bad Debt Expense Calculations One of my classes a few terms ago asked for an example or a bit better explanation regarding calculating Bad Debt Expenses. The following is what I have come up with. There are three basic m ...

The president of state university wants to forecast student

The president of State University wants to forecast student enrollment for this academic year based on the following historical data: year Enrollments 5 years ago 15,000 4 years ago 16,000 3 years ago 18,000 2 years ago ...

Assignment government-wide statements net assets amp

Assignment: Government-Wide Statements, Net Assets, & Journals Complete the following activities and submit your answers to your instructor in a Word document formatted to proper APA specifications. Include any relevant ...

Financial of accounting assignment1a explain the term bank

FINANCIAL OF ACCOUNTING ASSIGNMENT 1. a) Explain the term "bank reconciliation" and state the reasons for its preparation (6mks) b) Jalash, a sole trader received his bank statement for the month of June 2016. At that da ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "accounting methods" please respond to the following: • Evaluate the likely impact on a firm's va ...

In chapter 4 we discussed the six sigma methodology for

In chapter 4 we discussed the six sigma methodology for process improvement (DMAIC). Give an example of how this process could be used to structure a spend analysis effort.

Financecarefully work through the analysis of the companys

Finance Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now. As an adviser to the company you ar ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro