Answered: Prepare a statement of owner’s equity.

Business

Accounting

Prepare a statement of owner’s equity.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter10: Individuals: Income, Deductions, And Credits

Section: Chapter Questions

Problem 16P

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Sam is a small business owner. In the year ended at the 30th of June 2019 the business has the below information: Beginning of Sam’s Capital account: $55,000 Net Income: $32,000 Outstanding Note Payable: $150,000 Total Expenses: $125,000 Ending of Sam’s Capital account: $54,000 Amounts withdrawn by Sam during 2019 will be: Select one: a. $33,000 b. $31,000 c. $23,000 d. $25,000
Timothy has been trading for many years preparing his accounts to 31 December eachyear. He decided to change his accounting date to 30 June. His first period prepared tonew date was 1 January 2019 to 30 June 2019, which showed a profit of £34,320. Theprevious year ending 31 December 2018 showed a profit of 65,410. On 30 April 2021 hedecided to pass his business to his son and retire.His business profits were as follows:i. £72,980 for year ended 30 June 2020,ii. £46,760 for period ended 30 April 2021.He had overlap profits from the first periods of trading of £6,120 – which is a profit for 2months. Required:Calculate Timothy's trading income for all tax years starting from 2018-19.
Tony Ling was reviewing his business activities at the end of the year (February 28, 2019) and decided to prepare a statement of Owner's Equity. At the beginning of the year his assets were. $600,000 and his liabilities were 165,000. At the end of the year the assets had grown to $1075,000 but liabilities had also increased to 310,000. The profit for the year was 440,000 Tony had withdrawn 110,000 during the year for his personal use. Prepare a Statement of owner's Equity
Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.During June, the following transactions were completed by Dean.1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APRwith interest being payable at the end of every month. No principle payments are due until August 1, 2021.1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.5-Jun Purchased cleaning supplies for $1,500 on account.7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.8-Jun Paid $100 for gasoline for the van.12-Jun Paid $200 for maintenance on the van.15-Jun Incurred wages expense of $2,000.16-Jun…
Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.During June, the following transactions were completed by Dean.1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APRwith interest being payable at the end of every month. No principle payments are due until August 1, 2021.1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.5-Jun Purchased cleaning supplies for $1,500 on account.7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.8-Jun Paid $100 for gasoline for the van.12-Jun Paid $200 for maintenance on the van.15-Jun Incurred wages expense of $2,000.16-Jun…
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Ann opened an Office Cleaning Service company on January 1, 2020. During 2020 she had the following transactions.(1) She started the business with investing $30,000 of her own money (business was organized as corporation)(2) She borrowed $40,000 from bank by issuing a 5-year note.(3) She purchased $15,000 of furniture and equipment- paid $5,000 cash and signed a note for the rest.(4) She purchased a truck for business use at $20,000 in cash.(5) During the year, provided $85,000 services to customers of which $71,000 was collected, the rest was not yet collected as of Dec. 31st.(6) During the year, she incurred $58,000 of salaries expense of which $2000 was still not paid as of Dec. 31st.(7) During the year, she paid $3000 interest on the note to the Bank(8) During the year, she took $3,000 as dividend.(9) During the year, she collected $150 interest from bank on company account(10)During the year, purchased $2000 of supplies in cash.(11)During the last week of the year, she…
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Herbert was employed for the first six months of 2023 and earned $90,000 in salary. During the next six months, he collected $8,800 of unemployment compensation, borrowed $12,000 (using his personal residence as collateral), and withdrew $2,000 from his savings account (including $60 of interest). He received dividends of $550. His luck was not all bad; in December, he won $1,500 in the lottery on a $5 ticket. Indicate how much (if any) of each item is included in Herbert's gross income. If your answer is zero enter "0". Item Salary Unemployment compensation Loan proceeds Savings account withdrawal (including interest) Dividend income Lottery winnings Gross income Amount Included in Gross Income 1000
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