Question Hel P2-63A (similar to) During the fist month of operations Thompson Se

Question

Question Hel P2-63A (similar to) During the fist month of operations Thompson Services, Inc.completed the following transactions (Click the icon to view the transaction data.) Recond each vansaction in the joumal. Be sure to record the date in each entry Expianations are nat required. 2 Post the transactions to the T-accounts, using transaction dates as 3 Prepare the tial balanoe of Thompson 4 Timohy Thompson, the manager, referenoes Label the ending balance of eech Services, Inc, at October 31 of the curment yoar asks you how much in total resources the business has to work with, how More Info October 31 DebitCredit Oct 2 Thompson Services received $68,000 cash and issued common stock to the S 20,190 2100 800 11,500 39,000 Cash 3 Purchased supplies, $800, and equipment $11,500, on account Performed services for a customer and received cash $5500 7 Paid cash to acquire land, $39,000 11 Performed services for a customer and biled the customer, $4,500 Accounts receivabie Land Accounts poyable Common stock Service revense Salary expense Advertising expense Usities expense homoson expects to colect within one month. 6 Paid for the equipment purchased October 3 an account 17 Paid for newspaper advertising, $540 18 Received partial payment from customer on account, $2.400. 22 Recoived and paid the water and electricity bills, $370 29 Received $2,000 cash for servicing the heating unit of a customer 31 Paid emplayee salaries, $2,500 31 Declared and paid dividends of $1,800. 86,000 12,000 2,500 540 370 Total 78 800 $ 78 800 Print Done Requiremant 4. Tmothy Thompson the manager, asks you how much in total esources the business hes to work wan, how much ik owes and whather October was proftable (and by how much) Total nesouroes$73.590 Amount owed 800 profitable, as t repoted o $ The company of $

Explanation / Answer

$ $ Service revenue ( A )               12,000 Less: Operating expenses Salary expenses                 2,500 Advertising expenses                    540 Utilities expenses                    370 Total operating expenses ( B )                 3,410 Net income ( A ) - ( B )                 8,590 Resources; $ Cash               20,190 Accounts receivable                 2,100 Supplies                    800 Equipment               11,500 Land               39,000 Total resources               73,590 Owes; Accounts Payable                    800 Profit                 8,590

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