Enter Tim\'s Tams, Inc.\'s May transactions and adjustments in the accounting eq
ID: 2434889 • Letter: E
Question
Enter Tim's Tams, Inc.'s May transactions and adjustments in the accounting equation below.1. May 1, paid 600 $ cash for 3 months for insurance coverage beginning May 1.
2. May 2, collected 8,000 $ from customers for sales made in April.
3. May 6, paid 7,200 $ of accounts payable from April purchase.
4. May 6 , purchased 800 caps @ $6.10 each on account, FOB shipping point. Shipping was $120 also on account.
5. May 8, paid 300 $ cash for supplies
6. May 31, during May, Tim's Tams sold 1,000 baseball caps @ $ 10 each on account. Tim's uses a FIFO perpetual inventory system. Beginning inventory consists of 500 caps at 6$ each.
7. May 31, Tim's Tams declared and paid 400 cash dividend to its shareholder.
8. May 31, Adjusted for insurance used during the month. Recall that on May 1, Tim's Tams paid $ 600 for three months of insurance coverage that began May 1.
9. May 31, Recorded one month's straight line depreciation on the $ 18,000 truck that gas a 6-year useful life and no salvage value.
10. May 31, counted the office supplies and found that $ 100 of supplies have not been used.
11. May 31, Recorded interest on the $ 16,000, 4 – month, 6 % note payable for the month.
There was a bginning balance sheet at 5/1/10 with this amounts:
• Assests:
5,155 cash
8,000 account receivable
3,000 inventory
200 supplies
18,000 truck
(500) account depration.
• Liabilities :
7,200 account payable
16,000 note payable
160 interest payable
• Contributed capital :
6,000 common stock
• Retained earnings :
4,495 retained earning
..
what is Tim's Tams balance sheet of May 31, 2010.
i need a expert answer.
thank u
Explanation / Answer
Balance Sheet as on 31 -dec Assets Cash 4655 Accounts Receivable 10000 Inventory 1875 Supplies 100 Prepaid Insurance 400 Truck 18000 Accumulated Depreciation -750 Total Assets 34280 Liabilities Accounts Payable 5000 Notes Payable 16000 Stock Holders' Equity Common Stock- 6000 Net Income - 2945 Less dividends - (400) Add: Opening RE - 4495 13040 Interest Payable 240 Total Liabilities 34280 Cash: Beginning Balance 5155 Add: Receipts Collectin for April sales 8000 Less: Payments: For Purchases during April -7200 For Insurance -600 Supplies -300 Dividends -400 Cash Balance 4655 Accounts Receivable Beginning Balance 8000 Less: collections in May -8000 Credit Sales in May 10000 Closing Balance 10000 Inventory Beginning Balance 3000 Add: Purchases 5000 Less: Cost of Goods Sold -6125 (500*6 ) + (500* 6.25) Closing Inventory 1875 Income Statement Sales 10,000 Less: Cost of Goods Sold -6125 Gross Profit 3,875 Less: Expenses: Insurance expense(600/3) -200 Supplies Expense -400 (200 + 300 -100 ) Depreciation -250 Interest Expense -80 Net Income 2,945
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