Principles of financial and managerial accounting prob 1-3b & 2-2b

Prob. 1–3B
1.
MARINER FINANCIAL SERVICES
Income Statement
For the Month Ended January 31, 2008

Fees earned $52,400
Expenses:
Salaries expense $ 15,000
Rent expense 7,500
Autoexpense 4,500
Supplies expense 455
Miscellaneous expense 1,280
Total expenses 28,735
Net income $23,665

2.
MARINER FINANCIAL SERVICES
Retained Earnings Statement
For the MonthEnded January 31, 2008

Retained earnings, January 1, 2008 $ 0
Net income for January $23,665
Less dividends 9,000
Increase in retained earnings 14,665
Retained earnings, January 31,2008 $14,665

3.
MARINER FINANCIAL SERVICES
Balance Sheet
January 31, 2008

Assets Liabilities
Cash $ 29,140 Accounts payable $ 600
Accounts receivable 10,400
Supplies 725Stockholders’ Equity
Capital stock $25,000
Retained earnings 14,665
Total stockholders’ equity 39,665
Total liabilities and
Total assets $ 40,265 stockholders’ equity $40,265

Prob.2–2B Mudcat Realty

1.
(a) Cash 15,000
Capital Stock 15,000

(b) Rent Expense 2,500
Cash 2,500

(c) Supplies 850
Accounts Payable 850

(d) Accounts Payable 400Cash 400

(e) Cash 15,750
Sales Commissions 15,750

(f) Automobile Expense 2,400
Miscellaneous Expense 600
Cash 3,000

(g) Office Salaries Expense 3,250
Cash 3,250(h) Supplies Expense 575
Supplies 575

(i) Dividends 1,000
Cash 1,000
Prob. 2–2A Continued

2.
|Cash | |SalesCommissions |
|(a) 15,000 |(b) 2,500 | | |(e) 15,750|
|(e) 15,750 |(d) 400 | | |
| |(f) 3,000...