Question

pls can you solve this exercise 29, and 30

active 4 E1-29 Using the accounting equation to analyze business transactions Ashley Stamper opened a medical practice. During July, the first month of operation, the business, titled Ashley Stamper, MD, experienced the followin cvents: Jul 6 9 12 15 20 Stamper contributed $68,000 in the business by opening a bank account in the name of A. Stamper, MD. The business gave capital to Stamper. Paid $56,000 cash for land. Purchased medical supplies for $1,500 on account. Officially opened for business. Paid cash expenses: employees' salaries, $1,300; office rent, $1,500 utilities, $100. Earned service revenue for the month, $13,000, receiving cash. Paid $1,050 on account. 31 31 Analyze the effects of these events on the accounting equation of the medical practice of Ashley Stamper, MD, using the following format: LIABILITIES + Land Accounts Payable + EQUITY Stamper, - Stamper, + Service - Salaries - Rent Capital Withdrawals Revenue Expense Expense - Utilities Expense 5 E1-30 Preparing the financial statements Estella Osage publishes an online travel magazine. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit financial statements. With little knowledge of accounting, Estella Osage, the owner, does not know how to proceed. Requirements 1. What are the four financial statements that the business will need to prepare 2. Is there a specific order in which the financial statements must be prepared 3. Explain how to prepare each statement. Use the following information to answer Exercises E1-31 through E1-33. The account balances of Wilson Towing Service at June 30, 2018, follow: Equipment Office Supplies Notes Payable Rent Expense Cash Wilson, Withdrawals $ 25,850 Service Revenue 1,000 Accounts Receivable 6,800 Accounts Payable 900 Wilson, Capital, June 1, 2018 1,400 Salaries Expense $ 15,000 9,000 8,000 3,250 2,400 3,500

Answer 1

E1-29:

	ASSETS					=	LIABILITIES	+	EQUITY
Date	Cash	+	Supplies	+	Land	=	Accounts Payable	+	Stamper, Capital	-	Stamper, Withdrawals	+	Service Revenue	-	Salaries Expense	-	Rent Expense	-	Utilities Expense
Jul.6	$68,000	+		+		=		+	$68,000	-		+		-		-		-
Jul.9	($56,000)	+		+	$56,000	=		+		-		+		-		-		-
Jul.12		+	$1,500	+		=	$1,500	+		-		+		-		-		-
Jul.15		+		+		=		+		-		+		-		-		-
Jul.20	($2,900)	+		+		=		+		-		+		-	$1,300	-	$1,500	-	$100
Jul.31	$13,000	+		+		=		+		-		+	$13,000	-		-		-
Jul.31	($1,050)	+		+		=	($1,050)	+		-		+		-		-		-
Total	$21,050	+	$1,500	+	$56,000	=	$450	+	$68,000	-	$0	+	$13,000	-	$1,300	-	$1,500	-	$100

E1-30:

1. Four financial statements:

Financial Statements
1	Income Statement
2	Statement of Owner's equity
3	Balance Sheet
4	Cash flow statement

2. Yes, Order as follows

First	Income Statement
Second	Statement of Owner's equity
Third	Balance Sheet
Fourth	Cash flow statement

3.

Income statement:
Record all relevant period revenues and deduct all relevant period expenses from revenues. Result is net income for the relevant period.

Statement of Owner's equity:

Starting with beginning capital add any additional contribution ,Net income for the relevant period and deduct any withdrawals. Result is 'Ending capital balance'.

Balance sheet:

It should be recorded by showing All Assets, All liabilities and Owner's equity

Cash flow statement:

Cash flows inflows and outflows should be recorded by categories. such as 'cash flows from operating activities, cash flows from investing activities and cash flows form financing activities'. Sum up all these three categories. Result is Surplus/(deficit). Add this result to beginning cash balance for 'Ending cash balance'.