Question

Weida Surveying, Inc., provides land surveying services. During September, its transactions included the following. Sept. 1 Paid rent for the month of September, $4,400. Sept. 3 Billed Fine Line Homes $5,620 for surveying services. The entire amount is due on or before September 28. (Weida uses an account entitled Surveying Revenue when billing clients.) Sept. 9 Provided surveying services to Sunset Ridge Developments for $2.830. The entire amount was collected on this date. Sept. 14 Placed a newspaper advertisement in the Daily Item to be published in the September 20 issue. The cost of the advertisement was $165. Payment is due in 30 days. Sept. 25 Received a check for $5,620 from Fine Line Homes for the amount billed on September 3. Sept. 26 Provided surveying services to Thompson Excavating Company for $1,890. Weida collected $400 cash, with the balance due in 30 days. Sept. 29 Sent a check to the Daily Item in full payment of the liability incurred on September 14. Sept. 30 Declared and paid a $7,600 cash dividend to the company's stockholders. Instructions a. Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of September. Organize your answer in tabular form, using the column headings shown. Use I for increase, D for decrease, and NE for no effect. The September 1 transaction is provided for you. Income Statement Balance Sheet Transaction Revenue - Expenses = Net Income Sept. 1 NED Assets = Liabilities + Owners' Equity DNED b. Prepare a journal entry (including explanation) for each of these transactions. c. Three of September's transactions involve cash payments, yet only one of these transactions is recorded as an expense. Describe three situations in which a cash payment would not involve recognition of an expense.

can you answer part a,b and c

Answer 1

Income Statement Balance Sheet NE Assets = Liabilities + Owners' Equity NE NE NE Transaction Revenue - Expenses = Net Income Sep. 1 Sep.3 NE Sep.9 NE Sep. 14 NE Sep.25 NE Sep.26 NE Sep.29 NE NE NE Sep.30 NE NE NE NE NE NET NE NE NE NE NE NE

b. Date Sep. 1 Credit Debit 4,400 4.400 Sep.3 5,620 5,620 Sep.9 2,830 2,830 Sep 14 165 General Journal Rent Expense Cash (To record rent payment Accounts Receivable Surveying Revenue Services (To record surveying revenue receivable from customer) Cash Surveying Revenue Services (To record cash receipt for surveying services) Advertisement Expense Accounts Payable (To record advertisement expense due) Cash Accounts Receivable (To record cash receipt from Fine Line Homes) Cash Accounts Receivable Surveying Revenue Services (To record billed amount of $1,890, $400 received in cash) Accounts Payable Cash (To record payment to creditor) Dividends Cash (To record payment of cash dividend) Sep 25 5,620 5,620 Sep 26 400 1,490 1,890 Sep 29 165 165 Sep.30 7,600 7.600 Sep. 1 Sep.29 Rent Expense ----------------- Recognized as expense Payment to creditor ---------- Advertisement cost is an expense for the business but cash payment later will not affect the expense again. Cash dividend payment ------ Dividend is not part of expense, it is the distribution of profit to the shareholders Sep 30