Subject: Business / Accounting
QuestionInstructions for the first two: label each item as an asset (A), liability (L), revenue (R) equity (EQ)1.CashPrepaid RentOffice SuppliesPrepaid InsuranceOffice EquipmentOwner’s CapitalAccounts PayableUnearned Rent RevenueOwner’s Withdrawals2.Advertising ExpenseRent RevenueRent ReceivablePatentsRent PayableFurnitureNotes PayableOwner, CapitalUtilities Expense3. What would be the normal ending balance for each item? Debit or CreditFees earnedOffice SuppliesOwner, WithdrawalsWages ExpenseAccounts ReceivablePrepaid RentWages PayableBuildingOwner, Capital4. Fill in the journal entries for this scenario.Aug 1. Dak Prescott, the owner, invested $10,000 cash and $43,000 of photography equipment in the company.
Aug 2 The company paid $2,200 cash for an insurance plicy covering the next 24 months.
Aug 5 The company purchased office supplies for $1,900 cash.
Aug 20 The company received $3,450 cash in photography fees earned
Aug 31 The company paid $869 cash for August utilities.DateGeneral JournalDebitCreditAug 01Aug 02Aug 05Aug 20Aug 315. Tony Romo operates a consulting firm called Not Today, which operations on August 1. On August 31, the ocmpnay’s records show the following accounts and amoutns for the monhth of August.Cash$ 25,300C. Camry Withdrawals$ 5,940Accounts Receivable22,310Consulting fees earned26,940Office Supplies5,190Rent Expense9,490Land43,960Salaries Expense5,550Office equipment19,940Telphone expense800Accounts payable10,800Miscellaneous expenses460With information provided prepare and August statement of Owners equity for Help Today; begin with Tony Romo, Capital July 31 of $0 (The owner invested $101,200 cash in the company on August1.) Hint: prepare an income statement to help you with the statement of Owners equity.6. Prestige Company has total assets of $1,125,000, liabilities of $450,000, and equity of $675,000. What is its debt ratio.A. 250%B. 67%C. 40%D. 150%7. Jason Garett received its utility bill for the current period of $700 and immediately paid it. Its journal entry to record this transaction includes aa. Credit to Utility Expense for $700b. Debit to utility expense for $700c. Debit to Accounts Payable for $700d. Debit to Cash for $700e. Credit to capital for $700