James Tanson a retired army officer opened Tansons Catering

James Tanson, a retired army officer, opened Tanson\'s Catering service. As his accountant, analyze the transactions listed next and present them in proper form.

a. The analysis of the transactions by using the expanded accounting equation.

b. A balance sheet showing the position of the firm before opening for business on October 31, 201X.

c. An income statement for the month of November.

d. A statement of owner\'s equity for November.

e. A balance sheet as of November 30, 201X

201X

Oct .25 James Tanson invested $20,000 in the catering business from his personal savings account.

       27 Bought equipment for cash from Munroe Co., $2,300.

       28 Bought additional equipment on account from Ryan Co., $2,000.

       29 Paid $900 to Ryan Co. as partial payment of the October 28 transaction.

(You should now prepare your balance sheet as of Octeber 31, 201X.)

Nov. 1   Catered a graduation and immediately collected cash, $1,300.

        5   Paid salaries of employees, $800.

       8   Prepared desserts for customers on account, $500.

    10    Received $250 cash as partial payment of November 8 transaction.

   15     Paid telephone bill, $400.

   17    Paid his home electric bill from the company\'s checkbook , $160.

   20    Catered a wedding and received cash, $1,800.

  25     Bought additional equipment on account, $1,200.

28      Rent expense due but unpaid, $650.

30      Paid supplies expense, $300.

Solution

a.

b.

a.

c.

d.

e.