Question

Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on...

Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on April 1, 2019, he invested $52,000 in cash and $21,000 in equipment, and opened an account at Office Plus by purchasing $1,700 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $6,400, paying the full amount in advance. Prepare a Balance Sheet for Cullen Consulting Services as of April 1, 2019, before he conducts any services.

Homework Answers

Answer #1

the following is the balance sheet

.................................Cullen Consulting Services

...................................Balance sheet...............

...................................April 1,2019............

Assets Liabilities
Cash $45,600 Accounts payable $1,700
supplies $1,700
prepaid rent $6,400 Owner's equity
Equipment $21,000 Cullen beaty capital $73,000
Total $74,700 $74,700

note:

cash balance = $52,000 intial investment - $6400 paid towards lease => $45,600.

since supplies are purchased on accout : account payable to the tune of $1700 will be created.

Since lease of one year is paid in advance, it results is creation of prepaid rent..

capital of cullen beatty = cash + equipment => $52,000 + 21,000 =>$73,000.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on...
Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on April 1, 2019, he invested $54,000 in cash and $23,000 in equipment, and opened an account at Office Plus by purchasing $1,900 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $6,800, paying the full amount in advance. Prepare a Balance Sheet for Cullen Consulting Services as of April...
On January 1, 2019 Potter Consulting Services Incorporated (PCS Inc.) opened for business.  The corporation completed the...
On January 1, 2019 Potter Consulting Services Incorporated (PCS Inc.) opened for business.  The corporation completed the following transactions during January.  Analyze each transaction and make the appropriate journal entry in the space provided. Thank you!! a.   January 1   Each stockowner contributed cash and received Common Stock. A total of $500,000 cash was paid for 500,000 shares with a $1 par value per share. b.   January 1 Paid 3 months office space rent in advance in cash for a total of $6,000 c.   January 2  Purchased Office...
For the past several years, Steffy Lopez has operated a part-time consulting business from his home....
For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July: Jul. 1 The following assets were received from Steffy Lopez in exchange for common stock: cash, $14,000; accounts receivable, $20,800; supplies, $3,100; and office equipment, $7,500. There...
Internet Consulting Service, Inc., adjusts its accounts every month. The company’s year-end unadjusted trial balance dated...
Internet Consulting Service, Inc., adjusts its accounts every month. The company’s year-end unadjusted trial balance dated December 31, current year follows. (Bear in mind that adjusting entries already have been made for the first 11 months of current year, but have not been made for December.) INTERNET CONSULTING SERVICE, INC. Unadjusted Trial Balance December 31, Current Year Debits Credits Cash $ 49,100 Consulting fees receivable 23,400 Prepaid office rent 6,300 Prepaid dues and subscriptions 300 Supplies 600 Equipment 36,000 Accumulated...
Question 61 Cal plans to open a small business marketing consulting firm operating as a corporation....
Question 61 Cal plans to open a small business marketing consulting firm operating as a corporation. He signed an office lease with landlord as Marketing Priorities, Inc. prior to incorporating the business. Shortly thereafter, he gave up the consulting idea and took a job teaching. Is Cal personally liable on the lease? ? Question 62 The principal of a company co-mingled his business expenses and personal expenses. That is, he used business profits to pay his ex-wife’s alimony. When the...
Part I Carl Redmon completed the following transactions during December: Dec 2   Invested $25,000 to start...
Part I Carl Redmon completed the following transactions during December: Dec 2   Invested $25,000 to start a consulting practice titled Redmon Consulting.         2   Paid $6,000 for a 2-year insurance policy.         3   Paid cash for a computer, $2,400. It is expected to remain in service for five years, and have a $400 salvage value at the end of its useful life.         4   Purchased office furniture on account, $4,500. The furniture should last for five years.         5   Purchased...
Required information [The following information applies to the questions displayed below.] Santana Rey created Business Solutions...
Required information [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a...
6 Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies...
6 Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019....
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus...
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus Amazon CEO Jeff Bezos just published his annual letter to shareholders, and the efforts his company is taking to address the COVID-19 crisis were front and center. He outlined the company’s plans to build a lab to test employees and the social distancing measures its implemented in its facilities among other initiatives. Other than the coronavirus pandemic, Bezos also discussed the retail giant’s efforts...
PREPARE JOURNAL ENTRIES FOR THE FOLLOWING. 1. January 2: Mr. Burns opened up his new company...
PREPARE JOURNAL ENTRIES FOR THE FOLLOWING. 1. January 2: Mr. Burns opened up his new company and dissolved the old one. The balances of the accounts (with the exception of fixed assets and uncollectible) were transferred over from the old business. Mr. Burns decided that he needed to invest more money into the business in order to get operational. Mr. Burns invested $2,120,000 to create stock. 2. January 3: Mr. Burns bought a cookie making machine for $500,000 from Cookie...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT