Financial Accounting: P1-54 Daniels Consulting began operations and completed the following

Financial Accounting 
P1-54 Using the accounting equation for transaction analysis, preparing financial statements, and calculating return on assets (ROA) 
Daniels Consulting began operations and completed the following transactions during December 2016. 
Dec 2. Stockholders contributed $20,000 cash in exchange for common stock. 
Dec 2. Paid monthly office rent, $2,000. 
Dec 3. Paid cash for a computer, $3,600. This equipment is expected to remain in service for five years. 
Dec 4. Purchased office furniture on account, $3,000. The furniture should last for five years. 
Dec 5. Purchased office supplies on account, $800. 
Dec 9. Performed consulting services for a client on account, $2,500. 
Dec 12. Paid utilities expense, $150. 
Dec 18. Performed service for a client and received cash of $2,100. 
Dec 21. Received $2,400 in advance for client service to be performed in the future. (This increase the Unearned Revenue account, which is a liability. This account will be explained in more detail in Chapter 2.) 
Dec 21. Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately. 
Dec 26. Paid $200 on account. 
Dec 28. Collected $400 on account. 
Dec 30. Cash dividends of $1,000 were paid to stockholders. 

Requirements: 
1. Analyze the effects of Daniels Consulting's transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash, Accounts Receivable, Office Supplies, Equipment, Furniture, Accounts Payable, Unearned Revenue, Common Stock, Dividends, Service Revenue, Rent Expense and Utilities Expense. 
2. Prepare the income statement of Daniels Consulting for the month ended December 31, 2016. 
3. Prepare the statement of retained earnings for the month ended December 31, 2016. 
4. Prepare the balance sheet as of December 31, 2016. 
5. Calculate the return on assets for Daniel Consulting for December 2016.
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